US fund manager buys €112m stake in Kingspan

Interesting that an international fund manager should see some value in Kingspan. Does anyone think that this chap might be onto something?

No doubt the VI journalists have the article written already in time for this evening’s bulletins. Quick! Scrap that €X billion wiped off the ISEQ today, Kingspan snapped up for €112 million, a sign of restored confidence in the Irish construction industry. And here in studio, we have Tom Parlon. Thank you for gracing us all with your presence.

Kingspan down 3.7% so it’s hardly been interpreted as a massive vote of confidence.

The buyer, Capital Research is also the second biggest shareholder of Countrywide Financial.

Kingspan’s share price at the moment is being dictated by world market volatility and more specifically ISEQ volatility. OK the had a profit warning too, but I think there market segment is solid enough.

They are at the forefront of modern insulated building materials. Most of their market is outside of Ireland, similar to CRH. In the long term, with high energy prices, there is likely to be good demand and growth in the areas they are involved. You definitely have to look at Kingspan separate to the collapse in Irish construction. I believe there is definitely money to be made in investing in Kingspan in the medium to long term. In fact CRH and Kingspan are 2 companies that myself and a friend have been discussing over the last couple of months. In investing terms, Kingspan are comparable to renewable energy companies which are traditionally very volatile.

Having said that I wouldn’t be looking to catch a falling knife at the moment. But then I’m not an international fund manager with €112m that needs to be put somewhere non $ denominated. If I had €20k cash that I was looking to do something with and I didn’t want to access it for at least 5 years I might just put it into Kingspan.

people might not think of insulation companies as ‘green energy sector’ but i think that with a more and more energy concious society that Kingspan might have a long way to go yet.

I know that some alternative energy funds are doing really well but whats the point of all that energy if you can’t keep the heat/cold in! 17% of energy use in the world goes on light and i think heat/air conditioning is not far off that mark.

One of the best ways to conserve energy is to use less and one of the simple ways to use less is good insulation.