SnackTime Discussion Board http://www.iii.co.uk/investment/detail?code=cotn:SNAK.L&display=discussion http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.8233817
Published Date: 11 May 2011

By Margaret Lawson
of SVM UK Growth Fund

Ashtead is a leading rental equipment provider in the US and the UK.
Over 80 per cent of the company's revenues are generated in the US, where its Sunbelt subsidiary is the second largest in the market.
Rental penetration in the US is significantly lower than in the UK as a greater number of machinery users have historically preferred to own rather than hire. A lack of investment by these users in recent years has resulted in an ageing equipment base, and the easy credit environment which helped fund these purchases no longer exists.

Sunbelt has a market leading position amongst smaller contractors, and is likely to benefit as they increasingly decide to hire equipment rather than purchase outright. It is better-equipped to meet this increasing demand than many of its peers who have neglected their fleet in recent years. Although the overall market is likely to remain highly fragmented, we expect Sunbelt will benefit by improving its market share.

We do not feel that the market has fully appreciated either the structural growth story or the improvements made to Ashtead's operating model and believe the stock remains undervalued.

Ashtead
200.5p +5.1p
Scotsman says BUY

• This article is for information and discussion purposes and does not form a recommendation by the manager to invest or otherwise.

BROKER SNAPS

Snacktime
105p unch
Broker says BUY

David Lowery, an analyst at Faraday Research, said: "The business is modestly valued at six times earnings, and although in a very competitive industry, the unique Snacktime cost structure and operational advantages should see the group take up greater market share as the year progresses."

Weir Group
1,948p +37p
Broker says TOP PICK

RBC Capital Markets has upgraded Weir from "sector perform" to "top pick" and raised its target price by 25 per cent, from 1,800p to 2,250p. Analyst Andrew Carter said demand for Weir's oil and gas upstream products was strong, while manufacturing capacity had expanded more quickly than expected.

http://business.scotsman.com/business/One-to-watch-Ashtead.6766021.jp By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:SNAK.L&display=discussion&id=8233817&action=detail Wed, 11 May 2011 05:04:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.3856579 http://www.iii.co.uk/investment/detail?code=cotn:SNAK.L&display=discussion&id=3856579&action=detail Wed, 09 Jan 2008 15:22:00 GMT combo king tag:iii.co.uk,2003:tst.3850840 http://www.iii.co.uk/investment/detail?code=cotn:SNAK.L&display=discussion&id=3850840&action=detail Fri, 04 Jan 2008 16:01:00 GMT M Le Cauchemar