RE: This week's negative sentiment22 May 2021 10:35
Good morning All
Me I believe that production will not increase massively due to lack of apprentices.
Looking at alternative quicker builds , cladding ( they have problems there and maybe mortgage probs)
Timber frame and prefabs ( probably mortgage and guarantee probs)
Traditional build is proven the best!
So this fund raise early this year is very interesting!
Point 1,this means they can buy huge developments , which means bigger profit margins.
Point 2,they want to get to persimmons profit margin of 30% !
Point 3, this will take time the large development sites they purchase now will not take affect for at least 2-3 years.
So I can see this ticking around £1.60 -£2.30 for the next couple of years.
On the great side you have a nice divi likely to improve year on year and a starved market.
So in my view good safe share for your portfolio!
Just my opinion and open to all views.
Good luck all and happy trading