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Underlying earnings per share rose by 19.9% to 420.8p(2021 - 350.9p, 2020 - 204.3p).
NAV rose by 2.4% to 2,727p (2021 - 2,664p, 2020 - 2,427p)
total proposed dividend to 140.0p per share (2021 - 117.5p, 2020 - 50.0p), an increase of 19.1%.
"Our strong balance sheet and record land bank also provides us with the strategic flexibility and agility to respond to any material changes in market conditions as a result of the current backdrop of economic uncertainty. "
But that doesn’t mean home builder stocks, which are largely down roughly 50% will necessarily suffer, significant negativity already priced into the stocks.
It's actually 100,000 per month that are experiencing coming to the end of their fixed rate deal. I make that 1.2 million per year.
Check the facts if you want!
Hundreds of thousands of British homeowners about to see monthly mortgage payments soar in the coming months. Fixed interest deals expire on millions mortgages in the second half of this year and through next year.
House prices likely to drop and the builders may have to write down their asset values next year imo.
Morning Ladies/Gents
Would someone be able to help please?
As a rule of thumb, how are a HB costs broken down?
Plot costs, labour costs and material costs
Thanks in Advance
Sympathy for Manor!
He's just a de-ramper or if not takes quite a few drugs, no sympathy here give the drugs up mate or stop your pointless de-ramping. Up 6.52% as I type.
Well heaven help the rest if the bellwether of housebuilders hits £4
£4??? Oh, I have sympathy for him alright. Poor chap.
You have to feel a little sympathy for manfor who has been caught in the crossfire in the game of shoot the messenger The SP hitting new lows on a daily basis and possibly might be threatening 1600 by the end of the week .
Hopefully the mortgage products will be freely available again by then Maybe some acquistion opportunities will be appearing for the mighty oak Bellway during the next few months
lenders Virgin Money, Halifax and Skipton Building Society pulled some of their mortgage deals to customers after the tumult in British bond markets.
Virgin Money and Skipton Building Society temporarily paused mortgage offers for new customers, while Halifax is planning to halt any mortgage products with fees where lower interest rates are usually offered.
In addition to here Manfor is on the BDEV & RDW boards spouting the exact same garbage and that they will all be dropping considerably.
So according to numpty brains it’s BWY @ £4, BDEV @ 80p & RDW @ £1 as his entry points. I could attempt to understand it if he posted valid reasons for his guesstimates but that’s just what they are, it takes all sorts I suppose & he is very entertaining.
@Manfor What are you smoking?
I do not hold any housebuilders now but I do remember what happened in 2008 and so I know what can happen when the housing cycle turns. The top of the housing cycle has clearly been reached now.
I am sure that I am as well informed as the other posters here. I was also not aware that the discussion here was only for people who think housebuilder shares are going to rise. Where does it say this?
I still think that housebuilders profits will collapse over the next five years, and any dividends will be greatly reduced or stopped completely. When the UK housing cycle has reached the bottom in about five years, I would be quite interested in buying housebuilders.
My entry price target for Bellway is the 2008 low of £4.
manor - Do you actually hold any house builder shares or do you feel that it is necessary to post negatively for some other reason? Everyone is entitled to their own opinion of course but please do a little research before you post what you are posting, it just makes you sound so ill informed.
manfor: It's been said on other Housebuilder BB's (on which you have cut and paste the comment below) - you're getting very, very boring.
The high dividends on the housebuilders will not last for long.
When the housing cycle starts to fall next year, housebuilder profits will fall and dividends will be greatly reduced or even stopped.
I now own VTY as well & I am so far very happy with my 5 HB buys, a long time investor here holding for the dividends & hoping for SP rises. No-one else will keep Mrs G supplied with her gin & exotic holidays!
I didn't do as well as DM who brought BWY at 18.68 last Friday but this morning I parted with just over 20K of my hard earned buying 5K's worth of BWY, BDEV, PSN & RDW.
This lot have a combined yearly dividend of 8.6% at my buy prices, propped up considerably by PSN's huge dividend.
I'm a holder of stocks just like Mr Buffett & am happy with 8.6% annually, just please don't reduce dividends too much you BOD's.
GLAll & lets see if Ms Truss can get a grip on things & honour her promises, I personally think she will be tested.
Thanks Strictly, I see a possible Truss bounce next week (I’m no great fan) as various announcements are made so DM may be quids in & good luck to him.
After that we’ll it’s anyones guess.
Gary/DM,
A thought to conjure with on that is that providing Bellway continue to make around their long term average 16% return on equity for the next three years (though that's obviously nowhere near a given as things are shaping up) and providing they stick with their plan to reduce dividend cover to two and a half times as from 2024 (from always having previously been at three times cover for around forty years…), you'd then be looking at a dividend yield of around 10% on that purchase price.
And this for a company which, unlike Persimmon, isn't sacrificing most of its growth for a big payout.... so, based on Bellway’s long term track record, one might reasonably anticipate the dividend payment growing by a further nearly 10% a year from there…?
How cool is that if it works out that way…?
As I have said before here, Bellway really is the "Ghost Dog" of house builders.
I've just put out a comment elsewhere headed "Are we there yet?" ~ by which I mean the bottom.....
I have no view to express on that but, if we are, I echo Gary's comment for a purchase made at 1,868p... well done...
Alternatively, of course, on Monday, you may well be kicking yourself for not having waited longer…?
But who can odds that...?
Apart from Captain Hindsight ~ and where is he whenever you need him...?
I suggest that everyone keeps their hard hats on in the meantime… :-)
Strictly
Well done DM that could be an inspired buy in the years to come, I have to say my fingers are getting itchy over the buy button. There are so many conflicting theories that I think you just need to go with your own.
Gary bought in at 10:20 today @ 1868p
Gary, unfortunately you can't time perfectly when to enter a market or stock...
Bellway (and Redrow) are both very cheap against historical standards. Bellway's share price is currently the same level as 8 years ago. Meanwhile Net Assets and EPS have more than doubled in this time. Although i have very little faith in UK government and the handling of the economy, i think we are at the point where a downturn is largely priced in.
As a % of my holdings i have never been more exposed to Housebuilders, than right now. But have only been investing for 5 years, so take this with a pinch of salt ;).
Thanks Strictly. I've already started trawling through your older posts.
Everyday I look at these & other HB's & it seems everyday they are down a bit more, another 3% + as I type today.
I guess the headlines this morning that the housing market is slowing, mortgage applications are slowing, estate agents pessimism etc etc are the reasons. That age old question when to invest, Oh for a crystal ball.