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.
I’m slowly buying back in to BDEV. In a couple of years or maybe as soon as the end of 2023 this will be seen as a bargain. The share buy backs are preserving the price, there’s a decent divi that will be back to normal in 2024 plus the chance of a special divi for those who, stood by the company. I don’t buy into doom and gloom where property and the desire to own your own is concerned. DYOR.
Strictly
Thanks. Have joined and e mailed you with a link to timber frames!
Regards
Crossley,
Thanks for the heads-up on that.... I just googled for a link, in case anyone else is interested, and here it is below:
https://www.housingtoday.co.uk/news/barratt-to-open-45m-timber-frame-factory/5122111.article
That now makes for all three FTSE100 boys in the game of timber frames, as Persimmon have had this on the go for some while and recently joined by Taylor Wimps…
And now Barratt, it seems…
Persimmon, being the folk with the experience, have said that producing their own off-site timber frames can reduce build time by around 8 weeks (at least, that’s what I recall they’ve said..?) which seems a pretty big deal to me…
Separately, I didn’t hear back from you re the blog… if you’ve had a change of heart about that then no worries, but if you’ve had difficulty signing up for it then just let me know…?
Strictly
Britain’s biggest housebuilder Barratt is to open a £45m timber frame factory to build more homes off site and meet the 2025 Future Homes Standard.
The firm believes the factory will help it reach its commitment of becoming carbon neutral by 2030, by which time it wants 30% of its homes to be built using modern methods of construction.
The company bought the timber manufacturer Oregon in 2019 and will relocate it this summer from Burton-upon-Trent to the just completed 186,000 square foot facility, which it says is “cutting-edge”, at Infinity Park in Derby.
Agreed Krusty, everyone knows that there is a continuing housing shortage in most of UK and I see that Halifax has just reported that price increases are still averaging over 2%; what sort of downturn is that?
Pompous oaf.
"We are witnessing one of the worst downturns in housing demand in decades, combined with the highest interest rates since 2008 which puts enormous pressure on the existing interest repayments for all housebuilders for the land that they still own."
I've challenged him several times, across the different hb boards, to name a housebuilder that has borrowed money to buy land. He hasn't responded because, of course, there aren't any - they're all buying land with cash in hand.
I don't know (or care) what his motivation is, but I'll keep calling out his lies in the hope that everyone will see through him. K
Better get your short on if you have not already!
The immediate recent results and the increase of the dividend (especially the latter) can get people excited. BDEV and PSN did not have that luck. Barring any substantial macroeconomic news, I suspect that in 1-4 days the reality of the housing market will come back to weigh on the sentiment.
On similar doom forecast as psn, has gone up today. Funny old game.
There is no doubt that demand has dropped and will subsequently impact earning and profits, in the coming year or so. BDV have little debt, plenty of cash and are cutting back on capital purchases. The key questions for me are how long will demand be depressed, will inflation be controlled, can margins be maintained and how much is priced into the current SP. I think most priced in however SP may have a bumpy ride in next 3 to 6 months until the demand issue becomes clearer.
The "head in the sand" approach of the vast majority of posters on this board and that of the other UK housebuilders is typical of many PIs, trying to turn into a positive spin forecasts of minus 30 to 40% of completions.
We are witnessing one of the worst downturns in housing demand in decades, combined with the highest interest rates since 2008 which puts enormous pressure on the existing interest repayments for all housebuilders for the land that they still own.
Yet people still splutter "fundamentals are goods"!... Absolutely insane.
Today's Persimmon results were much more honest..
Pretty good interims under the circumstances. Dividend down from 11.2 to 10.2 but that's far better than I expected. Some signs of improved footfall too, which is really encouraging.
Better than I feared but I expect sp will fall a few % because of interest rate outlook.
After results this morning, nearer £4 IMHO.
Steady as she goes, back to £6. This year.
Two questions for the board. One serious the other slightly cynical? - you decide.
1. Do any of you have access to information about what costs will accrue to BDEV as a result of the "Michael Gove Fire Safety Costs Deal" AKA Cladding agreement.
