Secondary Recommendation

Weir Group - â€œPicks and shovelsâ€ play in oil mining boom

September 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In the past 12 months shares in Weir, which makes equipment and spare parts for the mining, minerals and oil & gas industries, had nearly doubled from Â£11 to Â£22 before pulling back quite sharply following further eruptions from the US and European debt crises. The sensitivity in the stock partly reflects the fact that its recent success, which has seen its earnings per share rise from 33p to an astonishing 100.4p in the past four years, has come about due to significantly increased capital expenditure by clients in emerging markets and the fear is that any major disruption to money markets might hurt confidence and cause a global slowdown. However, one investor's angst is another's opportunity and with Weir's first half order book ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Bayfield Energy - Founders of Burren Energy return with new oil & gas firm

ITE - Very strong Q3 trading

Weir - Shares hit all-time high (May 2014)

Weir - Good value on forward PE of 13.6 (October 2013)

Weir - Eps have risen 278% in five years (May 2013)

Weir (October 2012)

Weir (June 2012)

Weir - US$1bn loan note issue provides fire power for acquisitions (April 2012)

Weir (March 2012)

Weir - Equipment supplier to oil & gas and mining sectors sees eps rocket (January 2012)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X