Would anyone know why there has been such a large number of shares sold and no buying? Is there something we are not aware of?

a slow start considering positive results- i think a few broker notes /recommendations are needed. although most brokers hold a add/ buy rating.

new sp targets could do it.

From todays Telegraph

Costain finds novel way to cut deficit - by matching payments to dividends
By Alistair Osborne (Filed: 16/03/2006)


Costain has devised a novel way of reducing its pensions deficit, agreeing to match dividends to shareholders on a pound-for-pound basis with payments into the scheme.

The engineering and construction group, which has a 69.5m deficit net of deferred tax, has agreed the plan with the scheme's trustees and the pensions regulator David Norgrove, who has "agreed the proposal in principle".


Andrew Wyllie: 'This is an elegant and ground-breaking solution'
The plan was hatched as Costain prepares to return to the dividend list. Last April, investors approved a restructuring of the company's -balance sheet to reset its distributable reserves at nil. Costain hopes to pay a token final dividend this year.

Andrew Wyllie, who took over as chief executive in September, said the plan would see shareholders and pensioners treated equally.

"I was very keen to get together a strategy that tied up the two issues in the company going forward," he said. "One of the most common questions was 'What are you doing with the dividend and the pensions deficit?' This is an elegant and ground-breaking solution for all parties involved."

Costain closed its final salary scheme to new members from June 2005, while from this April the scheme is being changed to one based on career average earnings.

At the same time, Costain will increase its contributions to the scheme from 15.6pc of pensionable salaries to 21.6pc, while active members will see their contributions rise from 8pc to 10pc.

The scheme has 1,400 members currently working for Costain, just under 4,000 deferred pensioners and a little over 2,000 pensioners.

The pension plan was revealed alongside a 138pc rise in full-year profits to 25m pre-tax, but adjusting for Spanish property profits, the underlying improvement was 6pc. Turn-over rose 11pc to 773m. Costain shares rose 2 to 53p.

Mr Wyllie said he would focus activities where the group had leading market positions, such as water and road projects, and away from, for example, high-rise residential.

Costain is working on the Channel Tunnel Rail Link project at St Pancras, where the company in charge of the development - London and Continental Railways - faces a potential bid.

Asked if he thought a bid could delay the project, Mr Wyllie said: "I have absolutely no sense of that whatsoever. There's total focus on getting it built."

good results now lets see the sp mirror this strong performance!.

no rest until 70p!

its about time this stock got the attention it deserves. impressive results and growth looks encouraging. pick of the sector for me atm!.

If it goes to 70p it may well carry on to 100p+, thats wishfull thinking of course, however, you could say that on an eps of 8-9 for 2006 and a re-rating to 10-12x, bingo 100p+

In other words cost has plenty of upside imo and if the the divi is restored soon, well lots of buying!!

keep the faith L

agree 100p has to be a long term target- thats if they have not received a bid by then?-

Limited press coverage L, was just looking at similar companys in Costains sector and Carillion who are a slightly larger Costain, in some respects, are rated at 15x, so 100p puts Cost on a par with their peers imo, could be absorbed by Carillion!!! at a premium.

Gut feeling, Cost will be taken out at 135p!!

i'd settle for that!.

some decent buys this am- ratio 3 to 1 in favour of buyers. so far!.

Price is being held back!! expect some movement later, 60p breakout L, heading to 70P!!

still being held!?- positive day on the buying front about 730k v 200k!.

held back AGAIN - 1.8m buys v 98k sells. still frustrating.

They will need to find some sellers soon, presumably they were them at 56.5p, we shall see, it'll take a while I'm sure to get to 70p! it's coming though.

Looks like we have a new level! 55p solid from here

Patience my boy!

LIZ, YOU GONE ON YOUR HOLIDAYS!

ellio, sold stake in cost - want to take more risk. but think this is a decent stock with encouraging med /long term potential. i like the look of goo and have increased holding!.

Somebody took a few today with a buy of 550k
Slowly but surely up to 75p by next results I suspect

Peter

Think we'll see it sooner than tht Pj!!

My bet is a break of 60p soon, before working to 70p by May, now there's optimism, if we get a big contact announcement along the way or some news, 75p easy, 2-3 months max

Pj, am expecting 100p+ for cost.