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9999 bought @469.67 T5
If this deal unravels, share price will go up . theres no doubt about that, these are super cheap at the moment, just to prove I am putting my money where my mouth is I am about to buy 9999 shares to add to my holding...
I'm not sure what effect this investigation will have on the short term share price as surely this would have been factored in already as a given as its such a large deal on the table?
The UK Competition & Markets Authority said it will investigate the planned GBP2.52 billion takeover of Redrow by Barratt. The CMA said the investigation will assess whether the creation of that merger may be expected to result in a substantial lessening of competition within any market. "To assist it with this assessment, the CMA invites comments on the transaction from any interested party," the watchdog said, with invitation to comment closing on June 28. The CMA has a deadline of August 8 for its phase 1 decision. It had opened a preliminary investigation in March, after the all-share takeover was announced a month earlier. Housebuilders have already attracted the attention of the CMA. In February, the regulator said it found "fundamental concerns" within the UK housebuilding market, and launched an investigation into eight housebuilders, including Redrow and Barratt. Publishing its final report on the housebuilding market which followed a year-long study, the CMA found that "the complex and unpredictable planning system, together with the limitations of speculative private development, is responsible for the persistent under delivery of new homes".
Last post: accipiter, 7 Jun 2024 20:15
Barratt Developments price target raised to 540 GBp from 488 GBp at Berenberg
Started: OnTheSideLine, 17 May 2024 14:22
Last post: tomjones2, 17 May 2024 14:23
Yes , it was in by lunchtime
Hi,
Has anyone had the dividend payment today?
Thanks
Date: Monday 13 May 2024
LONDON (ShareCast) - (Sharecast News) - UK supermarket group Asda on Monday revealed plans to redevelop a 10-acre site in North West London, hoping to create a new town centre that includes 1,500 new homes.
The grocer said it is partnering with develop Barratt Developments to redevelop the brownfield site, currently home to its Park Royal Superstore in the Borough of Ealing.
The proposal, which is subject to planning approval, will see Asda build a new 60,000 square foot superstore and car park, in addition to 1,500 new homes - 500 of which will be affordable - "creating a new town centre for the local community".
The mixed-use redevelopment of an established store site is a first for Asda and follows moves by a number of other retailers to get into the house-building game, such as Sainsbury's which submitted plans in October to deliver 2,519 new homes alongside a new 1,300 sq ft store near Ladbroke Grove.
While there was no financial information given, Asda said in a statement that the plans represent "one of the largest land deals of the last couple of years".
Ian Lawrence, head of mixed-use developments at Asda, said Asda's foray into mixed-use redevelopment marks a "significant milestone for the business".
"By working with leading developers like Barratt London, we are able to maximise the full potential of our property portfolio for the first time."
Lawrence added that Asda is "also unlocking further opportunities to release value from our extensive property portfolio, which can be reinvested back into the business to fund other initiatives".
gla
Started: driftking27, 9 Mar 2024 14:25
Last post: 1.ARMANI, 16 May 2024 09:59
Took some profits with one of my miners yesterday ........ buying back into BDEV.
Sold before the Redrow deal was announce 562p.
gla
"So as the resolution was passed yesterday does that now mean we all get 1.44 shares for each one we hold ?"
..........................
Willy,
Not quite yet, the Fat Lady still has to sing...
The Fat Lady in this instance in officialdom...
If you check out the Barratt circular in the RMS dated 19th April, the timetable allows for (hoped for) approval of the deal happening during the second half of this year...
Until such time, this is an aspiration ~ albeit maybe a likely one, though it would be above my paygrade to have a view on that ~ rather than a done deal...
Which is why, at the time of writing, Barratt's share price is i515.2p, so 1.44 x that is 741.89p, yet Redrow's share price is only 728.5p.
So, the gap ~ between 741.89p and 728.5p being 13.39p, or 1.8% of the 1.44 rating ~ will reflect any market twitchiness about the deal maybe, just maybe, not going through....?
If you happen to be drinking buddies with the Captain (Hindsight) ~ which sadly I ain't ~ then you would surely have an opportunity to make an extra bob or two...?
