The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
There have been large volumes of inside selling totalling to 436,887 shares value at $260,467,211. If the company is doing so good why the Directors are selling their shares. They must know something we don't before hand. https://www.truebluetribune.com/2017/10/12/barratt-developments-plc-bdev-given-consensus-recommendation-of-hold-by-brokerages.html In other news, insider David Thomas sold 26,887 shares of Barratt Developments Plc stock in a transaction on Monday, October 9th. The stock was sold at an average price of GBX 653 ($8.68), for a total transaction of �175,572.11 ($233,287.42). Also, insider Steven J. Boyes sold 10,000 shares of Barratt Developments Plc stock in a transaction on Friday, October 6th. The stock was sold at an average price of GBX 651 ($8.65), for a total value of �65,100 ($86,500.13). In the last three months, insiders sold 436,887 shares of company stock valued at $260,467,211.
Shorters usually close their bet and profitted by end of the day and short again at a better price the next day to avoid paying holding charge. They made profit from just a few pence movement by shorting large volumes.
Check out SSE and CNA, they pay more than 6% dividend, their share price plummeted few days before exdiv.
Don't you get it through your thick brain, the share price will drop by the same amount of dividend payable at open on Exdiv day, This is called market price correction because the company have reduced asset after paying out the dividend. So effectively selling before exdiv or after are the same, it's just a matter different tax treatment. Because HMRC have introduced additional dividend tax, traders and fund managers choose to sell before exdiv to avoid paying dividend tax and buy back at a lower price after exdiv. In the old days we all chase for dividend and buy on near exdiv date but the rules of the game are changed.
The shares are rocketing today because report of government planning to reduce stamp duty for first time buyer. Finally the government realise the drop in revenue due to increase stamp duty that have frozen the property market.
Letting fee ban have minimal effect on Foxton because they are dealing with premium properties with annual rent up to 800K per property in Kensington, Mayfair and Belgravia. Foxton have the largest premium properties pofolio, so �500 letting fee is negligible, by the way Foxton charges the landlord on the letting fee as well as the tenant. They gain all the premium clients with their fancy decorations and facilities.
You belief in those investment bankers, they only raised the target after the share went beyond 578, any dummy can do that. I do think 578 is about right, 649 is average consensus, so 649 around 23rd and 24th then back to 578 shortly after exdiv.
There are 98% shorter waiting round the corner at 683.5.
Foxton shares are going back up closer to Q3 report in a few days time. The property market is bad for buy/sell because of increase in stamp duty, but not for foxton, 50% of the business is in letting, more people are renting instead of buying because of crazy high house price, stamp duty and Brexit uncertainty. so foxton letting business have significantly further increase recently. Foxton is not like other estate agents, they focus on central London and have large number of premium properties on their pofolio so their profit margin are higher than others nationwide. The recent drop in share price is due to other estate agents doing really bad but for Foxton it's a different case, I do agreed on the fall in profit but that is already priced in at 90p. The company is healthy, it has no debt so eliminate any chance of going into administration. Theresa May is forced to guarantee the European citizen in the uk inorder to Proceed further in Brexit talk. Once this is confirmed, Foxton will be back in good profit again as more than 50% of clients are foreigner in central London. Just hold on tight for the ride up.
I do not need to ramp up the price, thanks to people like you chasing on the price, all I need is placed a short at 683 and wait for the profit, all those traders are doing the same cashing in from the small fish. The sentiment is 98% sell and only 2% buy on the bet order indicator. So 98% are waiting for you round the corner. I used to be like you standing still on share and ended up getting slaughtered, down by 35k. But now I start running around, Now I am up by 55K. That's how the big boys cash on the small fish.
Inflation reported to have further increased, so more likely for Bank of England to raise interest rate in Nov. Bdev will be heading south once the Bank of England decision news is out.
You have been attacking me from the start, well you have declared war so let me teach you a lesson. Yes I sold my yesterday at 678p to guarantee my profit. Thanks to people like you chasing on the share, I have made 5K this morning by shorting at 683.5 and closed my bet at 672 Keep it coming, send your money my way. Thank you very much!
The share price will bounce up and down until 24th. I sold my yesterday for a guarantee profit and cashed in my dividend since the share price will drop by the same amount or even more on exdiv day. I am a higher tax payer so not going to pay 32.5% tax on my dividend. I am using up the �11K capital gains tax allowance instead.
People are crazy chasing the share price on the news of extended help to buy scheme, if you look at the help to buy website you will understand what is it all about. This ten billion pound is divided into numbers of schemes, the private sector only benefit from a small fraction of the scheme in terms of 20% interest free loan for 5 years to help you come up with a deposit to buy. Most are for buying council houses and affordable discount homes. Bdev builds good quality homes, their share in this kind of scheme is minimal. Bdev does kept on topping up their land but at a much higher premium price compared to few years back. So future profit margin are much lower. They are still building on cheaper land purchased few years back because of planning reasons, therefore profiting from it recently.
Ten billion pound on help to buy is nothing after dividing into large numbers of house builders in the Uk. Most are for building council housing which Bdev have minimal involvements. Bdev mostly builds private houses, the private housing market is subdued by increase in stamp duty and Brexit uncertainties. If Boris Johnson becomes priminister, he will not allow foreign buyers. 50% of the market are foreign buyers at the moment. As I indicated earlier, Bdev is doing so well is because it's profiting from land they bought a few years ago, once those land are used up, the profit margin will greatly reduced.
Yes we are all selfish, I only start sharing after I sold today, it's like military secrets, haha. Well, my view is correct, the share price is dropping every minute, I say it will drop to 650p and then 585p a few days after Ex-div. it's every man for themselves, once you see some one running, you run too, the casualties are the people who stand still and get stamp on.
Yes Bdev is over priced, it's all to do with supply and demand, from fundamentals, it's only worth 430p but with its good performance I think it's worth 585p. I kept the shares until today because I see that the company have bought land a few years back and are profiting from it. But this buffer is used up so there will be a big drop in profit next year.
I bought my at 460, sold at 678 this morning, will consider buying back after Exdiv for much lower price.
Why wait for the dividend, the share will drop by the amount of dividend payout at open, this is call price correction. Fund manger rather profit from capital gain rather than the dividend since the price of share will be reduced by the dividend payout. Capital gain in fund do not attract tax within the fund until the fund holder sells them.
let the market be the Judge of who is right in this.