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I didnt check crest recently. Recognized it was up (in my portfolio) 40%. I decided to hold, because of its dividend. Then it went down and I regretted the hold. Not until now, when it was back up, I read of the dividend cut. So I made the decision to sell with at least 35% profit. GL to all
Looks like it, a bold move and unusual to see in an approach like this. Could indicate a plan to to go hostile, or at least dangle the implicit threat of that over Crest board.
Do the RNS's of today indicate that Bellway now has a 10% holding in Crst?
I only buy shares that I’ve loved with a high asset value hoping they get taken over or gradually creep back up again. You don’t need inside information but I would like some.
Seems to me someone has been trading these shares with knowledge of the offer.
That's all wrong. All shareholders should have the same information. At the same time. All have the same rights.
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How come no class action or legal on this?
Posada, that’s for your reply. I usually buy share only if they paid a dividend 5%+ just in case the price drops I can look forward to the div. With Crest cutting the div by 80% not must to look forward to, anther reason to sell
I have just check the shares that I have sold at a loss and if had kept them I could have sold them later for a profit
Velladean. What would Warren Buffet do. He'd keep the shares. One of his main themes. Only buy a share you are happy to keep for 10 years. This will in time achieve it's NAV.
Was thinking the other day. Of all the shares I have sold at a loss I would have made at least 50% on them if I had only kept them long enough. Example M and S.
Having said that I wish I have got in at £1.90 just a few weeks ago.
Good luck.
Posada agree 100% I brought in a few days before result so not happy with the drop, now with rise today don’t know if I should sell now and take the 1k loss or hold on hoping it will go up more if and when Bellway comes back with another offer
Offer made last month. Price goes up from £1.90 to guess what. Just about the offer price. On results it comes back down.
Seems to me someone has been trading these shares with knowledge of the offer.
That's all wrong. All shareholders should have the same information. At the same time. All have the same rights.
For completeness before someone else says it let's mention Berkeley too. I'm sure we get the broad point of that sentence from my post - that there are a finite number of plcs with the necessary scale and financials.
404x: "Probably too big for the rest to absorb."
Except TW. I'm not saying TW will be in for CALA, they've already got a decent landbank pipeline, but TW are big enough to absorb CALA.
Cala deal will be an interesting bellwether. With L&G looking to exit the sector completely will likely require cash buyer. Also reported they're looking for price on a par with NAV, all means quite deep pockets required, only so many plcs could justify it. Bdev busy with Rdw, maybe PSN could fund it with a rights issue. Probably too big for the rest to absorb.
Agreed. Labour will be good for the Housebuilders.
I have been monitoring the house building sector for a while and there are only a few remaining big players to be swallowed up. Crest has under performed for the last few years maybe this is a good deal
I'm waiting to see who buys CALA homes but looks like its not Bellway
Spring field properties - 94p Scottish play
Watkin jones 45p
GLE affordable homes £5.30
PEN buys CALA?
But all politicians are saying build more houses so any house builder is a great bet for a labour or ny other victory
"The results today were dreadful and disingenuous"
....................
James,
And it's probably also worth bearing in mind that Crest's book value per share hasn't made any progress since 2017...
They seem to have taken over Galliford's mantle of being the Vicky Pollard of the sector....? :-)
Strictly
I don't know about punching their air, seems a bit of an overstatement. Personally only bought this in April as a recovery/takeover play. Market punished accordingly the operational issues, everyone knows about them already. Bellway's offer means this has now become an M&A play where metrics like NAV becomes more important than previous management.
Reeks of opportunism. 350p is a fairer offer. Or 325p cash.
The results today were dreadful and disingenuous (specifically, ignoring hugely increased remediation liabilities to arrive at a delusional net operating profit, rather than a thumping loss). The CRST management team has been very poor and I do not trust the reported accounts - even now. CRST shareholders should be punching the air that anyone is prepared to to take this mess over at a material premium, even accepting that the CRST share price is on its knees - as is the BWY share price, for that matter.
Poor offer of 20 percent less than assets needs to be much nearer 3 pound a share
Bid looks logical to me, last month I posted on here that this was a promising takeover target. Definitely makes sense for this to be absorbed into a larger group for cost savings and scalability. Will be interesting now to see if this opener flushes out any competing bids. Either way should liven things up.
CRST have rejected an offer from BWY based on £2.53 a share
Bellway PLC - Response to Press Speculation #BWY https://www.voxmarkets.co.uk/rns/announcement/3b34abda-ba07-418a-b303-99d678a4f49a #voxmarkets undefined
CRST have suffered a series of mis steps over recent years, which reflects upon the mediocre management team in place. This, plus a cyclic down turn has compounded to send CRST to the bottom quartile with respect to sector performance. If they can work through these difficulties, and under new leadership start to rebuild margins with more predictable earning forecasts, then they do run the risk of being picked off by private equity, or one of the larger builders.
I would expect the management team to rush through new bonus arrangements, and set themselves up with share options, to mitigate this risk and ensure that they, at least, will prosper either way. A little more difficult for the ordinary Joe profit from a recovery. Still, time will tell.
IMHO, there are less speculative investments in this sector at the mo.
All housebuilders have underperformed the rest of the market vs 10 years ago. Go back a bit further though, at nadir of financial crisis in 08-09, and anyone investing in the big plcs at that time has done very well indeed.
Similarly, if you chose to pick the comparison starting point as the Truss car crash in Autumn 2022, BDEV is up by 40%+, Bellway by 60%+, Redrow by 75%+ etc.
Crest has its own specific issues, much of which overseen by CEO who announced his retirement in January. We'll see if new one appointed today can turn things around.
But the main point is that this is a cyclical industry. We can all chose to pick arbitrary dates to say anything, but it might be telling that those investors who bought into likes of BDEV or RDW during the periodic cycle lows - before the inevitable recovery kicked in - did very well indeed.
This is my first look at Crest Nicholson. There are obviously uncertainties with the cladding provision. Who knows whether that gets worse from here? Or by how much?
Today’s results were not great as they are working through selling properties at rubbish margins built during the worst of the build cost inflation. However, they stayed very active in land acquisition when prices were at their most favourable in 2023 which has allowed them to be more selective in what is now a more normalised competitive environment.
Is there a potential situation arising in a year or two whereby they are completing construction, absent of the extreme build cost inflation of 2022/2023, on sites acquired at cheap prices?
This would have a turbo charging effect on margins that other developers who adopted a wait and see approach in the 2023 land market may not benefit from in the same way?