Because if he told you that the deal would go through, you'd get the benefit of the inevitable relative price hike (relative between Barratt and Redrow, that is, there's no absolute here) by being invested in Redrow shares, and if he told you it would fail, you could sell Redrow and then re-buy once the result was announced and Redrow's share price (almost inevitably) fell back again....
In relative terms, of course... :-)
Personally, I was very fortunate to be 100% invested in Redrow at the time of the offer (I don't get many of those right) and I sold the same day , got a result, and don't wish to overly push my luck...
Anyway, hope that helps..?
Strictly
So as the resolution was passed yesterday does that now mean we all get 1.44 shares for each one we hold ?
Wondering whether to reinvest my dividend on Friday
Drift the usa economy is growing at around 3% based on energy costs that are half ours and taxation around 66% of ours which is reflected in future earnings and hence sp. Our prosects are grim and labour will not help. Net zero opportunities in the UK is what net zero means in reality.
Started: Krustysmegma, 15 Mar 2024 12:32
Last post: Meconopsis, 15 Mar 2024 13:26
“Details” at https://www.gov.uk/cma-cases/barratt-slash-redrow-merger-inquiry
It’s hard to see how the merger of the largest and 7th largest creates competition concerns when PSN, TW and Bellway aren’t far behind BDEV.
Finally, the CMA has got involved! RDW not a done deal yet.
Started: driftking27, 9 Mar 2024 12:35
Last post: driftking27, 9 Mar 2024 12:35
On the quality of builds. I do believe Mctaggart & Mickel are one of the best. Think a US company acquired them?
I do live in a Victorian Red sand stone build from 1912. Would’ve nice to bring these back rather than the paper thin new builds
Started: Macminchus, 23 Feb 2024 19:46
Last post: Macminchus, 23 Feb 2024 19:46
Own new rate reducer mortgage scheme is being launched on Monday. This is making new build properties more attractive to buyers than the 2nd hand market. Launching initially with Barratts
Started: strictlybricks, 15 Feb 2024 14:59
Last post: accipiter, 18 Feb 2024 13:55
Trout. I hope you don’t mind. Your comments sparked so many similar thoughts.
I left school at 15 with no qualifications but pushed by my parents to find a job, any job, that could contribute to the family’s poor income by way of paying “board”. I joined the University of Life in the building trade of the 60s where health and safety, diversity and ESG would have been laughed off site by brickies, chippys and sparks. When arthritis kicked in as it inevitably does to tradesmen scrabbling around on the floor for years, I found myself in the Civil Service where 30 years in the building trade gave me a head start on the skivers, misfits, deviants, and the “instructors” who filled many a day a with “courses” designed to correct my thinking. I think a number of them were budding lefty politicians.
Just now I try to influence my two 18 year old 6th form grand kids to get a proper job in the real world and to be unswayed by thoughts of a partying debt-fuelled uni, the Mickey Mouse degrees and the brainwashing they will witness.
Fortunately, and influenced by their parents and grandparents, they both have part time jobs, one in a MacD, the other in a supermarket. They mix with people of other backgrounds and are learning about life in a far more rounded way than a University could. When they reached 18 they both received a sum of money with appropriate advice from Nana and Grandad, invested in their early years in amongst others, BDEV.
And now I am back in BDEV in a small way but looking to build my stake. GLA.
Interesting debate... I've always loved the phrase "standing on the shoulders of giants", meaning we don't have to discover everything from scratch but can learn from our predecessors and build on that knowledge. That can be applied to all avenues of life, but in schools it seems to be done very badly. We chuck random facts at children with no context of the history of why it is relevant. Take a subject like trigonometry... how often have we heard the phrase "when will I ever get to use this in real life?" Whose maths teacher ever explained that trigonometry provides a perfect model for working our the best place to convert a rugby ball from? We bore our children with facts without teaching them how to think, by showing them how these principles were discovered in the first place.
