http://www.lse.co.uk/AllNews.asp?code=9wyg8t6y&headline=Housebuilder_Crest_Nicholson_Bullish_As_It_Continues_To_Trade_Well "minimum hurdle rate returns on capital employed in the range of 22-24%" This is a profitable company with no Scottish exposure either, looks very good value at these levels, P/E is a mystery.
major negative reaction
As I type this market price 315 down 6.5% following this mornings IMS. The IMS was pretty uninspiring. Confirms 15% increase in volume for the year but reports next year sales levels down on last year - apparently down to strategy change of selling later in the build process - but this has clearly spooked the market. Given a 15% increase in volume and a net margin maintained at 18.5% this looks like a EPS for the year of 34p - 35p, up from 29p last year - + 17% to 20% yoy. The problem with the stock seems to be the P/E which at the current share price is barely over 10 and continues to be significantly out of line with the rest of the sector.
Todays numbers from rightmove show property asking prices rising 0.9% in September when they typical fall due to holiday season. Further clear evidence that the housing market remains sound
RE: same again
Yes this has underperformed for a while now but I am going to stick with it, it will rerate at some stage, fingers crossed!
Despite the sector rising strongly Crest seems unresponsive. Lets hope next weeks IMS is strong
doesn't look encouraging
Looks to me like this market isn't going to regain the confidence required to push back up to £4 anytime soon
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