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At about the time of the drop there was a sell of 140000 shares which could explain the reason. It started with a 37k sell followed quickly by a 80 and 12k which it appears caused the drop from 550 to 531. Josh, I agree with you regarding fundamentals for this company. time will time..
BVS planned growth up until 2016 figures is looking for margins around 20%. Reading of the trading update they still expect to be around that figure in 12 months time. Revenue appears on target for this year and the firm expects tol increase the ROCE which has been one of the problems compared to other builders. Instead of the100p EPS for this year we may be slightly below, however, when the high margin land comes onto tap during 2016, as expected, we should see an increase on the brokers estimate of 123p EPS for 2016. Swings and roundabouts. The City did not really think outside the box on this trading update as I think they are looking for any excuse to take profits. In 2016, if I was a BOD, i would be putting all my efforts into the high margin sites to make a point with these so called experts in their ivory towers. BVS also has a NAV of 1.37 which is the lowest in the sector and below historical valves and so in my opinion under valved.
Bvs fundamentals are ridiculous for a growth company. Future PE of less than 10 and a NAV of 1.5 or less. Something has spooked the market in the last 2 days, except Liberums report, for the market to act with such stupidity. PSN 's trading report was excellent stating customers demand for housing with controls in the mortgage industry having a good restaining influence on the housing sector. Everyone agrees that interest rates , when they arrive, will be implemented slowly and will have little effect on the market which, for many, obtain mortgages at fixed rates.
Someone is selling again today. Redrow is now on a future PE of 9 and 8 for the next year. With the report from Bellway this seems a wee bit low. However, when you look at the overall sector all builder shares seem to be down 10/15% from their highs.It is almost as if the market has de-rated the house builders sector and looking at the NAV of each company and pushing the SP figures to reflect historical valves of 1.5-2 x book valve and forgetting about the PE's
Someone is treating this share like a football. They push the SP down to 994 then chase it up to 1060 , then kick it down to 1019. For a company on a forward PE of 10 and 8 this SP is being tossed around like a small boat in a storm
This sector is performing great unfortunately the market is really having a clear out today. BVS is really getting hit. Now under £10. reminds me when the shares went down to 750 for no reason. RDW is now down 10% from the high. Investors are really nervous and taking their profits.
TEF and Redrow have the same broker. Peel Hunt. They have forecast for the coming year TEF at 550 and Redrow at 590 which is understandable with the future EPS of both companies. However, this is not what posters on the TEF board are discussing, it is about future growth. If you read analysts reports all mention future growth from small to large. You have been explaining that Steve started Redrow with next to nothing, but look at it now. TEF started in 2000 and is now in the progress of growing. This is way the likes of Gleeson/ TEF have the opportunity to grow that much quicker in the future compared to companies that have gone through that phase and are now established. To highlight this was the acquisition that added £500m to the pipeline in one deal whilst having taken 15 years to reach £1bn. As I have mentioned I have shares in both companies but your constant comments trying to compare the two is ridiculous as once again I say chalk and cheese.
I also own shares in this company , however, this builder is the only one going backwards today. At a PE 10.5 and future PE 9.5 the market appears not to be putting much faith into this company. Cannot see this breaking £5 until the next report. Hope that I am wrong
On Friday 101 company shares were traded whist the market was open instead of instructions to wait until closed. This, I understand, lost that company millions. Bovis could have been one of these companies as the shares traded at the end of that day was more than a normal days transactions leading to a sharp fall in the SP. It. will be interesting to see what happens Monday morning.
What are we saying discussion not allowed on this board? Bull or Bear markets are a fact of life and ,at the moment , we are close to a bear market if uncertainty prevails. I hope not and that the traders, when back from their holidays start buying again as at the moment there is so much money on the sidelines .waiting for a home. Time will tell. .