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Deutsche target 835p buy, UBS target 427 buy ......what hope have we got if they don't have a clue !!!!
Thanks fellow posters for your ongoing insightful comments on here & other LSE boards. Strictly, like you I live on high, almost 900 feet above sea level on the beautiful Quantock hills, I’ve always loved Dartmoor since visiting on a London school visit in the early 1970’s.
Enough reminiscing I would be grateful for any opinions about house builder Vistry, the man in charge over there is certainly up beat as he’s spending large amounts buying his own company shares at the moment, good to see. Thanks in advance.
"Looking on the Stockopedia ratings to these companies I wandered if you had any views on their “Rankings” of these stocks? I know you favour BWY although they seem to lean towards TW and rate Bdev the weakest. "
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Tim,
To be honest, I don't really pay any attention to what the scribblers have to say..... being cynical about both their motives & their competence, I prefer to use Mathew 7.16 as my guide (I'm not religious, BTW, but I'll still leave you to look that one up?).
Bellway is affectionately known as "Ghost Dog" in our circle (and that's intended as a compliment to them..... another thing to check out, maybe, if you're not familiar with the film of the same name?).
Go back 40 years... Bellway have averaged a return on equity of around 16% over that time... they were the only house builder of note to keep paying a dividend throughout the credit crunch.
By contrast, Barratt nearly went broke twice during that 40 years, and Taylor Wimps also nearly went belly-up due to the credit crunch and have yet to fully recover.
Yet, on a PBV basis, Bellway are cheaper than both ~ that’s what I mean by Ghost Dog…
Tim, I obviously don't know how long you've been in this investing malarkey but, for me, it's now over 22 years ~ and it's given me a good living over that time and, for nearly all of that, investing has been my sole source of income apart from an OAP in recent years...?
But if, like me, you're only interested in a very few companies ~and for me that's about half a dozen at most ~ it's surely worth digging as far back as you can into each of those companies' figures on their websites to form your own view..?
I have no idea how good, or otherwise, said scribblers are, but if they're on a level with the financial journalists writing in the Telegraph on-line (where I post an occasional comment under the moniker Gunga Din, usually in response to, or in support of, a prominent & sometimes controversial commenter there who goes by the handle of Bogdan and who thoughts expressed there, in my view, are well worth reading) then that wouldn't be much of a commendation.
I don’t know how far back you’ve read on my stuff here on LSE…?
You no doubt know that you can click on any poster’s name and scroll right back through their stuff… I tend to comment here in fits and starts, often when it’s peeing with rain here (I live 1,000 feet up on Dartmoor, so we get a fair bit of dampness…) so I’m not getting out for a walk or a paddle…
And, as ever, DYOR and all that fine stuff….
Strictly
"BDEV - 2008 crash we saw 23p yes 23p a share.
High of £8.90 12yr later. 37x upside!!!!
Persimmon - 2008 crash £1.80 2020 high £33.20 18x
TW - 2008 Crash 4p 2020 high £2.37 59x
£10k in TW in 2008 recession sees you with £600k + "
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Indigo,
The difference between Persimmon, on the one hand, and Barratt & Taylor Wimps, on the other, is that Persimmon had to do a 20% plus write down on their landbank which, okay, was painful enough.
However, Barratt & Wimps were under existential threat as they'd seriously gone Pete Tong with their balance sheets in respect of far too much leverage, and each had to undertake a serious rights issue in order to survive.
If either of them hadn't got their rights issues away ~ and it certainly wasn't a given back then considering the state the economy was in ~ then they would have likely gone belly-up, and the 23p, or 4p, invested in each of then respectively would have no doubt gone to ratsh.it once the banks and secured creditors had been there first....
And I speak as a past sinner in respect of Barratt ~ though fortunately I had baled out of them and into other housebuilder shares well before the bottom, it was still a very painful financial experience for me, having to sell the family home in order to swerve having to cash in any shares at stupidly cheap prices...
