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I'd be very surprised to see Redrow taken out - myriad reasons but not least because it's a massively expensive way of buying land.
anything over £8 would definitely take some serious consideration.
min 850p if one comes. if not it probably gets there by end of next year anyway.
Hopefully not Telford Homes 2.0
This was trading at over £8 pre covid. And recently over £7 on no news. Let's see what offer comes if any.
If your in the know then you know...
Someone on the inside can't keep their mouth shut so now we are going to see sp volatility until a RNs... Which I hope is soon.
I was pondering selling my shares with a tidy profit but I'll hold for a while longer now... Lol
It would not be a rumor if we had all the info.
Anyone know where the rumors are coming from? Or have any more detail? All I can find is that sharecast article which says basically nothing! Thanks!
Rich pickings
What a surprise, another quality company with a strong balance sheet and a pile of cash...
The only thing I can think of is that something in Persimmon's (PSN) half year results bodes well for Redrow if they manage to mirror the Covid comeback. Still going through the details...
I was watching the SP and wondering the same. Results and dividend details aren’t due for a while, no other RNS.
Maybe a big buy in, or leaked results or similar?
The price has been manipulated for weeks now, I have been watching. only a matter of time before it had to break out. hopefully a fund buying in.
No idea...but I'm happy
Big increase today, any idea why?
Demos,
As you and I have discussed elsewhere, it's much more important & useful to be working off an estimated updating BVPS each month, and each intervening ex div date, than it is to try to get the forecast EPS down to the last penny...
This estimate generally provides a far more accurate BVPS, and therefor also PBV, at any time ~ usually within about 2%, based on experience ~ than working off of either last year's BVPS or the forecast one for the current year (which will, of course, be about three months' out of date anyway by the time it's given with the year's figures...).
Strictly
Yes 'usually-right', you're right .. I can see a next year consensus EPS of 75p on sales of £1.92 bn and OM of 16.9%. The consensus now looks seriously out of date given the announcement today by RDW (sales £2bn + and OM at c 18%), and I suppose we can expect upgrades any time soon. Whichever you look at it RDW is undervalued unless you're in the 'world is going to end' camp.
consensus estimates are a bit lower than that at around 76p but they havent been raised for a while, so that is still to come from the brokers. even at present f/c its still only a 8.5 fwd pe for 2022
Just doing the maths .... they say £2bn + in sales for next year and OM of circa 18%. That means an EPS of about 85p for ye 30/6/22. Everyone's an expert in the housing market of course - so some may disagree. But if you accept what RDW say (and for sure they know more about the housing market than me ... and are usually conservative in their statements) then this should be £8 by Xmas - a 25% gain in 6 months. 'Should be' is not 'will be' of course.
no reason why they cant test 750-800 later in the year
Really nice update. I think we were all expecting a strong order book flowing through to 2022 with the way the housing market is currently rallying. This should tick up nicely until results are published.
The story just keeps getting better. I make that EPS of about 68p for the year, so that's a PE ratio of just over 9. What's not to like? Probably the best amongst the house builders too. And confident enough to flag up over £2bn in sales next year with imporving margins. Can't go wrong here.
Latest Release
Jul 06, 2021
Actual
66.3
Forecast
63.8
Previous
64.2
The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager's Index (PMI) is a diffusion index incorporating survey results provided by construction firms throughout the country. A reading above fifty suggests the construction sector is expanding, while a reading below fifty suggests the construction sector is in contraction. Policymakers and traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, rather than waiting for the hard data to emerge.
A reading that is stronger than forecast is generally supportive (bullish) for the GBP, while a weaker than forecast reading is generally negative