The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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.
Been getting these back from 1317 yesterday and still have powder dry as still a bit rocky but what a bargain holding for the long term PSN still made a profit I would like the div to be cut to 20 p to preserve cash as this will be good in 6-9 months time , land bank good a people need a place to rest their head and a profit is a profit this can only get better looki9ng to get 20,000 which will be my limit as other shares in my portfolio. happy with my holding and still in profit with PSN. :-)
BEEN
...I have 'bought' some back..
Hey denby, do you still have your 1299 buying order? Oh, and if you don't mind me asking, how many PSN shares have you bought now?
I have some back at 1307.75 this morning. Seem a bit early, should have waited a bit longer, lol. šš
Got a bargain 1302 what a late Christmas present
Meconopsis, now I understand.
The note was generated by A.I., which was instructed to include moat status.
A human would not have included the phrase, āthe no-moat homebuilderā. Given the definition of moat, a redundant phase in the context of home builders. Only needs a minor modification to the instruction set. Iām guessing next yearās note on Persimmon will not mention moat status.
In 1978 I was writing machine code to program Motorola 6802 microprocessors. Weāve come a long way!
Apologies londoner7 - text from the site below.
Very few UK companies have a āmoatā and none of the house builders. Even Apple was only classified as having a narrow moat - although I think thatās now been revised.
The textā¦
The Morningstar Economic Moat Rating represents a companyās competitive advantage. An economic moat helps a company fend off competition and earn high returns on capital for many years to come.
Morningstar identified five sources that build and widen a moat:
1. Switching costs are obstacles that keep customers from changing between products, like from one companyās product to a competitorās.
2. Network effects occur when the value of a good or service increases for both new and existing users as more people use it.
3. Intangible assets are things such as patents, government licenses, and brand identity that keep a company ahead and competitors at bay.
4. A company with a cost advantage can produce goods or services at a lower cost, allowing it to undercut its competitors or achieve higher profitability.
5. Efficient scale benefits companies operating in a market that only supports one or a few competitors, limiting rivalry.
If we can expect a companyās competitive advantage to last more than 20 years, we consider it as having a wide moat. If it can fend off rivals for 10 years, it has a narrow moat. If a competitive advantage doesnāt exist or may prove fleeting, thereās no moat.
When searching for undervalued companies, those with narrow or wide economic moats often offer attractive return potential. The Morningstar Economic Moat Rating can help you identify those companies to provide superior long-term returns.
Things arenāt looking great currently, I believe a rate drop could give this a boost , canāt think of anything else now , I think lots of us were expecting something sweet in the budget which didnāt happen. I was talking to a fund manager in the city who said , itās poor practice to sit on something just because you believe it will recover , put your money to work elsewhere, good advice in my opinion, sadly , I havenāt followed my own rules or instinct in the last year , I could of made so much money had I sold up and moved on while things improved early last year and again this , stupidly I convinced myself this was skyrocket with a decent budget for builders ā¦.now look ā¦
Meconopsis, thanks for clarifying their use of the term.
I don't have access to the site. Can I assume that no home builder has a moat? I wondered if Vistry's partnership model gave them a moat, but minimum 10 years (narrow moat) sounds a stretch.
Morningstarās most definitions - https://www.morningstar.com/stocks/morningstar-economic-moat-rating-3
Their definitions require a company to be able to fend off competitors for 10 years to have a moat.
The Morningstar note describes Persimmon as a āno-moat homebuilderā.
If Persimmon is a no-moat homebuilder, is the same true for Bellway, Barratt Developments and Taylor Wimpy, i.e. all the traditional house builders?
If so, is there a homebuilder that does have a moat?
Hi all
I have 470 shares currently, purchased near the peak before the rate rises etc, nearly Ā£3k down currently. Iāve been sitting on them for a while now, hoping to have been a little closer to break even by now! My stocks and shares ISA is only worth Ā£42k in total so quite a chunk tied up here. My worry is that I could sell and invest elsewhere for a better return? Iām thinking the rest of 2024 will be uneventful for PSN share priceā¦..thoughts?
