10% is enough for me. i will leave the rest of you to make the big bucks.
Liberalman - cheers mate! i would never have known without you. Have a look at SASOL ADR. Energy player in South Africa that i believe is undervalued. i confess i though they were undervalued when they were 5% higher than they are now so there is the possibility the market knows something i don't. as always dyor.
I don't think Pidgeley is that machiavellian (spelling!) tbh. Don't forget they've got some other excellent people in that business - Perrin being one of them. They've got an excellent land bank, they're not buying land at the moment (but are just biding their time), build an excellent product - they're a good outfit imo. It's a quality company buying land within the M25. I'd rather be within the M25 than out of it I'm afraid (sorry if that offends people).
Not good and stinks of a mechanism to allow Tony Pidgeley to cash out now that he is nearing retirement. This is near to if not the peak of market and he knows it and it would cause panic if he sold, but with a buy back he can manipulate the price he gets. I might be wrong.
Today's RNS not good on this front. They will no longer pay back 200p a share all as dividends, but utilise some of that in share buybacks. And next divi payment in March. Plonkers don't help themselves.
"Berkeley Group is expected to report healthy growth in first half earnings on Friday as the property developer benefits from continued high demand and margins.
Deutsche Bank expects nominalised pre-tax profit to jump 45.2% to £351.7m compared to the same period a year earlier on a 21.9% increase in revenue to £1.31bn. However, the number of completions is forecast to drop 10.3% to 1,875.
The bank said: "The investment case for Berkeley remains complex, juggling the value of more than a 8% yield, against a business which is peaking in the coming two years (pre-tax profit declining from fiscal year 2019 reflecting the mix of its build), but with management guiding to longer term return on equity of 20%. For us, the earnings potential remains undervalued: Buy."
While the uncertainty of Brexit is unlikely to support domestic demand in the property market, Deutsche Bank believes a weaker pound will attract overseas buyers.
About 40% of Berkeley's customers are from abroad.
In a trading statement in September, Berkeley reiterated its guidance for £2bn of pre-tax profit over the three-year period ending on 30 April 2018, supported by record cash due on forward sales of £3.25bn and future estimated land bank gross margin of £6.15bn."
I'm with you there danan... I tend to discount individual broker views as well, but when the consensus is so strong... especially 'strong buys' being so rare... I've looked at this one... high value homes and strong London focus... hence the negative sentiment. But they've confirmed 200p to be paid back to shareholders over next few years. Low P/e 8x, High yield 8%, not overburdened with debt,.. I think they'll surprise the market over the next year.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.