Date: Sunday 13 May 2012
Pump and valves specialist Weir Group has been a favourite of the bears this year on concerns the low US natural gas price would crimp orders for equipment for the shale gas industry. The boom in fracking and shale gas production has resulted in a glut of gas in the US – and it does not yet have the infrastructure to support exports. This has resulted in producers reining in gas developments. However, 32 per cent of total revenues in 2011 were generated by the oil and gas unit – and not all of these orders related to US shale. Last week’s trading update revealed that orders in oil and gas slumped 26 per cent on a like-for-like basis in the first quarter. However, order input at its minerals division rose 18 per cent, which was ahead of expectations. Power and Industrial orders were also strong, up 35 per cent, or 27 per cent on a like-for-like basis. This meant the group maintained its full-year guidance. Questor feels very strongly that the long-term prospects of Weir outweigh the short-term issues in some of its markets. Each of its sectors is in a long-term bull market as the global population rises and demand for energy and basic materials rises. For that reason it concludes by saying that, “Questor maintains a buy on this quality company.”
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| Currency | UK Pounds |
|---|---|
| Share Price | 123.90 p |
| 1 Year Change | £0.01 |
| 1 Year % Change | 0.81% |
| DIV Yield % | 4.8% |
| NAV (Est.) | 116.59p | (25-May-2012) |
|---|---|---|
| Discount | 5.03% | (Intraday) |
| Gearing | 100 | (30-Apr-2012) |
| Total Assets | £1,012.05m | (30-Apr-2012) |
| Structure | Conventional |
|---|---|
| Launch Date | 13-Mar-2007 |
| Mangement Group | 3i Investments |
| AIC Sector | Sector Specialist: Infrastructure |
| Latest | Previous | |
|---|---|---|
| Final | Interim | |
| Ex-Div | 20-Jun-12 | 14-Dec-11 |
| Paid | 13-Jul-12 | 11-Jan-12 |
| Amount | 2.97p | 2.97p |
| Time | Volume / Share Price |
| 16:35 | 173,832 @ 123.90p |
| 16:29 | 420 @ 123.80p |
| 16:28 | 2,434 @ 123.50p |
| 16:28 | 88 @ 123.60p |
| 16:28 | 792 @ 123.60p |
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