The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen 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.
Hi Strictly
Interesting to see the results of the ‘acid test’ calcs, and the result is surprising. But I’m not expecting any FTSE 100, 250 House builders to go bust – so not looking at that aspect too much. They have extra financing if needed over the coming months, so things seem OK. Fingers crossed as always these days.
CRST has lots to do, but they know that and are tackling it head on. If they get it right there will be good gains from getting things back on track. Key question is to what extent will the turnaround be successful, and how long will it take? My takeaway from the HY results is that it will be a long slog, but if they can show regular progress it will be rewarded. The new Management Team look good to my inexperienced eyes so I'm hanging in there, but having to do it in a Covid world is a tough call.
Crest's sp is the weakest of all the housebuilders remember how it plunged 25% in one day when they announced they had suspended the dividend,none of the other builders tanked so much or at all after saying they were not paying dividend!
Toma,
Galliford may or may not be a fine investment prospect, but that was not relevant to the point I was making - which was that, despite Crest's low PBV and the hammering it took yesterday, by one measure, it is ahead of the other house builders...
Strictly
GFRD is now completely different company, as they sold in January their house building division, last year accounts do not count. As I said GFRD have no debt, cash over GBP 100 ( less than GBP 200) as per their last announcement and order book of GBP 3.2b. Current market cap is GBP 130m, it is a no brainer
Torna,
For the purpose of calculating acid test ratio, the order book doesn't count...
It's the £591m cash plus £754m current receivables = £1,345m against the £1,809m current liabilities...
I make no observation in respect of whether or not acid test is a worthy ratio, merely that it is an accounting yardstick...
And, in Galliford's case, I used the full year for June 2019 not the more current half time whistle, as I don't keep close tabs on that company as it has a seriously chequered past in my view...
I think a relevant point here, though, is that whatever Crest's overall balance sheet situation ~ and taken in the round, current & long term, it's not as good as probably most of the other builders ~ their current position is actually strong and I would suggest that's pretty important right now in order to hopefully get through this Covid era safely....
And their current PBV is very low.... currently just 0.70 as of just now by my reckoning....
So, a fair bit of grief priced in then...?
Especially when you consider the share price is now lower than it was at the start of 2013..!
Strictly
Not sure how or what you have check on GFRD, but for sure you are very wrong. GFRD have over GBP 100m in cash, no debt and order book of over 3.2b, from which 80% are Government jobs, guarantee money., how can you compare this to CRST
There's been a lot of market excitement following Crest's half time whistle these past two days and also a lot of comment here as a consequence...
However, if one steps back from a moment and applies the acid test ratio to Crest's balance sheet - the sort of thing an accountant might do to see if a company is in imminent danger of going belly up - there's a somewhat different perspective to be had.
For those who don't know, acid test ratio checks whether quick assets ~ which are considered to be current debtors plus cash at bank, can pay all current liabilities....
And I've just checked this, and admit I was a tad surprised myself...
I looked at Bellway, Barratt, Battersea Dogs Home (Bovis), Persimmon, Taylor Wimps, Vicky Pollard (Galliford), Berkeley, Redrow and Crest.
And Crest, on their latest figures, are the ONLY ONE TO PASS THIS TEST..!
Okay, Persimmon were close, and Bovis passed it on December's figures but I'm anticipating a nightmare there for the current six months having bought Vicky's house building division during that period...
So there you go...!
Strictly
recovering some of the yesterdays losses
What do u think,a bounce tomorrow?after a huge 18% dump?
told you this was a mess. bye
>What do you mean by book value?
Net Asset Value.
What do you mean by book value? Forward sales stated at £575m = roughly market cap.
Crests performance metrics have lagged behind that of their peers for some time now and they have articulated their intention to try and close the gap.Would not necessarily expect the other homebuilders current performance to be as dismal as the numbers published here today.
off a crest...
About 315 pence per share book value at end of H1.
Forecasting between £35m and £45m PBT for the full year. So arguably 12p EPS.
Trading at about 0.7 times book value. Other builders trading at significantly higher PBVs and yet to report the effects of COVID-19.
yeah how can they from a 51mill loss to a huge profit, cant see it myself and with a recession incoming
I do wonder how they can be so bold as to giving forward guidance. Very few other companies are.
('On this basis the Group expects FY20 APBT to be in the range of £35m-£45m'.) it would seem pretty unwise to assume that things will be 'back to normal' just because lockdown has been relaxed. My local high street is still dead, the commuter carpark at the station is still empty and the big 3 floor town shopping center even though it is officially open, half the shops are sill closed and the ones that are open have no customers!
Sorry - Nigel Wilson - clumsy fingers lol
it has a bad rep, i keep seeing unfinished houses, broken scaffoldings, trucks idling doing nothing - very poor rep
Check out Nigel Wildin from Lgen chatting on Bloomberg tv atm. Discussing present and future issues on board terms.
Worth a watch.
G
Volcano - agreed 100's of grim trading reports will be out this year.
Tav - think over the next year or so those Co's getting the bad news out early may in the longer term fair a little better overall.
Dropping the rns into a red day, was unfortunate, but could provide for a bigger bounce, in days to come.
This is deffo one to have on your watch list for trading.
Will be keeping an eye on CRST over the coming days.
Problem is you to have eyes everywhere at the moment, so much going on out there, with so many Co's.
Gla
G
not convinced this will bounce, could see 180p i reckon, lets see -+
Taverham, point taken. But there's 55.7 m in exceptional items thrown into the P&L as well. I could look on the bright side and say they're getting all the bad news out there but I think I said that last year as well. I'm still holding the shares, not selling.
not sure why they think they will make a profit by end of year.
www.directors talkinterviews .com/crest-nicholson-holdings-plc-59-4-potential-upside-indicated-by-hsbc/412835508