2. Is there a sweepstake yet available on how many of MG's mates have their snouts in his 10 year trough?
BSABANTAM
Bsa, Just to say that have been messing about in the stock markets on and off for years and have no explanation for some of the things people do and say which defy logic, here is a great example:- When Boris's covid panic broke out a whole load of people sold lots of perfectly good shares such that their prices fell seriously. What difference those people imagined having a pile of cash instead of a bag of shares would make to the covid panic I have no idea. No.1 son who is still learning but thinks well decides to buy a bunch of LLoyds for around 30p "because they are so cheap Dad, it can't be right". He is of course absolutely correct and here we are nearly three years later and his little too cheap investment has made well over 60%. As Warren Buffet has often said, don't ever do what the rest of the idiots do in when rest of the market is in a panic. So we have remarks being made that builders will suffer because there is a recession - sounds right but in fact, people hardly ever stop buying new houses.
@strictlybricks and @eccles04. Thank you for the replies. I can see how these transactions could be good or not so good. As usual it appears to be about the details. I bought BDEV before Christmas alongside Persimmon and HSBC. All well up at the moment, but I now wish I had weighted more to BDEV. Fingers crossed for the housing market in 2023.....
BSA,
Shares can be bought back by a company either to hold as treasury shares or to be cancelled and so reduce the number of shares in issue....
The upside of buying back shares with spare cashflow over and above paying it out in dividend is that the latter is a one time moment of joy for shareholders but then it passes.
Whereas, reducing the shares in issue by going for share buyback is the gift that keeps on giving as it continues thereafter to give enhanced EPS for any given amount of profit.
The usual downside of share buybacks is when they are undertaken at PBVs of above 1.0, which means a reduction in the book value per share ~ take a look at Next shares…
Next seem to have been addicted to share buybacks in the past and yes, it shows in the EPS but then take a close butcher’s at the BVPS over a number of shares and compare that to the growth of, say, Redrow shares, which are for sale at a mere fraction of the value of Next ~ which just goes to show it takes all sorts…!
Whereas, at the prices Barratt have bought their shares back, this is at less than book value so undertaking this not only enhances future EPS it also enhances BVPS.
The risk of course is that they overdo it on the basis that “It seemed like a good idea at the time” but that in six months’ time, if the sh.tstorm we’re going through gets worse (even though the signals from falling mortgage rates and updates from builders over the past week or so including Crest today bode well at this very early stage), they might regret not having kept their powder dry….?
But it does all feel a bit more positive out there even compared with just a few weeks ago…
All the same, it would be good if they could all settle finally with Gove, though, wouldn’t it..?
Strictly
Hi BSA, first you need to understand that these are capital transactions and therefore they would not would not account for any "profit" in the profit and loss account which only concerns revenue transactions or impairments of assets. Usually such "differences" are added to the share premium account which is not allowed to be used for dividends without special permission from the Court to whom the company would apply. Oddly enough such an action was carried out by one of my other investments last year and I received a special div as a result, woo hoo! Of course buy backs result in less shares out there to receive divs so all things being equal shareholders get a better yield or the market value increases, sometimes both woo hoo again.
I have been following this board for some months having bought a few shares in late summer 2022, on the basis of the cash position of BDev and the clear need for housing additions in the UK. (i.e. It was just a matter of time before house sales would restart and the company could ride out any downturn IMO)
Then I noticed the share buybacks. The latest round finished in December. BDev bought back 12.7 m shares for a consideration of £49.2m. Average price was £3.87 per share. Today's price is £4.62. So that's a profit of 19.5%. This seems like a good thing but I don't understand how BDev accounts for this in their results?
As is often the case alck of sales in Nov, Dec means nothing except that folk prefer to move house after Christmas instead of before. Back in the 70's we saw some horrendous interest rates and inflation but peopel still insisted on buying houses whenever they could (I was one of those buyers) because they knew that almost any house they bought would be more expensive next year. This phenomenum is still happening because there are still not enough houses to buy in the UK. So if you sold Barratt or Persimmon back in December you were wrong as I advised at the time.
Started to build new HB portfolio with Barratt D.
Will continue to add as I do not see a house price crash in 2023/24.
In my opinion only ...gla
Relax boys just a matter of time SP is surging along with Persimmion back where they both belong
Interest rates dropping
Never mind £5 expect this back at £6 in short order