I'm of an age where I got a grant to go to university, but I quit after a year because it was a worse quality than I had experienced in school and 6th form. Now I find myself as an employer being presented with CVs of graduates who simply don't know how to think! They tout their qualifications, but have no practical experience of using any of this knowledge. Give me a 22 year old with four years of work under their belt over a 1st class honours graduate any day. And don't get me started on the levels of entitlement and salary expectations of these graduates!
If I had had children (I managed to escape that burden) I would definitely have encouraged them to learn a trade and only take on years of debt for university if they showed massive aptitude and desire to follow that path.
A plumber with integrity is worth 100 accountants in my book!
Hi Strictly,
I was watching a clip from Elon Musk on schooling and education, and I’ve tried to have
a conversation with some elites, his point basically is the whole principle of schooling
needs to be thrown out the window and started again.
Of course it won’t be, but it’s a common point from business that the kids coming out of
education are not fit for business. Why, is that, well it’s the great elites who run the shooting
match, and have no interest in what business is saying, and it’s needs.
A shame really, because the consequence particularly with the house building trade is
that all the house builders want to build is little noddy houses, which they have got
down to a semi skilled level of construction.
Tradesmen in there 50’s are leaving the industry in their masses, because it’s not the building
trade they all started in.
And, yes I know loads of self made people, who didn’t enjoy school purely because we just
all wanted to get out and start earning money and starting businesses. Even more opportunities today for hard working young people, and property is particularly appealing.
“London, the east end, where I grew up from a working class background has produced some of the best businessmen by far. “
………………..
Finley,
Well, I’m from West London, I’m afraid, but now living on (not in) Dartmoor….
I had record wholesaling then video wholesaling companies, back in the day from the mid ‘70’s, sold out in the mid ‘80’s, left the capital with others to manage until 2000 when I took it over myself and ended up all in house builder shares for the past twenty years…
And Captain Hindsight has shown that to have been a good call… but, another twenty years on from here, who knows?
But I’m imagining I’ll be pushing up daisies by then anyway ~ cheerful b.stard that I am…? 😊
But, yes, I’ve read plenty of biographies about successful businessmen and, back then, pretty much all of them didn’t do well at school…
Not because they were thick ~ far from it ~ but largely because they couldn’t stand being told what to do…
Just like me…! 😊
Strictly
I did like your comment about the boy from Bermondsey. London, the east end
where I grew up from a working class background has produced some of the
best businessman by far.
All out of hard working class values, and not a graduate in site, those were the days.
Started: Meconopsis, 8 Feb 2024 10:45
Last post: NoloServileCapis, 15 Feb 2024 13:21
Thanks Meconopsis for a really useful counterpoint view.
The NAV argument in particular is strong and, whilst I’d like to see the discount widen a little more before I top up, I am sure that it will in time at least return to par or better. I am happy to buy the assets for a discount and to collect the, albeit reduced, dividends whilst I wait for the discount to turn into a premium.
The minority might not be as tiny as you imagine.
I’ll reinvest my divi but would only buy more nearer 400p.
Great longer term buy/ hold, dividend has been reduced yes and the final dividend may well be reduced also, that's the negatives and I understand why some dividend investors may wish to move on and buy into something with a larger dividend like M&G, however my opinion is that this position is temporary. Dividends will likely rise again next year and when interest rates are cut (later in the summer in my opinion), this will recovery swiftly. On top of that when the world settles down again (wars, etc. - timeline unknown) and the economy starts to move in the correct direction the value of this share will sore. £6 is my minimum target and potentially it will move a lot higher than that. Till then I'll sit and wait and collect the, albeit slightly smaller, dividend.
Good luck all
This drop nicely allows me to reinvest my dividend.
I get the analogy, thought of it myself, you could even stretch it as far as Bentley if you wished. As the new Skoda Enyaq Coupe starts at £50k you could even argue that all the marques have moved up a division, and that Skoda is now a premium brand, although it's taken 35 years to get there. I'm just not sure you can assume that people buy houses on the same basis as they buy cars. I guess we'll get some answers if this goes ahead.
Started: Meconopsis, 8 Feb 2024 14:45
Last post: Meconopsis, 8 Feb 2024 14:45
It's worth having a look through them. At least one new short position. LOTs of corporate to-ing and fro-ing.
