Aggreko plc (AGK) £14.70

Aggreko plc provides power and temperature control solutions to customers who need them either very quickly, or for a short or indeterminate length of time. Recently downgraded by Credit Suisse, they feel that demand will not be there for AGK in the 2nd half of the year. However, AGK say profits will be higher in this period! Share price has dropped from a £24 high last year. Price has bounced slightly just above £14, next drop would probably be down to £12. However, we like AGK’s board. The company also has a wonderful consistency of growth at 92%. We show long term share value of £64. AGK have some debt at 1.6 years of profits. And their capex to EPS is high, however, their value and growth charts are all good except cash flow growth which is reducing latterly. End of year operating margin was 24% and this has dropped the last reported 6 months to 19%. Depreciation sits at 31%, slightly high. They are buying treasury stock, a good sign for the future share price. 

Tide is down, wave is also down and ripple currently showing a move to up. If this is the bottom then share price would be about £16.5 before the tide showed up. A short term buyer, or spread better, would need to wait for the tide. However, for a long term purchaser, this could be a good time if you accept price could fall to £12 before recovering. Your call.

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