Strong rise here today, very pleasing indeed, wiping out some of the valuation anomaly we identified last friday as the market appears to have finally caught onto this cheapest in sector stock. Still looks like the best value though at these levels and should be back to £4.40-£4.50 to be a fairer valuation at this point int time at least- still may need an update to get back on level terms with sector peers. Crest really has been pulling strongly.
Hi Josh I have a completely different system of analysis from you, because I look for growth rather than value. You proclaim rdw as best value followed by bvs and crst. My system based on guessing the future EpsG and justifiable Peg, puts rdw top followed by bdev and gfrd. Gfrd, crst, bkgh & bvs I mark down cos of London (dirty money) effect. My calcs show bvs as being overvalued anyway! Imho both rdw and bdev are well undervalued, so have a look at bdev, who have drifted like… Read More
Good rise above £4 today but Redrow now lagging significantly. Bovis and Crest have both flown past Redrow on three year forward average metrics. Current three year average dividend yield adjusted P/E's are:
Crest: 6.8x Bovis 6.5x Redrow 6.2x
All other builders are not really worth mentioning from a value perspective as they are rated at a significantly higher premium than the above three when factoring in earnings, dividends and growth prospects over the next three years. TEF for… Read More
If the Govt stops this money laundering, the market for the most expensive housing in London will collapse. This is bound to have a knock on effect down the ladder, which could affect bkgh, crst and to a lesser extent rdw and bvs. Josh No news is bad news. All builders except rdw, improving today. Another reason for rdw falling back (in comparison with other Builders) is that they are holding on to their profits, as opposed to increasing divis. This gives them the potential to increase… Read More
I also agree that a quick note too all on the business would keep investors in the company in a happier frame of mind. RDW also mentioned years ago that after spending their profit on the business that they would start to pay a dividend that was EPS/3. I think that that statement must be nearing that point in the housing cycle.
"We do not issue an IMS in April. We stopped doing so when the rules changed such that they are no longer required. We will update the market if and when required. Other than that we will be announcing our results in early September".
Feb to Sept is far long to wait without newsflow and until RDW pull their finger out and issue an update I think RDW will continue to lag.
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