From th RNSā¦
ā We recognise the importance of returns for our shareholders and our Capital Allocation Policy, established in 2022, seeks to balance cash returns to our shareholders with investment in the business for future growth. For 2023, the Board proposes a final dividend of 40p per share to be paid on
12 July 2024 to shareholders on the register at 21 June 2024, following shareholder approval at the AGM. This dividend is in addition to the interim dividend of 20p per share, paid in November 2023, to give a total dividend per share of 60p in respect of financial year 2023. The Board's intention is to at least maintain the 2023 dividend per share in 2024, with a view to growing this over time as market conditions permit.ā
It HAS NOT been cut. Look at the Financial Highlights section of the RNS and look at Dividendmax.
The 20p in November was for THIS financial year. The previous 60p was for the LAST financial year.
Dividendmax is - certainly now - saying 40p.
Regarding the dividend dividend max says 60p persimmon page says 40p now last year we received 60p dividend in may and 20 p in November if it is only 40 p then the dividend has Been cut by 33% . Can anyone tell me 100% if it is 60 p or 40p
From Apple News - https://stocks.apple.com/AbYFLmCpMS36TVPSquUWE6w
Persimmon Earnings: Shares Remain Materially Undervalued Despite Tepid 2024 Cyclical Recovery
While the cyclical recovery of Persimmonās earnings is underway, the rebound in earnings in 2024 is shaping up to be more gradual than weād previously forecast. Sales activity is improving, but at a more modest pace than weād previously anticipated, thereby pointing to a softer second-half performance for Persimmon than reflected in our 2024 estimates. Year to date, the weekly private home sales rate on Persimmonās development sites is ahead of last yearāat 0.59 homes per active sales outlet in the first 10 weeks of 2024. While encouraging, the improvement is modest relative to 0.54 homes per active outlet in the prior corresponding period and likely holding back second-half volumes. In response to the more modest improvement in homebuyer appetite, Persimmon hasāsimilar to its peersācontinued with the use of sales incentives in 2024, which will restrain the extent to which profit margins recover in 2024, further holding back the near-term recovery in earnings for the no-moat homebuilder.
Persimmon delivered 9,922 home completions in 2023, aligning with our forecast for a 33% year-on-year decline in volumes in the face of decidedly downbeat UK housing market conditions. Consequently, full-year EBIT of GBP 355 million contracted 65% year on year and also tracked about 6% soft relative to our forecast as second-half build costs proved less favorable than weād previously expected.
We expect to lower our 2024 estimates with Persimmonās 2024 home completion and profit margin guidance tracking softly relative to our prior expectations, which factored in a swifter return of homebuyer confidence. Persimmon expects to deliver 10,000-10,500 homes in 2024, about 8% below our prior expectations at the midpoint. Still, Persimmon shares remain attractive, trading at a 42% discount to our GBX 2,300 fair value estimate, which we donāt expect to change materially after downwardly revising our 2024 financial estimates.
Two divs a year stevebt
It says 40p on the persimmon investor page and when I saw that I knew the share was dropping lots
52 buy close :-)
"I guess you received the same confusing message from DividendMax regarding the 40p?! In the RNS and the related news I read everywhere 60p like last year."
60p total for the year. 20p already paid as interim. 40p to be paid.
Finch purchasing 100k worth is good enough for me. Decent chunk, worst should be over and less face it we can't keep up with the housing shortage. GLA
Lovely jubbly
love bargains TOP up time again let me have your shares
I guess you received the same confusing message from DividendMax regarding the 40p?! In the RNS and the related news I read everywhere 60p like last year.
Almost every share I hold always takes a hit on results day, Must change strategy and sell before in future, I would be a lot richer
40p ?
Fair point Krustysmegma