It was a happy outcome in the end, mind, so I have no regrets about all that given how house builder shares have performed since... :-)
Strictly
Done some fact finding earlier on previous highs and lows within the house builder stocks.
I found
BDEV - 2008 crash we saw 23p yes 23p a share.
High of £8.90 12yr later. 37x upside!!!!
Persimmon - 2008 crash £1.80 2020 high £33.20 18x
TW - 2008 Crash 4p 2020 high £2.37 59x
£10k in TW in 2008 recession sees you with £600k +
Amazing what money is made when prices drop. I don’t think we will see these gifts of prices but the lower the drop the more I will buy. Strong balance sheet here, will be brought into heavy if we are gifted anymore. The big house builders have a demand they can’t keep up with. The maternity wards in the SE England are only getting busier and I guess this is the case across the country.
Property market may slow up with rising rates and inflation etc but this is a cycle and it will only go back up one way!
Great LTH here IMO
As already answered 25.7p dividend is highly thought off, but they posted robust results, and there is still time to ensure registration pre 30th September. £ 128-50 per every 500 shares. Terrific yield. Payment around 4th Nov. So time to hoover up some more I say.
"As Bdev have a ROCE of 30%, why would they want to do a buyback?"
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schwee,
Bear in mind that Barratt shares are currently selling at below book value...
Okay, only slightly, at a PBV of 0.93.
Imagine an extreme theoretical example, though....
Suppose Barratt shares were selling at only 4p...
Every 4p of spare cash spent buying back its own shares would buy over £4 of book value.....
And my calculation says that Barratt made a return on equity of 18.7% last year.
So that would be 74.8p earnings on £4 of book value.
And if that £4 of book value purchased cost only 4p, that would be a 1,870% return on cash spent...
And counting, of course, as that's only year one...
Of course, the actual situation is not one in extremis like that...
But I'd still rate it as a pretty good use of cash ~ compared to a company like Next, for example, that has bought its own shares back over the years at a seriously high price to book.
Of course, if Barratt continue to buy back their own shares on a price that rises above book value per share, as the price continues upwards I would say that your question would become ever more valid...?
But, at this level, way to go...!
Strictly
I have ROCE of 13.6 2021..TTM @ 13.4?
As Bdev have a ROCE of 30%, why would they want to do a buyback?
TimV - As you ask mate (as posted yesterday on the LSE BWY discussion board) I parted with just over 20K of my hard earned buying 5K's worth each of BWY, BDEV, PSN & RDW. The heavy drop in this sector I feel is a little overdone so why not.
My purchases have a combined yearly dividend of 8.6% at my buy prices, propped up considerably by PSN's huge dividend.
I'm up a little on these as I type here but as I'm a buy & hold investor that really doesn't make much difference to my overall strategy. I need to have the dividends to fund my real ale & motorcycle obsessions, the rest of my income I just waste!!
Thanks TomJones2 Just check the site that you mention, Interesting
Its .co.uk
search dividenddata ,its has all the info you need
Gary59. For all es. div and. payment. dates. see. dividend data.com. Everything. is. there
Excellent thanks Tom, for my future reference where did you see this?
XD is 29th Sept, payday is 4th Nov
A good final, anyone have any idea on the XD & pay dates?
I can't seem to find these anywhere, thanks.
Yep according to the news 25.7 and it's the final div
Buybacks verus high inflation, recession fears doubt it ..... are these good value and a buy.... think thats what your pondering
Cheers. These shares have been hammered and I am glad investors are getting a decent return via dividend. Will the buy back be beneficial to holders as I dont know much about it buy backs ?
Interim 11.2p
Thanks how much is the interim ?
25.7p per share I think. On top of the interim dividend. Hard to believe the sp has dropped. Certainly nothing to do with the results!
Share buyback normal when sp depressed. Your comment makes little sense. Running a business is rather more involved than following a single mantra.
What's the dividend amount please ?