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Build on America's Building Revival by Eyeing Up Ashtead the Mighty.

By Malcolm Stacey | Saturday 24 October 2015


Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Hello Share Pushers. Firms with a strong connection to America are doing well at the moment. Signet (SIG), the sparkling jeweler keeps on putting on value. Which is quite understandable, as I sold all my holding last month.

But there is one USA connected British share which I did not get rid of, and probably never will, if they continue their long success story,  

That company is Ashtead (AHT) and it loans out tools and plant to builders. Doesn’t sound like a massive business, but it is, with widespread outlets across the pond.

The share has been moving steadily upwards for years now. But there was a glitch a few months ago when 20% was chipped off the share price. But then again, most Footsie giants took a powder around this time.

What has boosted the share by about 12% over the last week are two American factors. One: their employment figures were nicely up. And second there’s still no sign of US interest rates being hitched up.

Both factors sent the Dow up very sharply. And so Ashtead and Signet both benefited.

The share settled at just over a tenner. But loads of brokers - if you attach any importance to this sort of thing - put their AHT target prices between £12 and £15.

That might be a wholesale exercise in over-optimism, but if they are half right it still adds up to a tasty punt.

Also, a big rival US company, called United Rentals, reported a very good set of quarterly figures last week. So Amsted could well benefit from a similar boom.

Oh yes, and some new figures show that construction in the USA is now making a rally.

When you get a good well-managed company in a market which is growing like a triffid, then there is always a good chance that the share will rise nicely.

As we always say in the Punter’s Return. God bless. 

Malcolm Stacey has been writing about shares for more than 20 years. His first book "The Armchair Tycoon" was first published in 1998 but a revised 2014 e-version is now available. To obtain a FREE copy fill in the form HERE


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