Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Tavernham,
By way of a contrasting view, I was really pleased with the report this morning and bought in more shares today such that Redrow is now more than 50% of my entire investment portfolio....
A return on equity of 16.3% ~ and in the current economic climate too ~ and reality check EPS of 90.2p by my calculation, being BVPS 612.2p plus divs paid in year 32p less BVPS b/f 554p.
This was comfortably above previous company guidance of 84p EPS and included allowing for a 10.3p per share cost to insure the defined benefits pension scheme, so would otherwise have been over 100p EPS, which would have been record earnings for the company.
Liabilities as a percentage of tangible balance sheet were down to 52%, and they haven’t been lower than that since the 47% of H1 2019.
Final div of 20p, not 18p as anticipated.
Guidance for 2024 EPS is 41p, but then Redrow has a very strong track record for under promising and over delivering, and this seems to always catch the scribblers out..?
This is in sharp contrast to Battersea ~ whom some may know by their “You can run but you just can’t hide” name of Vistry (reminds me of Hermes rebranding as Evri) who blew their half time whistle on Monday…..
Promise the earth but deliver Fanny Adams seems to be their motto ~ their book value has gone nowhere in the past twelve years while Bellway’s has tripled, yet Bellway sells at three quarters book and Battersea is twice that, so it somehow seems to work for them….?
All of the people some of the time, and all that, I suppose….?
I’ve been at this investment malarkey for more than twenty years, but it seems there are some things I’ll never understand…?
Anyway, DYOR, and all that fine stuff, and remember that if there weren’t both buyers & sellers on any day then there wouldn’t be a market, would there…?
GLA
Strictly
Perhaps the figures are not as bad as many had feared...
House builders are in for a difficult time in the short - medium term. Could be many years before interest rates start coming down again.
In response to poor figures!
Well I called that right a month ago, miracles do happen. Will continue to hold and buy more if it goes back to below 450 GLA
Just realised, it’s the reduction in inflation figures. Most builders have risen this morning.
RDW up 7.34% this morning. Anyone know why?
Https://www.lbc.co.uk/news/redrow-over-100-jobs-risk-one-of-uks-largest-housebuilding-companies/
LBC reports:
Redrow, which has seen profits slip in recent months, told some of its staff in a virtual conference call that their jobs were at risk
LBC has been passed emails and documents confirming, from the firm's chief executive, that they plan to close the Crawley and Thames Valley offices. The Crawley office is the company's base for Southern England.
The memo, sent to all staff, and leaked to LBC, said the current economic climate was having a negative impact on the homebuilding industry, and that as a result, the company was having to limit its investment in land.
The firm is one of the largest housebuilders in the UK employing more than 2,000 people across 14 sites. One employee told LBC at least 100 people were at risk of losing their jobs.
In a statement, confirming the proposal, Redrow said its current developments were unaffected, and that only a small number of staff would be made redundant.
Hi everyone. Have watched this like a hawk and wouldn’t surprise me if this falls further but for me this is a good price to buy. Thought I would start a chain here whilst all the chats are on PSN. GLA
6 consecutive down days.
https://www.kentonline.co.uk/medway/news/760-home-plan-submitted-for-village-285905/
So the markets didn’t like the results or already priced in?
Looking at Barratts results this should hopefully follow! GLA
Thanks Strictly, sorry for delay in replying. This seems to have settled recently and having visited a site I happened to be driving past on holiday, looks a solid bet to me. Confess I didn’t know RDW shares business with Taylor Wimpey, so will now do a read across to see how they fare, albeit out of curiosity as only want this as my housebuilder share. Looking forward to 2023
Following on from lenders forecasting 10-15% house price falls, RICS index turning negative and forecasting house price falls, repossessions are also rising, April 2022 onwards.
90% up from last year.
15% up on the quarter
Watch the demand decrease and supply increase
Mortgage repossessions up 90% as families warned of ‘ticking time bomb’
Rishi Sunak urged to act as landlord repossession claims also shoot up
https://www.independent.co.uk/news/business/mortgages-repossessions-landlord-evictions-rent-b2222207.html
Up 15% on the qtr:
House repossessions start to climb amid cost of living crisis: Properties taken back by banks rise 15% in three months as mortgage rates shoot up
https://www.thisismoney.co.uk/money/mortgageshome/article-11413579/House-repossessions-rise-15-three-months-amid-high-mortgage-rates.html
"can’t believe this board is so quiet"
Giraffe,
The share chat does seem to move around between the different house builder pages to some degree from time to time, so you may need to click around for that ~ to PSN, TW., BDEV, VTY & BWY....?
