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Ashtead Share Price Keeps On Building

By Malcolm Stacey | Wednesday 26 November 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 Shufflers. Let's take another peek at one of my all-time great shares. The company hires out building and industrial tools and gear and, though it's a British firm, it does a lot of business in the currently buoyant USA.

We're talking about Ashtead (AHT). This is a share whose graph nearly always points north. It seems to me to put on half a percent nearly every day.

This share could once be bought for 29p. It was 70p around 2009. It is now trading at around £10.50. Yes, that's not a mistake: £10.50p.

It seems to me that the company can do no wrong. And some big brokers seem to agree with me. In a fairly long list, I could find no broker who advised we sell and only one who was ' neutral'. The rest advised buying more stock.

I read that Credit Suisse in October actually had a target for the shares of £30. Though most brokers fix a target at between £11 and £12.

Yes, I know targets can be wide of the mark. But it's a good sign, don't you think?

There aren't many shares you can feel easy with these days. But I am sitting on big paper profit and I have no plans to sell.

The PE ratio gives no cause for concern at 21, though the yield is nothing to shout about at 1.08%.

You might want to take a view on the housing markets in Blighty and the USA before you commit yourself, though. I happen to think that Britain's building industry will boom in the next few years, fuelled by a big housing shortage, though I'm not so clear about America.

But then what the heck, this share keeps on rising – so the market is as optimistic about Ashtead as I am.

And a few others agree 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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