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"In 2024, Persimmon expects to use its GBP700 million revolving credit facility and to move from an average net cash position to an average net debt position. "
This is a big negative to me, and it's why the SP is marked down because of the poor update.
"Maintaining the dividend which I thought was very positive"
I'm with Krustysmegma. In the current climate I'd prefer the company to preserve capital as Barratt is doing.
...maintaining the dividend whilst planning for net debt this year though, does that make sense? Everybody likes a dividend, but only if it's sustainable.
Maintaining the dividend which I thought was very positive
Market not enthralled with results. Wasn't too bad but on the other hand not much to shout about either. Full yr (and next they say) @ 4.5% on yesterday price. Pretty average by FTSE standard but well down on what we have got used to with PSN. With a wait until June for the next ex div and it only being 2.5% ish on yesterday price, maybe people are bailing out for greener pastures. It has turned more of a recovery play rather than income. Let's see if she recovers....
I guess the unknown is the total legacy from remediating buildings when there is such a long exposure period. Add to this the recent change for non combustible buildings now having an 11m height not 18m height means councils will be looking at buildings between 11 and 18 M in height. If you seek, you shall find. With 40 x the number of multi occupancy buildings between 11 and 18 M, the unknown exposure will be around for a while. As a share holder hoping the pent up demand evens some of this out
@driftking
The UK house builders were strong armed by the snake Gove to remediate the cladding c**k ups, when it was the fault of British standards, regulations etc, so the bill should have been picked up by the taxpayer.
however (rant over!) this would have dented the price for the last year, until the works are complete, it is only estimated how much this will hamstring the builders. I expect there are other factors, as stevebt points out, and the economic cycle does not favour house builders ATM.
OIL wise, Shell and BP were amongst the first shares I bought in my SIPP many years ago. "Never sell Shell" was a stoke market adage, well I did when they slapped the windfall tax on 'em, sold NG, and SSE as well 'coz these Tories are bad, but Labour may well, if not re-nationalise, windfall tax anything that shows a profit and doesn't move!
Who is interested in states house builders ? two different economies
Look at last 5yrs that’s nothing to do with interest rate rises .
KBHomes was on a front footing from 2019… still outperformed 196%!!!! To being down 39% in 5yrs??
I'm expecting the share to drop more as that's what happens in todays market when people annouce trading udates. Maybe the announcement of a good dividend could pull this share around? If they annouce a minimum 60p dividend it means over the full year it would of cost them £255mln which is well within their profits with plenty left over for them to keep for some little share buy backs?
I read somewhere that the US market isnt affected as much by interest rate hikes as its normal for people to take out a 25year fixed rate mortgage.
So, not here to put a downer on this stock, but can someone explain to me why UK house builders have underperformed US counterparts drastically?
KBHomes has risen 196% in 5yrs ( US biggest housebuilder $5.2bn ) opposed to both BDEV & PSN
PSN down 39%
BDEV down 21%
Or is it just US & UK equities in general?
Iv been in stockmarket since 2002…
Oilies are the same
If we compare some gains here v UK stocks from 1994 to 2023 October 26th
XOM +750% plus dividends( USA)
SHEL 144% plus dividends in that period
BP. 320% plus dividends
CVX. 700% plus dividend's (USA)
OXY. 5800%! plus dividends
Me too, investing.com and bar chart still have this as a buy/strong buy
I am happy to buy at this price.:-)
This is still not a Buy, sits at 53 on RSI.
The house sales are already picking up and all we need is lower interest rates and the housing market is off again. I have every confidence that when the sales start jumping up we will see £30 plus in the next five years but more than likely sooner.
I did hold your optimism but now I’m just not sure , why are you so confident of a big improvement in a couple of years , just housing demand?
No I don’t have all my shares in my ISA , I will have to sell at the end of the month to transfer my 20k into the ISA , I’ve still got 100k to I want to get moved over in the next 5 years , whether I stay with PSN or go back in to oil I’m not sure yet
Christofer, I have spent most of the money I had to invest here so my top ups now are merely £509 a month into a sipp but I really want to sell £30k to move into my isa and after the 6th April the capital gains tax is only £3k.
I have deliberately not traded this share in my share account as I have an average of £14.57 in that and any trading would of lowered my average making it harder to fill my isa up on April 6.
I a constantly going to buy in here when money goes into my sipp and I think we all know in 2 years time the price will be much higher and I’m happy with that time scale.
Since I plan to hold for a long time the price of the share at the moment isn’t that important to me.
It may be ok for you as you must have all your shares in an isa but I still have 4000 shares in my trading account which I would like to move into tax free accounts and the more this rises quickly the longer it’s going to take me to get them out.
Place
Now 1394 all over the price
Well that's gone down well with the builders!
1376 atm
No offence stevebt but it seems ongoing that you want a low SP , is there ever going to be a stage when you want it to rise ? Every month you seem to say you want it to stay low or drop . What’s the point in investing more and more money if the SP never rises , I’m sure you invested a large sum in this when it was over £20 a share , surely you want to see a steady recovery? At the moment I see this going nowhere, there doesn’t seem to be much good news on the horizon, unless I’ve missed something. I really want this to go over £15 , whilst I’ve made money , it feels like it’s rather stale , maybe a decent announcement on the coming dividend maybe kick start it , equally, bad news could send it spiralling downwards again ….
Please educate me anyone if I’m wide of the mark . Cheers
I don’t want it rising too much before April 6th as I have £30k to sell out of my share account and move into a sipp/isa, or possibly more if they anounce an increase in personal yearly allowance for isas today..
Its amazing how the market moves on expectations will we see a sweeter to day I DONT think we will :-( so maybe we will get some at bargain prices :-)