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Ashtead Shares Keep Building – and the Party Is Just Beginning.

By Malcolm Stacey | Thursday 28 August 2014


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 Grinders: Ashtead (AHT) is a go-ahead company which hires out tools and bigger gear to the building industry.What they supply will always be in demand because this kind of thing is pricey and builders, who often can only keep going by taking big loans, like to keep their costs down. Hiring the heavy stuff is a good way of doing it.

Ashtead is one of my star performers. It is a three-bagger for me over the last few years, but some earlier investors have done a lot better than that. Compare that to some of your more successful shares, which I bet, have only put on 20-30% in the present bull run.

Ashtead's share price had a nice fillip this week, probably because American shares rose on some positive talks among financial bigwigs at Jackson Hole in Wyoming. The firm has a hefty presence across the Big Pond.

They do say that US shares are over-valued, but I don't think Ashtead stocks, in the British Footsie are toppy. The price to earnings ratio is 21, which is rather high. But the recent graph says that the market thinks the future is bright – so the P/E doesn't matter all that much.

The share is now only a few points away from its all-time high, so it might be better to wait till a small softening, but then again the share keeps on heading north. So don't wait too long.

Remember that UK house builders recently reported much better figures – and if the building market gets stronger – as the government is determined it will – then Ashtead will seen even happier times.

Lots of happy times in the Punter's Return. 

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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Comments

3 comments


  1. nigel somerville

    All very well, and I was keen here too but a VERY heavy set of director share sales recently put paid to that!

  2. Like the company as well.

    Quite some debt though, which is a worry due to the risk of rising interest rates. The debt has so far kept me from buying, which in hindsight is a bit of a pity.


  3. Malcolm Stacey

    Hi Both. You are both right to be wary on those points you make. However, I’m a great believer in staying on board while the share price keeps on going up. It could be just misplaced confidence, but the reason doesn’t matter.I am however selling when it finally runs out of steam.


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