Two FTSE 250 stocks under discussion: Centamin Plc and Go-Ahead Group PLC

Two FTSE 250 stocks under discussion: Centamin Plc and Go-Ahead Group PLC

Centamin PLC (LON: CEY)

Mineral exploration, development and mining company, Centamin Plc is into the business of production and exploration of precious metals. The Sukari Gold Mine (SGM) which is its principal asset is jointly owned by Egyptian Mineral Resource Authority (EMRA) and Pharaoh Gold Mines (PGM).

CEY-Recent news

London-listed Centamin Plc has rejected a buyout proposal amounting to £1.47 billion offered by Endeavour Mining Corp (Canada). According to the proposal, for each Centamin share, 0.0846 of Endeavour’s shares were to be exchanged. Alternatively, Centamin shares could be bought at a premium of 13 per cent amounting to 126.27 pence per share. The company rejected the proposal as it felt that Endeavour’s shareholders would benefit more in comparison to the company’s shareholders, and the proposal does not factor the real contribution of the company in the merged entity.

On the contrary, Centamin Plc is well poised to generate better returns to shareholders in comparison to the merged entity. The management also believe that the merged entity would have significantly higher financial and operating risks without any real benefits to the shareholders.

CEY-Third Quarter highlights FY2019

The company released a report for the third quarter ended 30th September 2019 on 23rd October 2019. The group reported Gold production of 98,045 oz. from the Sukari Gold Mine in the third quarter of fiscal year 2019, taking the total production for the nine months (YTD time frame) in the fiscal year 2019 at 332,141 oz.

The group reported a gross revenue at US $160.8 million from 108,826 oz by achieving good sales numbers (gold), at an average gold price of US$ 1,478 per oz during the third quarter of fiscal year 2019. The net cash of the company generated from operations by the end of the period was recorded at USD 39.2 million.

The total expenditure of the company including capex and exploration expense was lower than the budget forecasted for the third quarter, was recorded at USD 85.7 million on YTD basis and stood at USD27.3 million for Q3 FY19.

 

CEY-Stock price performance

Daily Chart on London Stock Exchange as at Dec-04-19, before the market close (Source: Thomson Reuters)

At the time of writing (before the market close, on 4 December 2019 at 12:22 PM GMT), shares of the Centamin PLC were trading on the London Stock Exchange at GBX 129.15 and increased by 0.27 per cent against the previous day closing price. The shares of the company got admission for trading on the Alternative Investment Market of the London Stock Exchange on 30th December 2011. The total M-cap (market capitalisation) of the company stood at £1.48 billion with an annual dividend yield of 5.12 per cent.

Daily Traded Volume Summary

The 5-day average daily traded shares, which exchanged hands were recorded at 6,025,218.80, which was approximately 26.09 per cent more than the 30-day average daily traded shares, which exchanged hands at the LSE (London Stock Exchange). At the time of writing, before the market close, today’s traded volume of the shares of the company was around 4,668,292 and number of trades executed stood at 1,929 at the LSE (London Stock Exchange).

52-week High/Low range

In the past 52 weeks, shares of the Centamin PLC have hovered between a high price level of GBX 154.75 (as on 28th August 2019) and a low-price level of GBX 79.14 (as on 18th April 2019). At the current level of trading, as quoted in the price chart, shares traded around 16.54 per cent below the 52-week high and were 63.19 per cent above the 52-week low.

Price Performance (in percentage)

The shares of the Centamin PLC have delivered a positive price return of 26.77 per cent on a Year on Year (YoY) basis and has outperformed the benchmark index, as the benchmark index gave 25.07 per cent positive return over the same period. However, the stock has given a positive price return of approximately 18.38 per cent on a year-to-date (YTD) time frame and was up by approximately 9.11 per cent in the last one month.

Simple Moving Average (SMA)

From the Simple Moving Average standpoint, shares traded above the 200-day simple moving average price. Also, the shares traded above its 60-day and 30-day SMA prices.

