Has Speedy hire turned the corner?
It's looking interesting. Any thoughts?
Takeover time?

StockMarketWire.com
Cantor Fitzgerald has effectively double-downgraded its recommendation on Speedy Hire (LON:SDY) and moved straight to "sell" from "buy" following last week's announcement that full year pre-tax profits would be cut by around £3 million after the company identified accounting irregularities in its International Division. As a result, the Finance Director of this division has been suspended and Group Chief Executive, Steve Corcoran, announced that he will be stepping down in due course. The broker has lowered its price target to 45 pence per share (from 75 pence) to bring it in line with its peer group. "We were previously BUYers of the shares as we saw Speedy Hire as a geared play on UK economic recovery, Cantor said. "Given last week's events, we have changed our view."

3 Dec: Seymour Pierce also joins the Sell lot. TP down from 75p to 45p.

4 Dec: RBC Capital Markets: Neutral - TP down from 70p to 51p.

The CAT bounce did not last long and now back further down

a 45p would be a reasonable price to start buying again as is also around the NAV 45.8p

StockMarketWire.com
Speedy Hire has now received waivers in respect of the breach of those terms and continues to be in compliance with the financial covenants under its banking facilities.

On Nov. 28, Speedy said that, following management changes within its International Division, information had emerged indicating the mis-statement of a number of accounting balances within the International Division over recent accounting periods.

The Company said whilst it remained in compliance with the financial covenants under the Group's banking facilities, these circumstances had resulted in a breach of certain other terms.

Seems to be ticking up quietly and steadily.
What do you make of that, HC, Skinny? Is it better to
err on the side of caution?

I was waiting for more news as they said that they were in breach of 'other terms'.....whatever they are! I considered the risk too high that more bad news was to follow. Not currently holding SDY and think I will stay out for the moment.

Thanks, HC. I've always bought under 60 and sold between 64 and 65,
so have done well out of them and don't hold now, as I sold a few days before the debacle.
I was tempted but on reflection, I will err on the side of caution.

Feb 12:

Investec Securities reiteration: Buy - TP: 100p.

Panmure Gordon reiteration: Buy - TP: 88p.

Sp seems pretty reluctant to get anywhere near the broker targets.

Triple top on the chart (post 189).

Things look very optimistic . 100p looks a possibility.

Trading Statement on 26th March.

Might be worth a punt, though no knowing what the figures are going to look like before the 26th. Could go either way, imo. We know there is going to be a £3m write down, but wonder if there is more bad news from the International Div? They were also in breach of certain covenants, which seems to have fallen out of the news.

I've enjoyed the recent run, but am out and watching as of this morning.

HC and skinny, I agree. See my comment on the DTY thread.

Final Results

Financial Highlights
• Revenue up 2.9% to £349.7m (2013: £340.0m#)
• Trading performance impacted by EBITA* loss of £4.3m in the International Division
• EBITA* for the remainder of the Group up 11.9% to £26.4m (2013: £23.6m)
• Adjusted profit before tax * down 4.6% to £14.6m (2013: £15.3m#)
• International Division creates drag on ROCE which is down to 7.0% (2013: 7.5%#)
• Group ROCE (excluding International) up to 9.5% (2013: 8.5%#)
• Dividend increased by 15% to 0.61 pence per share (2013: 0.53 pence per share)
* Before amortisation and exceptional costs.
# Restated.

Trading and Operational Highlights to 31 March 2014
• Q4 UK & I revenue growth of 4.9% (before planned disposals) reflecting progress throughout the year
• Strong performance in new contract wins: Babcock, National Grid, Northern Gas Networks
• Network programme accelerated with completion of Glasgow Multi Service Centre and 6 new superstores
• Middle East investigation complete
• New CEO and refreshed UK and Middle East management teams in place

Trading and Operational Highlights Post Year End
• Trading has started well building on Q4 FY2014 progress
• Preferred bidder status announced for Balfour Beatty Tier 1 Contract
• New relationship established and contracts won with Skanska
• Customer focus broadened to capture potential offered by regional markets

May 13:

Investec: Buy - New TP: 100p

Cantor: Sell - TP: 51p

Classic bullish engulfing candle atm.