Worth noting that TW has good exposure to London, with its joint development at Chobham Manor Stratford, coming on stream imminently. Should drive good revenues going forward. Also, TW has set up a specialist division to specialise in London, albeit small specific opportunities. So, they are being careful, but should get boost from strong market in London. As for the market reaction to results. Markets misprice shares all the time, that's just the way it is. If it was not the case, how could we ever make any money ? This is a good investment opportunity, a little patience is required.
"Markets seem to have read the runes wrong when it comes to housebuilders. Taylor Wimpey is a case in point in that regard. There were no negative aspects to the firm's trading statement. There was no negative impact from the Mortgage Market Review. The prices of homes rose by 9% in the first six months of the year. Furthermore, total orders totalled £1.6bn by the close of the period, well above the £1.26bn seen in the previous year.
The company also has capital discipline and the wherewithal to maintain it. Taylor Wimpey will return another £200m to shareholders next year and it has approximately five and a half years' worth supply of land, so it need not buy now. Only 10% of its sales come from the south east, it has no exposure to the fragile London market and it is benefitting from the Treasury's Help-to-Buy scheme. On about 12 times earnings the stock is a long-term buy, writes The Times's Tempus. "
I believe it is a good point that TW is barely exposed to South East and not exposed to London. It seems to me, TW is tarnished with the same brush for something it is not really exposed to; the South/East and London potential bubble. I will hold for the generous forward dividend, low forward P/E and the fact TW constructs something where demand far outpaces supply.
I had 100k to put on this share.could make 10% profit every few weeks buying and selling.this share has heen so predictable this past year but unfortunately I haven't so I'm just in the waiting game for my £2 exit point.
Such a shame the market is pulling this share down, as a company its doing all the right things, delivering all good news, making growing profits. I will be topping up soon as imo it will come back nicely to the 1.20's.
Yeah and then the article goes on to say " traders taking profits given the rich valuation" clearly market is getting tiredly mr Redfern's steady as she goes jam tomorrow message . He was quick enough to stiff his shareholders when he and the company were about to get panned.
Analysts at house broker Jefferies - inspired by the World Cup - said: “At half time there is no nervousness or need for a strong pep talk from team boss Redfern. They have left Persimmon with a lot to do in the second half and we suspect that nerves on the Barratt bench are high.”
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