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My post didn't age well .....
I think judging by the reaction inflation is now pretty much priced in and the drop has virtually recovered by hopefully all good from hereonin.
And that’s how mental the market is, good results and the price drops. Seems to be the new norm for all stocks
Today’s higher than expected inflation figures won’t go down well and I can certainly see that as a drag
on the share price today.
Shame, as the results are solid.
Divi will be next April and announced in March.
Profits down but prospects up. If sp falls i will buy more as imv divis this year more than underpin current sp- who else provides a higher yield?
no dividend in half year results crying here
Hopefully we’ll see a flurry of buys this afternoon in anticipation…come what may I’ll be holding onto my shares as a long term hold.
Any silly drops and I will of course nibble a few more.
".....................as you say they're committed to the policy at the moment so will be intersting to see how this unwinds in the coming years!!!"
.........................
PTG,
Starting with tomorrow ~ when their half time whistle is due to be blown....
Strictly
Thanks Strictly for that detail/insight , appreciated ......... I recall you and other posters a week or two back talking around pro's and con's of the various builders (and in particular your set of tests) - as you say they're committed to the policy at the moment so will be intersting to see how this unwinds in the coming years!!!
"I hold RDW as well as PSN and wonder whether PSN may adopt a shareback approach given current SP?"
.............................
PTG,
Bear in mind that, in all likelihood, the other factor (apart from their higher ROE) that drives Persimmon's significantly higher PBV, relative to other house builders, is that they pay out around 80% of earnings in dividend rather than only 33% as with Redrow & Bellway.
And, based on the high PBV, this big div pay out obviously hurts investors ~ given that, for much of the past few years, when Persimmon have been on a PBV of around 3.0, it’s been a matter of a pound of div to investors costing three pounds in underlying retained value ~ though over the medium term this has been masked by Persimmon’s impressive relative share price performance.
But anyway ~ that's the corner that Persimmon have painted themselves into, given that it’s a legacy from the time of King Jeff and the now notorious directors’ bonus scheme.
The corner in question being: how do Persimmon pull back on the very high dividend ratio without harming the share price given investors’ expectation..?
So, until then, this only leaves them around 20% retained earnings for growth compared to Redrow's 67% retained earnings.
So, while I'm not making any predictions here, it seems to me that share buy backs make much more sense for Redrow at current prices than they do for Persimmon as they enhance EPS while also swerving messing with investor expectations ~ as would likely be the case if they, instead, significantly increased the dividend pay out...?
Not joining Persimmon in their corner, in other words…
Especially as, up to now, Redrow have been buying back shares at below book value.
If Redrow were to liquidate all balance sheet assets at exactly balance sheet value, and if they continued to buy back shares with all the proceeds, and if the share price didn't move as a consequence (these are, of course, all very mythical “ifs”), they could, in theory, end up with just remaining one share in issue worth rather a lot of money...!
Don't hold your breath on that, though...
Of course, I could be completely wrong about this and, instead, tomorrow, Persimmon proudly announces a share buy-back programme…? ??
Strictly
I hold RDW as well as PSN and wonder whether PSN may adopt a shareback approach given current SP? When RDW released a few weeks back they announced a buyback which has lifted their SP ~15-20% since mid July.
This is what i was reading on hl site guys, not saying bad just catious
Persimmon – Matt Britzman, Equity Analyst
We’ve already received news from Persimmon that revenues are slightly down from last year as the group struggled to meet home delivery expectations in the first half of 2022. That said, a 4% rise in the group's average selling price has more than offset cost inflation. We’ll be paying close attention to the impact it’s had on profits and if management expect this trend to continue.
Persimmon, much like its peers, faces a multitude of issues around labour shortages and supply chain constraints, adding pressure to margins. The in-house materials business may alleviate some of this pain, but investors should be focused on what affect this has had, if any, and if management expect headwinds to continue.
Dividends will also be at the forefront of investors’ minds. With an impressive prospective dividend yield of 12.3%, markets clearly aren’t convinced the current pay-out levels can be maintained, so we’ll be watching cash generation closely.
Trading update said results will be modestly above expectations. They would not say that lightly so think they will be steller.
For me net assets matter any increase - cash is down £600m but land ox up £200m and working in progress significantly higher hopefully £400m plus. Forward look will be interesting and a statement on 2022 divi (paid 2023) would help. I'm pretty hopeful fundamentals of housing are solid and PSN operate at lower end of market and average house price of PSN is affordable.
Steve you seem a lot more confident than the very catios report i have read on Hargreaves lansdonn, but hopefully you will be right
Good luck
The results will be excellent
With hindsight very possibly
But let's see what the results say
Wasn’t when it was low £17’s the best time to buy back in.
Sorry i meant results on Wednesday, i do apologize
Gla
Hi all, i sold up here the day before exdiv, looking for a good time to get back in, the results will be very interesting on monday
Best of luck and hope all goes well