For me, Redrow is a top share, along with Bellway and now also, more recently, Persimmon...
I was substantially in Redrow until a recent move earlier this year into Bellway and, from there, I'm also now partially in Persimmon.
But there's only a few percent in it in terms of best perceived value so ~ like you it seems? ~ I am certainly intending to pay attention to tomorrow's update...!
Strictly
HI Sandgrounder, well firstly, I jumped in at £4.30 not £3.30…and the RNS incoming is obviously the results due tomorrow. Amazing jump up this week which bodes well for tomorrow despite media reporting house purchases are down / slowing etc. Even today, it opened 8 points down then did something of a super leap. Who know what tomorrow brings, probably stabilise at todays price because everything is now factored in but with this share, anything goes. I will make a wild guess and say results will highlight plenty of land still owned for development + sales booked for next year/18 months + RDW received a “best housebuilder” award of some type + projects/new builds all on track…would be nice to have more people joining in the chat, still can’t believe this board is so quiet, especially with their weeks increase. GLA
Thanks Sandgrounder, I agree, however, this week RDW has been trying to break higher, even when the overall market dipped, recovering from a 5 point loss to almost breaking even yesterday, when most of the rest fell. And today…we are happily jumping up
Have absolutely no idea why, but after weighing up the pros and cons with a friend at the golf club last night, including referencing your post about getting a business for nothing, I jumped in at £3.30 at the bell this morning. Goodness knows where this will end up, but having kept a very close eye on the price, I would not be at all surprised to see an RNS land next week
GLA
Markets are frequently illogical and it is entirely possible that these shares may drop further. But in the medium to long term they must surely be a very solid, safe buy. At last valuation in July net assets - almost entirely land, buildings and cash - amounted to 563p per share. I accept that with a recession looming and mortgage rates increasing it is highly likely that the value of Redrow's land bank and work in progress will fall, but it could fall by as much as 26% and today's share price would still be fully covered by the company's net assets alone. Which surely means that at this price you are effectively getting the future profits of a very successful and well established business for nothing.
Hi Citywatcher,
Thankyou for resurrecting this very quiet board. If you look back, you will see my previous posts where I confidently promote RDW and say why - am interested for your views for the best housebuilder share as see you have posted elsewhere.
Admit I sold at a loss during the last 6 months when this dropped and dropped and see it somehow fell below £4 when I didn’t buy in
Decision made, build a position now, as hopefully the government has calmed down somewhat and then watch it climb. Housebuilders have been under the radar with all the political fuss recently and with the stamp duty incentive and forecast of house prices falling, that’s not a bad thing
Let’s see if I have the nerve to stay in here if it falls again after I buy on monday…
Brokers have this hitting £7 at some point…
Maybe the upbeat post in today's CITY A.M. for Foxton's will boost Redrow's share price.
FOXTONS shares closed up almost 7% yesterday after it reported a 25% spike in revenue in the third quarter compared to 2021.
The British estate agent's overall intake came in at £43.8m for the three months to September compared to £35.1m last year in the same period. This driven by an increase in it's lettings , sales and financial service sectors, with a significant 44% increase in it's sales. It's lettings were up almost 20% too. Their financial services increased almost 40%.
The company said it was confident for the rest of the year.
Housebuilders should be happy reading this, recovery in the market will always affect them too of course.
In 2008 the likes of Barratts and TW were stuffed by £2bn net debt and significantly lower NAV per share. They were highly geared. They needed highly dilutive RI’s to survive.
Today it’s the opposite.
Also totally different market dynamics. Much great undersupply and WFH is transforming the market re demand for that extra space/improved home life amenities. And less commuting means more cash saved.
And let’s not forget the lure of new build energy saving measures. If house prices fall 10% new build will be 5%
And all this talk of 6% interest rates is nonsense, the deflationary effect of this current stock market crash plus falling house prices will flatten the curve
Finally there are still a load of people desperate to buy….
Depressed share price = share buy back programme hits harder so at least there's a little bit of positivity to all this.
In addition to here Manfor is on the BDEV & BWY boards spouting the exact same garbage.
So according to numpty brains it’s BWY @ £4, BDEV @ 80p & RDW @ £1 as his entry points. I could attempt to understand it if he posted valid reasons for his guesstimates but that’s just what they are, it takes all sorts I suppose & he is very entertaining.
Manfor, if you remember the 2008 crash you will remember it was caused by the financial institutions failing and just now we have more robust financial institions so any correction will be much smaller. IMV the sp of the housebuilders have built into them a couple of bad years of falling profits from falling house prices already so I am a buyer at these levels.