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Smorris - If it’s not about WJG and it’s someone else’s post then your. Itv on the wrong BB fella. Stick to posting about WJG on this board and THG on THG’s board.
Yeah good start. Perhaps the start of Santa's rally if anyone believes in that .......
No I’m not I was referring to someone else’s post. You obviously haven’t seen it.
So, 40p broken at last.
Your on the wrong board smorris, this is Watkin Jones matey.
I was not talking about WJG. THG ...............
SP has sunk like the Titanic but should rise like Phoenix now (hoping they don’t go up in flames of course). I rate us a strong buy at these paltry prices. As said shortage of Student accommodation and that’s what we’re good at.
Morris Jones it looks like you’re on the wrong BB mate. WJG have made steady money in previous years are break even this year.
Can anybody tell me anything about Progressive Research. They write about AIM stocks and also WJG. Are they paid by the company?
With fidelity buying maybe all is not lost. They must see something that I’m not at the moment
Are you on about WJG or THG? For WJG, there is and will continue to be a shortage of housing/accommodation in this country for a while at least, and probably much longer. The key question is how adroitly WJG can transition from the zero interest rate environment back to long term interest rate normalisation.
I’m not surprised. They are a year on years loss making company. Who would ever want to invest in a company with fundamentals like that ?
THG SP has sunk like the Titanic that’s for sure. Let’s hope it rises to former glories next year - I’m big and long here and do feel the sell off is very over done now. Hope I’m right - GLA
Yes that was announced in June .. 3 years off completion
Punters hope that there are no construction icebergs along the way which might chew into those margins
"The scheme is scheduled for delivery in summer 2026 and is expected to deliver a margin in line with current target returns."
Https://www.irishnews.com/business/businessnews/2023/10/13/news/major_student_accommodation_scheme_proposed_for_belfast_s_titanic_quarter-3695682/
Already have a €175 million job in the bag.
When WJ first farmed the student accomodation market they were able to deliver product to investors with the benefit of long leases let to the universties etc .
These gold plated investments also had the added attraction of fixed rental increases and/or reny inrcreases linked to RPI.
So it was simply a case of lining up the ducks .
Acquire site subject to planning with an agreement in lease in place to Smallsville uni . Forward sale to blue chip investor to secure construction finance
Build, walk away on completion bank profit .
Sweet.
The unis soon realised they were coming out the wrong side of the deal as they were lumbered with not only the managemernt responsibilities of the property but also having to meet any shortfalls in rental voids, .if any to pay the investor
So many unis unwilling now to put themselves on the line as a buffer to guarantee the rent for the investor
Ths has led to the growth of Fresh to provide managment services.
Although an important revenue stream it also means without the uni guartantee on rent the value of the investment is watererd down .
Although appetite for product from investors is still there they demand a better yield to reflect loss of the universities covenant .
This has squeezed WJs profit so any unforseen construction rickets impact more heavily .
To diversify their move to BTR was a logical step but the thundering herd has followed and in danger of getting overcrowded
May the best man win !
Not to mention we are not primarily construction and student lets are short of supply. So by focussing growth in this are as we are we will grow cash further moving forward regardless of the general economy. So much safer investment than banks or Builders right now and near future.
Basically not managed in a balanced and truthful way, the CEO had to fall on his sword taking a 200p plus SP into the low 30 pence’s. New CEO and BOD moved around is getting all the bad news write downs etc all out there so he can then preside over a great 2 or 3 years of sustained growth. (A normal move for a new CEO). Clearly after this break even update ready to grow and deliver, the BOD know this better than us PI’s (Note the recent Director buys in the market). There are 3 prime land banks that WJG will not sell cheap so temporary delays, they are cutting costs and managing cash very well and cash is king for the return to growth. Investors are nervous, a few sellers and not popular to be into Banks (default risks from interest rates beginning to bite) or housing and land right now. However we have been dragged so low it’s clearly in a sales overshoot and a great time and price to follow the Director buys. Next results or trading update should read positive as I think the new guard have now finished sticking the negative mud on the outgoing CEO (Kitchen sinking complete).
Looks like the seller finally cleared after months of drip feeding into the market ? Those large prints at 33p and price action suggest it, but let’s see….expecting a tr1 next week
Probably the cheapest beaten down stock in the market IMO, still near half mcap in cash and July guidance unchanged?
All IMO
One positive is the directors in this share usually buy when the share dips. Shows a bit of confidence at least. There are many other stocks trading at stupidly cheap valuations and the directors don't even bother to touch them!
Indeed you are correct. £47m in H1 2023 so not a massive encumbrance.
The leases are equivalent to debt.
I bought 30k today. A company that historically did about £40m profit trading at £83m market cap and no debt.
I have no spare funds to top up sadly.
1,985,000 buy this morning