Relative Strength Index (RSI)

The RSI indicator for the shares of the company for the 3-days, 9-days and 14-days was recorded at 93.65, 78.25 and 70.18, respectively. Also, the stock’s 30-days RSI was recorded at 58.71.

Go-Ahead Group PLC (LON: GOG)

United Kingdom based public passenger transport company; Go-Ahead Group plc operates rail and bus services globally. The company has three divisions, namely, London and international bus, regional bus and rail. The regional bus division has operations outside of London. Bus operations in London, Singapore and Dublin are serviced by the London and international bus division. Train franchises tendered by transport authorities in the United Kingdom, Germany and Norway are serviced by the rail division.

GOG-Trading Update for the period from 30 June 2019 to 27th November 2019

The company’s revenue growth rates (on like for like basis) surged by 2.5 per cent and passenger journey growth rates also surged by 0.5 per cent in the regional bus segment on Year to Date (YTD) basis.

The revenue growth rates surged by 8 per cent, mileage growth rates surged by 4 per cent, and peak vehicle requirement (PVR) growth rates surged by 4.5 per cent at YTD like for like basis in London and international bus division. New contracts of the company in London reflects strong revenue growth.

In a transport business, punctuality is highly valued and is of prime importance. The business of the company delivered strong performance with good punctuality levels. Singapore and Ireland operations continued to perform well, in line with expectations.

The overall expectations remain same as earlier, with a decent performance in the United Kingdom countering a challenging operational start in the rail division by two new German rail contracts. The company operational performance continues to benefit from the substantial enhancements delivered over the last one and a half year, and the franchise is now contributing to the company’s profitability in Govia Thameslink Railway (GTR). In October 2019, the company introduced new fleet which included 1,500 carriages.

The company will announce the half-year results for the six-month period ending 28 December 2019 on 12th March 2020.

GOG-Stock price performance

Daily Chart as at Dec-04-19 on London Stock Exchange, before the market close (Source: Thomson Reuters)

At the time of writing (before the market close on 4 December 2019, at 12:29 PM GMT), shares of the Go-Ahead Group PLC were trading on the London Stock Exchange at GBX 1,969.00 and decreased by 2.42 per cent against the previous day closing price. The shares of the company got admission for trading on the Alternative Investment Market of the London Stock Exchange on 09th May 1994. The total M-cap (market capitalisation) of the company stood at £871.31 million with an annual dividend yield of 5.06 per cent.

Daily Traded Volume Summary

The 5-day average daily traded shares, which exchanged hands were recorded at 131,978.80, which was approximately 12.42 per cent less than the 30-day average daily traded shares, which exchanged hands at the LSE (London Stock Exchange). At the time of writing, before the market close, today’s traded volume of the shares of the company was around 72,581 and number of trades executed stood at 782 at the LSE (London Stock Exchange).

52-week High/Low range

In the past 52 weeks, shares of the Go-Ahead Group PLC have hovered between a high price level of GBX 2,308.91 (as on 22nd November 2019) and a low-price level of GBX 1,480.00 (as on 27th December 2018). At the current level of trading, as quoted in the price chart, shares traded around 14.72 per cent below the 52-week high and were 33.04 per cent above the 52-week low.

Price Performance (in percentage)

The shares of the Go-Ahead Group PLC have delivered a positive price return of 22.90 per cent on a Year on Year (YoY) basis and has outperformed the benchmark index, as the benchmark index gave 21.24 per cent positive return over the same period. However, the stock has given a positive price return of approximately 32.07 per cent on a year-to-date (YTD) time frame and was down by approximately 0.69 per cent in the last one month.

Simple Moving Average (SMA)

From the Simple Moving Average standpoint, shares traded below the 200-day simple moving average price. Also, the shares traded below its 60-day and 30-day SMA prices.

Relative Strength Index (RSI)

The RSI indicator for the shares of the company for the 3-days, 9-days and 14-days was recorded at 10.52, 32.10 and 39.08, respectively. Also, the stock’s 30-days RSI was recorded at 45.99.

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