Started: Price-Monitoring, 8 Feb 2024 02:28
Last post: Clank, 8 Feb 2024 12:47
I have sold my shares today too because I am a dividend investor and cutting the dividend (however temporary) for me is a time to move on.
I wish everyone who is holding on to their shares the best of British though.
This boardroom maneuver makes the ability to invest in this great company like Barratt near impossible now to hold .This purchase brings absolutely no value to me as a share holder. This appears at first glance as early stage empire building with other peoples money. The board work for us and not the other way around. If hes not building value for us then how can i trust him then. I have had to sell. When government ask why no one invests in UK companys it's for these very reasons. Good luck to the folks sticking wth it tho
Last post: Krustysmegma, 8 Feb 2024 11:07
Oh yes, thanks for the correction Meconopsis. I don't know how that % sign slipped in there, it should have read 1.75x. Apols also to buller for any confusion, senior moment...
@buller...
@Krustysmegma is correct that a lower dividend cover pays out more of the earnings. @Krustysmegma is incorrect is adding a % sign to the dividend cover number - it's a ratio, not a %
So, if Barratt made £100m then dividend cover of:
- 2.5 results in a dividend payout of £40m to shareholders
- 2.25 results in a dividend payout of £44.4m to shareholders
- 2.0 results in a dividend payout of £50m to shareholders
- 1.75 results in a dividend payout of £57.1m to shareholders
Barratt have announced a while ago a plan to reduce dividend cover (i.e. increase capital returns to shareholders) from a dividend policy of 2.5 dividend cover in increments of 0.25. Someone here will be able to remember where they were targeting (I seem to remember 1.5, but I might be wrong).
The reason for the policy was that the company was accumulating more capital than it could usefully deploy.
No, it clearly says in the text they are reducing dividend COVER to 1.75%, which is actually an increase from the 2% the previous year. It doesn't offset the reduction due to lower volume, profit etc. though.
It clearly says in the text they are planning to reduce dividend to 1.75 so nearly having this year. I have made my money on the the SP and was only staying in for the very good dividend over the years. Looks like that party is over so will look around where I canget better dividends
Last post: accipiter, 8 Feb 2024 09:30
I would be interested to know the combined land bank of this deal. A sellers market soon.
Some share holders have long memories. That clown Mark Clare buying Wilson Bowden.
They should just stick to building little noddy timber frame houses, and don’t over expose
the business, which this deal will surely do. I managed to get out prior to this announcement.
Thankfully.
weirdly, i'm doing the same thing but in the opposite direction: looking for a price close to 500 (mid between now and low of a month or two back) and then i'll jump in...
gl.
I don't want to be a downer and I like the look of Barratt, but this company has forecast profits for 18/19 that are at least in line with inflation, has an attractive P/E ratio and does not appear overburdened with debt, yet only 6 weeks from going ex dividend the SP is 11% below the mean for the last year.
I think that I will wait another couple of weeks and if there is no change will jump ship.
Totally agree.... big top up for me this week.... this will hopefully rise steadily from here up until end of October, with anticipated pre div price of approx + £6.30.... GLALTH
Started: longtimeinvestor, 7 Feb 2024 12:47
Last post: Lambcurry13, 7 Feb 2024 20:06
Does anyone think the final dividend will be reduced the same as the interim……Hopefully not.
This was bad timing by BDEV and Redrow. If they had waited until after the March budget and /or the one in the autumn when pre-election bribes in the way of tax cuts will be the name of the game, the market’s and their shareholders' reaction would have been different. For me its a hold, glass half full and in the longer term still a buy.
See my post of 12 January. The gap between what the market thought about builders and what builders thought about builders was quite a sell sign.
I still think this will drop more looking for 460
Out at over 487p.
I purchased at 396.5p on 19th Oct 2023 so making over a 20% return.
This follows an 11 month hold of the stock between 2016/17 where I took a 40% gain.
You never know I may be back for a third time.
Good luck to BDEV holders - shame about today's disappointment.
