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Just wish that the SP would settle down. Always large movements for no apparent reason unless there is a big seller and they are reducing the SP towards the end of the day. I must admit I thought that 540 was about the level needed to be on par with its peers. Crest should be classed as a medium size builder so looking at the press the budget should be for this company.
i would predict that alot of buyers are holding back on the" just in case" the budget gives me a better leg up to buying my first property. Once the budget is known l think apartments will be sold with a quick hand out from the builders. Also the announcement that the Housing Associations can now raise more money to build will help TEF.
What a strange week. Good for the wallet but why did the market act so weird to an update that did NOT contain any new information that would have spooked the ordinary investor. i did believe that Crests building regions had already been taken into account due to its low SP and PE compared to its peers but the only negatives was London and a reduction in site sales from 0.81 to 0.77 which, as Josh mentioned, was mostly caused by the increase of sites. They have also started in the Midlands which would also take a time to wind up. Overall pleased with the SP recovery and look forward to the budget to see if thehouse building sector is given a further leg up.
I think a slight overreaction to CRST 's trading report. Figures good just the normal comment regarding central London. That should have all been priced in by Redrow report. What was good was the statement regarding sales below �1m in London are robust.
This year will be interesting in comparison between CRST and BVS. This years sales appear to have started strongly and the Market is expecting around eps 74. We have BVS which has reduced its targets to overcome its ills expecting around the same EPS. However, for BVS we have a PE 12 AND a SP 1122 and for CRST we have PE 7.8 and a SP of 492. Some how the market appears broken just like the housing market which all like to tell us.
The stock market must have a poor view of this company by the way the SP has been moving over the last few days. Trading update on 15 Nov and it will be interesting to see what reaction investors/funds have to them. This is a share that is underrated with an PE falling to around 6 by 2019. Since the last report they have opened in the Midlands which has added to the coverage that might take some slack within the South East areas. Next week we also have a couple more building with trading updates so we should start to see how the section is operating, with the following week the budget, which appears from the media to favour house building as the Government tries to bring the young on board.
After the Market reaction to BVS this morning Crest becomes even better value. With Crest going X -div on 22 Sep by 11.2p, PE's/SP become almost lowest in the sector. Compared to the sector hitting highs this share is still 15% below that level and lowest capital gains over the year. This company has the same business model as TEF becoming involved in IPRS which for me is the future under the present government thinking and lack of clarity for the Help-to -buy policy.
Crest was the first house builder to report after the general election and mentioned the uncertainty that might prevail with in this sector regarding the unexpected result. It appears that the market has reacted in an unbelievable way even when others have stated similar thoughts. Unless there is a large seller in the background this share is quickly becoming extremely excellent valve, especially if the new Midlands division comes up to expectations.
Mimisters are changing the national planning rules to offer tenancies for three years. They would also like schemes such as build to rent to come to the front to tackle affordability. So here we have a company that is looking and thinking the same as the government. Contacts signed with further likely in the near future. So lets look at what the investment thinks of the BODS forward thinking of this subject. Nothing, TEF falls while other housebulders climb. When will funds lock onto the hidden gems that are there for all to see but are brushed aside without a thought.
All builders should have been buying shares rather than special divs. EPS would be increasing with less shares with PE reducing. This would be a better backdrop if the market and sector did collapse. With EPS increasing it would also have been increasing your normal div. RDW has decided to go down this route and is proposing to buy 10% of its shares back which will be decided at its AGM in Nov.
Looks like CRST is falling to shake hands with RDW again. Most RNS's indicate that funds are adding to their holding but someone, IMHO, is selling heavy. Only 21 days until trading update so it will be interesting to see the Markets reaction to the results after those excellent BWY figures.