Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Sinking but must be worth a nibble .
SP down 8% early morning. Markets were hoping for dividends to be returned. Apart from that results were strong.
Any public reason for the rise this afternoon all of a sudden after 2pm?
My speculation (and only that) was buying pressure from one of the American activist investors?
…but I guess if that’s the case we won’t know for a few days until an RNS is published.
Overall I would say the results are poor.
Although there is a return to profitability the results undermine the long term strategy of the company which is to invest in its Partnership and Timber Frame businesses and sell the House Building business.
Despite a massive investment in the Partnerships business and an increase in volume, profitability has fallen and the margin has dropped significantly. The timber frame business has been impacted by an increase in lease costs and is likely to be impacted further by the increase in the cost of timber which will result in a lower demand over the 6 months for timber frame houses.
The only silver lining is the increase in the profitability of the house building business. But they are selling that!
Any thoughts on this?
What’s going on today? Saw some price target upgrades but presume something else is going on as they are far outperforming peers?
Seem in-line with expectations. Taking a long-term view I feel Countryside is well placed with good cash management and can only see the PRS demand increasing over the next few years. Short-term bumps for all housebuilders in 2021 but CSP has the right product and area mix to make gains and I'd expect a good rise in SP in the long term
Quarterly results tomorrow, what does everyone think?
Amazing run lately. Maybe a bit toppy now and time to pause for breath with all the unemployment going to hit the fan next year. Solid results though yesterday. Looking for a lower entry point.
https://news.sky.com/story/countryside-properties-activist-demands-break-up-and-board-seat-12133202
Sold the placing stock a little early ...just before the vaccine announcement!
Finally sold my placing shares today at 393p. Been a while. I had expected to sell quickly for a small profit.
Holding the stock I bought below 300p for results this week. TW results today look good so perhaps a rally here to about 450p.
Tuesday 10th. November - Persimmon 3rd Quarter Results
Wednesday 11th.November - Taylor Wimpey Trading Statement
Thursday 12th.November - Vistry Trading Statement
Thursday 3rd December - Countryside full year results ( and post year end comment ) Trading update already provided. https://www.lse.co.uk/rns/CSP/fy-2020-trading-statement-lkvvf06nc2onk7t.html
https://www.thebusinessdesk.com/northwest/news/2068401-sold-out-development-to-be-expanded-thanks-to-second-land-deal
Mark Hadfield, managing director, partnerships Merseyside and Cheshire West, Countryside, said: “Our existing Wren Green development has proven extremely popular with local families of all sizes, and by extending this established development we know we’ll be offering much sought after quality homes which buyers in the region are looking for.
Agreed. All seemed a bit too cautious(ly optimistic) this morning.
Not a good day for housebuilders. Vistry, announcing contract wins down also.
RNS trading statement best summarised by Peel Hunt
Peel Hunt, which has a 'buy' recommendation on the stock and a target price of 380p, said there were "few surprises" in the pre-close statement.
Results on Thursday...with the housing market momentum carrying on since their last announcement, fingers crossed the dip today was more the wider (stock) market and Thursday will be a nice blue day!
BARCLAYS INITIATES COUNTRYSIDE PROPERTIES WITH 'OVERWEIGHT' - TARGET 420 PENCE
They think it looks a fairly attractive proposition - hence the rise.
RNS They give it as as an event changing breakdown of voting rights. Looks to me that Browning West have increased by 3%.
Incidentally, on past performance, Countryside is said to be the fastest growing UK Housebuilder.
Little bit of information.
https://thenegotiator.co.uk/who-are-the-most-successful-house-builders-in-the-uk/
Sharecast News) - UK housebuilders are too cheap to ignore, Jefferies said in a research note on Thursday.
"With construction looking un-impacted by the latest Covid measures and the strength in the housing market providing increasing comfort on the sustainability of demand, we see the UK housebuilders as oversold," the bank said.
"News flow on Covid, Brexit, stamp duty and help-to-buy changes will likely create share price volatility near term. Nonetheless, we see current share price weakness as presenting a great entry point for our key picks: Persimmon, Berkeley, Barratt."
Jefferies noted that to date, housebuilders have said that local lockdowns such as the one in Leicester have not impacted construction build-out on site. As a result, the bank reckons that similar will be true of Tuesday's step-up in Covid measures and would even be the case in a scenario of a more aggressive lockdown.
"Reflecting this, the more important impact of the lockdown for the sector will likely be the influence on customer demand," it said. However, it said that with agreed sales up 40% year-on-year, mortgage demand ahead of levels lenders can process, and house price inflation 3-5%, recent housing data, provide increasing comfort on its forecasts.
"Near term share prices may remain volatile reflecting macro news flow, with an air pocket in company news flow until the November trading updates which should be able to provide colour on demand for housing for April and beyond (i.e. after the expiry of the stamp duty holiday and Help to Buy changes).
"Nonetheless, with valuations reflecting house price declines of up to 14%, we believe the profitability and return on equity profile of the sector remains significantly under-estimated."
Today's RNS. Partnerships again, this time in London, supported by Homes England.
And repetition for clarity "As at 30 June 2020, Partnerships had 40,267 plots in its land bank or at preferred bidder stage equivalent to 9 years' worth of work at 2019 volumes offering great visibility over the medium-term."
Homes England - "We’re the government’s housing accelerator. We have the appetite, influence, expertise and resources to drive positive market change. By releasing more land to developers who want to make a difference, we’re making possible the new homes England needs, helping to improve neighbourhoods and grow communities. So we welcome partners who share our ambition to challenge traditional norms and build better homes faster. Join us in breaking new ground to make this happen."
Yes the sp has rallied strongly in the past week, its also extremely encouraging to see the directors and senior management putting their own money into the placing. A nine year order book will be the envy of many.
Trumpets blare....today is the first day this has been above the 335p placing price. Been a wait....
So we shall have a trading statement on 15th. October. They actually seemed quite upbeat looking forward on 22nd. July - https://www.lse.co.uk/rns/CSP/q3-2020-trading-statement-eownrbf4m9xo03s.html
"We have excellent visibility of future work through our strong forward sales position of 7,504 homes compared to 5,723 homes at the same point last year at a value that is up 34% at £1.5bn (Q3 2019: £1.1bn). Within this order book, our sales performance during lockdown contributed to a 25% increase in the private forward order book on the prior year to £514m (Q3 2019: £411m)."
"We continue to see attractive opportunities for growth in Partnerships given the strength of our secured work, equivalent to nine years' work at FY 2019 volumes, and the resilience of our mixed-tenure model."
And the directors and senior management bought into their 22nd. July optimism on the same day in the 335p ( today's price ) placing "The total gross proceeds of such Director and senior management participation will be approximately £402,000."
https://www.lse.co.uk/rns/CSP/result-of-placing-zb50zx9fb6ht6wc.html