Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Anyone know why sp is doing so well in current environment? I thought the base metals dropping price would dent sp... Is it maybe because coal still doing good and Kestrel income is going to be pretty good? I don't normally comment on the vagaries of sp moves, but APF seems to be countering global downtrend :D
As DLG earns £, it's earnings therefore go "down" with the £, so no a weak pound is bad for DLG. However, with 2 year Gilts heading north of 3% I'm relatively optimistic about DLG earnings, as although their combined operating ratio is probs gonna be above 95%, they will make up for it with interest earned on bonds :)
Hi Clued, SSE sold it's stake in Scotia Gas last year which bumped up earnings, SSE's core earnings are still expected to grow this year, but if you adjust the earnings without the SG sale then current P/E would be around 18. That's why using P/E without adjusting the earnings for exceptional items is somewhat misleading :)
smartpants, it doesn't take a genius to say, " ahah UK housing stocks like BDEV going to get smashed as interest rates rise and inflation skyrockets!" Investors don't decide not to buy a company just because the share price might fall for the next 6 months, they know they can't time the market. Investor's look at the fundamentals, I.E. doe the UK need more houses?> YES Does BDEV make houses in the UK?> YES Does BDEV have a solid balance sheet and credible management?> YES I mean if your going to buy BDEV today the question you should ask is, is BDEV going to give me a good return on my capital over the next 5, 10 years? Not, OH NO ITS A BEAR MARKET PANIK PANIK
Clued, I completely agree! People before profits, however, in SSE's case I would class them as a fair and decent business. In general the excess profits they are making are not of their own making. I would condemn businesses such as Vitol and Trafigura, which are private Swiss commodity trading companies who are making $Billions just by buying and selling gas and oil futures, fuelling the fire of supply and demand in forward energy markets. That greed and avarice needs to be stamped. For SSE to announce a 20% donation of profits to poor families would be a nice gesture, but in reality would only go into the pockets of greedy corporate trading companies who know exactly how to game the system.
I am deeply saddened by the state of the UK's energy prices and am certain people will die this winter. Alas there is nothing we can do, as the saying goes, Hard times make strong Men, Strong Men make good times, Good times make weak Men, Weak Men make Hard times :)
I mean I'm extremely bullish UK house market long term, it's just a simple supply and demand problem, BDEV being one of the largest builders, with an excellent balance sheet, seems like a good long term hold. Of course short term vol will shake out paper hands, but Britain needs more houses, and banks need more people to take out mortgages. GLA
Strictly,
Yeah my back of the envelope calculation is 30% liabilities for BDEV and 22% for BWY, obvious BWY wins that, but I wouldn't completely write off the Wilson Bowden Goodwill asset, surely the brand still has some value?
Yes I am just looking to buy and hold, so a bit different to your game :)
Deadly
Hey Strictly,
Thanks for those thoughts on the difference between BDEV and BWY. I can see where you are coming from, BWY does have a much better track record than BDEV, especially re 2008, which is especially pertinent given today's housing market. I also agree that BWY P/B is more attractive than BDEV, but I also like how much cash BDEV has currently.
I know that BDEV has almost £400 Million of liabilities due to the cladding scandal, and BWY exposure to it is far less at £200 Million or less. However, I am going to buy BDEV as I think it's going to provide a larger growth opportunity in the future. I understand that in the past it was completing over 20,000 homes a year and was Britain's largest builder for a long time. I think PSN has some issues currently and see BDEV taking advantage of the growing demand for housing and growing house building up to 20k again.
Now BWY may provide better % returns, but for me I think BDEV is a better risk/reward current play, alas I am a novice in this sector, so am doomed to be wrong, but I'll take the dividend!
Deadly
They literally just released a statement condemning "profiteering in the North Sea" and have outlined how a further windfall tax will solve all of the energy cap et al. problems. Kinda feels like a declaration of war on capitalism and free markets, but this sub seems to ignore how dangerous this kind of talk is