littlekev, it's a tuff call whether the sp will drop more. ex-divi day tuesday - a drop here to the equivalent of the divi always happens but it can vary as a lot of people often sell after they have received their divi. Generally I see sp gaps down, rises up to fill the gap within the first hour to then fall for the rest of the day. Other negative I see for sp to drop is the sector has possible topped out and concerns being raised by talks of interest rises in the coming years, but this does not necessarily mean the sector has topped out yet as it could keep going for a year or two before the interest rate rise. The last negative has to be Blackrock reducing it's holding. Could they be intending to completely sell out? If so then yes the SP will drop further. On the plus side BDEV had excellent results and look to continue for the moment. Chart wise - BDEV has hit the bottom of a lovely bull trend line. It is looking at going into oversold territory in both RSI and Stochastic. The SP is also dropped down close to the 200 ema where you will often see a bounce from. http://www.chartupload.com/viewer.php?file=41181493451202836966.png So may drop to 350 or rise from here. To me it's a hold and wait to see if Blackrock are completely selling out. GLA
yes not been on the boards for sometime but still dealing just got back into bdev sold up sometime ago but could not get back in due to the sp just kept on rising but now it cant stop falling hoping it starts to pick up soon but has I said think it will go nearer 3 50 before it starts to climb GLA..........
Have faith in BDEV. Current SP reflects: Profit taking at end of financial year Shorters looking to maximise this short term bear market General FTSE movement, particularly the Ukraine situation Fear of interest rate rises to cool housing “boom” BDEV declared on 27 Feb (1/2 year statement, compared with Dec 2013), that: ROCE is up 14.2% Revenue is up 33% Profit is up 73% EPS at 9.5p is up 179% Forward sales to Feb 23 2014 are up 56.2% Divi is 2 years ahead of target at 3.3p per share P/E is only 25 which is low for the industry, and PEG is a safe 0.31 Barratt is very successfully driving sales and profit from a well funded base. I have known this company since 1970. There is no other UK housing developer with more experience in this market. Having survived the 2008-9 crisis they are probably the best placed developer to grow quickly within the current optimistic housing market. They have a significant land bank, excellent cast flow and very experienced/skilled management teams throughout the UK Only external interference may slow projected growth in EPS. My view is that external interference (changes to Help to Buy…which is guaranteed until March 2020……..or increased mortgage costs) is unlikely before the next election. BDEV shares are cheap at present and provide a good buying opportunity for at least 12 months.
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