Kentz

4117 days ago

Guest Post Sam Bottell: Kentz Trading statement, buy tip vindicated

I spent two years working along Sam Bottell as he worked with minesite.com and oilbarrel.com and he is a good, honest and clever chap. Now that he is starting his career freelance writing as well as an organiser of the UKInvestor Show I have no hesitation in helping him along via this blog as a guest contributor. As such I bring to your attention a share tip from TradingResearch Point on Kentz where Sam has already been correct and is now doubling up.

It is always something of a risk recommending a share ahead of a trading statement. I took that risk with Kentz Corporation (KENZ) on January 6th and a trading statement today vindicated that call: earnings are in line with what I expected, the order backlog better than expected as was the net cash position. The last time I commented the shares were 381p – they closed today at 424p, valuing the company at £498 million.

4131 days ago

Guest post Sam Bottell: Kentz - IMS Demonstrates Earnings Visibility and balance sheet strength: Neither fully discounted

I spent two years working along Sam Bottell as he worked with minesite.com and oilbarrel.com and he is a good, honest and clever chap. Now that he is starting his career freelance writing as well as an organiser of the UKInvestor Show I have no hesitation in helping him along via this blog as a guest contributor. As such I bring to your attention a share tip from him from TradingResearch Point…

As it happens I agree with his conclusion.

Kentz Corporation (KENZ) is a global engineering specialist solution services company providing full engineering, procurement and construction services (EPC) to mainly the energy and resources sector. The company’s niche and positioning is as a tier-two contractor and bids for small / medium sized projects where competition is relatively low. Over the years Kentz has become a global player and currently provides solutions with 14,000 employees operating in 29 countries worldwide. The relative strength of the oil price and Kentz’s global capacity in mining means that this company has delivered consistent sales, profits, cashflow and dividend growth since its IPO. A trading statement on November 12 indicated that nothing is changing in this respect. I would argue that a 381p share price (from a year high 490p) fails to discount this. Here is why.