Lower until an interest rate cut I suspect. Shock needs to be absorbed to see direction and if it's thought a good strategy, as another poster mentioned, I'd rather have TW.
Placed a speculative trade to try and make a small cap gain of a few hundred to offset dividend loss, would need 500p to make worthwhile. Otherwise will hang until the market improves.
How low will we go . ;-(
Started: Fallingknife1, 7 Feb 2024 07:37
Last post: Kando, 7 Feb 2024 11:32
Doesn't the RDW sp imply Barratt should be trading closer to 470p if there's now an implied pin at 1.44x? Is that spread just a tug of war between the two shares as to whether this is a good merger or bad?
And guess who are the poor saps that got burnt
well the value destroyed here in mcap equals the value gain in mcap at rdw , so zero overall benefit to investors who have stakes in both. meanwhile hundreds will lose their jobs. what a **** show.
I bet these two companies will get on like a house on fire. Oh wait...!
I have over 40% of my portfolio invested in these shares and for a good while now I have thought they were heading for a tumble, managed to get out of some held in an ISA at a profit, but the rest in other accounts remain unless I make a loss! I didn't expect them to do something like this proposed purchase at this period of time and when the profits have been seriously hit, Its all gone Pete Tong!
Started: causal, 7 Feb 2024 11:21
Last post: Meconopsis, 7 Feb 2024 11:23
Nice to see you backing all of that with facts @causal ;)
tw are the best out of all house builders. only gain in the long term. only good thing come out of redrow deal, adds quality to the portfolio. because barratts build ****e. like persimmon. not superized go back early 400s
Started: HappyInvestor100, 7 Feb 2024 09:06
Last post: Taverham, 7 Feb 2024 09:27
No money is changing hands here but there will be restructuring costs with a short term payback. Bdev are buying a brand with better products but paying for it with shareholder cash. At least the ceo will get a pay rise for running abigger business - whats not to like???
Could be a buying opportunity, but not yet.
The short term of the deal isn’t great, but long term it is.
Depends if you bought bdev to sell short term 🤷🏻♂️
I bought for long term
Was looking to buy in here, looking at Redrow price I think I will wait the market does not seem to think its a fair one
Sack the board.
All IMHO DYOR
Happy
Started: Connexion, 7 Feb 2024 09:21
Last post: Connexion, 7 Feb 2024 09:21
And he’s on the prime minister’s business council!!
It’s not what you know, it’s who you know.
I am looking at this set of results wondering if BDev even have a future! Incredible timing, i had been looking for around 10p as a dividend but 4.4 makes it not worth holding at all. I can make more shoving the cash into a bank account!
Started: exiledins, 7 Feb 2024 08:23
Last post: Krustysmegma, 7 Feb 2024 08:59
...and it was loaded with debt, but the timing & terms still seem pretty poor for BDEV holders. The economy is far from out of the woods yet so who knows what's around the corner?
That deal was lousy timing, just before the credit crunch.
Reminds me of the Taylor Woodrow / George Wimpey merger which almost put them out of business. Difficult to see positives from the BDEV side.
The market seems to have decided that CRST. Is the next likely target to be taken over.
Started: Connexion, 7 Feb 2024 08:32
Last post: Connexion, 7 Feb 2024 08:32
Did the board all buy shares in redrow yesterday!
We are buying them and my 6% loss is their 12% gain.
Dumb. Never sold on impulse but tempted here!!
Our figures are rubbish, so we’ll spend money buying what we don’t need and lock our shareholders in to a crap dividend payer!!
What a stupid move at a bad time.
Last post: Fallingknife1, 7 Feb 2024 07:35
Divi halved same as Redrow. Would probably knock the price though the company said it had been flagged. Might fall today anyway as it is paying a premium for Redrow ironically reducing on paper the value of the transaction.
Results worse than I was hoping for but big news is takeover of redrow. Should be other way round imv as rdw perform better!
Earnings tomorrow morning
Declaration date 07/02
Ex date 08/04
Pay date 16/05
Hi all anyone know when the next dividend is please.