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By Malcolm Stacey | Tuesday 6 January 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 Funsters. At the risk of boring you so early in 2015, I'm returning to my drum banging for Ashtead (AHT).

As I write, the share is up nearly another 3%.Which is a tasty rise, given the fact that the stock has been slowly crawling up the cliff face for some months now.

This week's surge is possibly due to another broker recommending the stock and setting a target of nearly £14.57. The shares are presently around £12.

A look at the long-term graph will convince you that this is that very rare stock – one which keeps on forging ahead, despite the general situation for shares, which has not been good.

I have some ideas why the stock is so magical. Here are a few of them. The company is well represented in the USA, a country whose share prices, for good reasons or bad, keep on breaking new records.

The company has nothing to do with oil and mining, which have performed so badly last year.

The building industry is about to begin a huge surge, in my view anyway.

The government is anxious to increase housing stock. It already has some jolly good schemes in place and there will be more as we approach the general election. All those immigrants who come in will be wanting homes, too. Never mind the couples who keep on splitting up.

There is already a huge shortage of houses now and when supply fails demand, you know what happens.

Ashtead does not build houses. But it loans out heavy and expensive equipment to the building industry. This saves building firms money, while many of them are presently still strapped for cash after their loan facilities dried up due to the still-felt effects of the 2008 credit crunch.

Yes indeedy, if I had any spare cash I would buy some more. As would quite a few customers 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

4 comments

  1. Malcolm,
    Yes a good steady Eddy share as yer man Sugar might say.
    With what may be turbulent times ahead, ummmmmmmmm.
    Cheers to all at Punters


  2. HangingsTooGoodForThem

    Ouch!!!
    Downgrade of US peer company.

  3. Malcolm,

    This stock looks a bit too expensive on current valuation. Looking at the pull back today, the market may believe this too! I would be tempted if it corrects another 10% or so.

    Not the best day to tip the share, just before it crashes down 8% £10.96 last seen! Sods law.

  4. Don’t own a crystal ball, sadly. However, the share has taken a nasty tumble before and recovered sharpish. More a buying opportunity now than it was last week. Let’s compared notes in a fortnight’s time, gang..


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