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Excellent news indeed; tw may now have a chance of achieving what it's capable of with Elliots onboard and redfern out. The gap between tw and bdev, PSN tsr has been widening for years under redfern's Inferior and weak leadership and it's time to close the gap under better leadership. Onwards and upwards, great potential here now redfern going.
The market is after total shareholder return- hence why tw has underperformed. Redfern hasn't delivered the goods.. look at some of his recent decisions they are laughable. E.g major redundancies just as the labour market tightens and sector demand rockets, talk about bad timing! Then he had to pay extra to recruit many back! Worst CEO left in the sector.
You could have entered sip and sharesave schemes in almost any other builder and you'd have done even better! Pete redfern has done nothing- the sector has been supported by cheap credit and demand side stimulus, aka htb. Also not true about PR saving the conpany- he almost tool it under taking over Woodrow at the peak of the market. It wasn't him who saved it, it was PwC and the sale of the American arm. Fact is Peter redfern is a poor CEO- look at the total shareholder return over his tenureship- almost worst in sector.
Agreed, well said.
No, I've been in and out this share for over a decade. I guess you're referring to the activist Investor Elliots who have taken a position- they too clearly saw Pete redfern's incompetence. The total shareholder return speaks for itself.
Fantastic news that this entity will now see the back of a very poor CEO. Pete redfern's performance has been bottom quartile at best, in terms of total shareholder return. Glad to see the back of him- a weak CEO, and specialist in underperformance, with a proven track record that he does not have the ability to driver returns even close to sector peers- the gap between persimmon and bdev has widened significantly under his embarrassing tenureship.
You aren’t calculating EPS which is a fully audited figure and factual, your methodology is highly floored for a number of reasons. The reason for the difference in book value growth from one period to the next that you highlight (after considering EPS and cash payment through dividend) can be found by simply looking at the OCI line in the financial statements. In this instance it is almost entirely explained through a large actuarial loss in the defined pensions scheme under IAS 19, which is out outside the companies control and down to actuarial calculations. This has no bearing on the financial performance of the underlying business and is thus excluded from EPS calculation by definition, and rightly so, which is why you have been unable to tie the EPS less dividend into the book value growth. Furthermore, ROCE is a superior metric to ROE as it considers the different financing structures of an entity where as comparison of ROE does not, so it is a very poor comparative compared to ROCE. CRST ROCE is c 200-400bps higher than both BWY and RDW indicating a more efficient use of assets to generate returns. On an EPS and yield basis, CRST is far better value than TEF at current levels, and better value than BWY and RDW. Part of the differential is explained through the risk future earnings are likely to come under as evaluated by the market. At current levels the market understandably has some concerns over CRST London/southern focus compared to more widely diversified builders. The choice as an investor then comes down to risk reward preferences, the higher the risk the higher the potential reward. I hold all three of RDW, CRST and TEF and adjust weigthings in line with financial valuations; yesterday this swung heavily in CRST’s favour as it hit 470p, at a current level of 510p the anomaly has now narrowed significantly- as one would expect in an efficient market.
So that is the 1,000,000 proposed buy back completed, and the price under 60p (albeit marginally) again! Wonder if they will increase the buyback. Peculiar RNS the other day too with that Hardman & CO broker publication; they certainly seem desperate to boost the share price by any means necessary!
Partly due to CRSTs increased geographical risk; the market is in effect saying it doesn't expect CRST to achieve broker consensus EPS in the years ahead given its heavy london/southern weighting. Where as for BVS, coming from such a weak position, it expects its performance to increase considerably. That being said the valuations are still well out of alignment and CRST is by FAR the better buy.
absurd over reaction here today. The only negatives in the statement are the sales rate which edged down to 0.77 per outlet per week from 0.81 in the prior year (some of which is caused by the increased number of sales outlets rather than weakening sales rate itself), and the fact that the London market has softened, particularly for properties over �1mn. Hardly warrants the 10% drop we saw at times today and I bought some at 481p accordingly. The numbers put CRST as the best value pick in the sector by some margin. 2,935 units * �391k per plot yields a revenue of �1.148bn which is more than broker consenus of �1.096bn. EBIT margins are expected to be c. 19.5% yielding EBIT of c �224mn vs �221mn broker consensus. These numbers also imply EPS for 2017 OCT year end will come in at c. 68p yielding a current P/E of a mere 7.2 x with a yield covered 2 times by EPS of 7% making CRST the best value in the sector (followed by GFRD then RDW). Adding to this the book value will come in at c. 279 +58- 34 = 313p per share giving a p/b of just c. 1.5 times, very low given the uper quartile ROCE of c. 30%. Use this volatility to add, superb value today particularly for anyone lucky enough to catch the bottom which was a rediculous 470p!!!
I'm still waiting to transfer out of dumb investor too, but I only initiated the move a month ago! How long have you been waiting for exactly? And can you still access your account? I can access and trade in mine so I'm not too bothered, moving to Iweb (halifax own it). Threaten them with the financial Ombudsman and compensation payments
Another 100k shares purchased at 60p! That is 75% of the proposed buy back volume now exhausted.
Clearly 60p they are trying to defend as they bought another tranch at just over 60p! That being said we are back below 60p now, so I will expect another RNS to confirm more purchasing activity but this can't continue long as the pledged buy back was only for 1,000,000 shares, 65% of which have already been bought!
Back below 60p again, I expect INL will be buying some of their own shares today again. I'd be surprised if we don't see an RNS to this effect shortly. GLA
Completely agree. The market has been expecting �44MN pbt and the guidance suggested pbt will just be "over �40mn". That puts TEF on a PE of 8.4 for 2018 with RDW on target for 8.1 at current priced, with both forecast to fall to 6.8 and 6.4 respectively by 2020 with a similar yield over the period. Accordingly RDW still looks better value than TEF at current levels. Myself and 2227 identified RDW as being a superior play a few year ago when TEF and RDW were the same price- now RDW has accelerated a whopping 59% ahead of the former, and even now still edges it on value. That being said, the real value is now at Crest Nicholson which, at current levels, blasts both companies out the water in terms of value with a PE of 6.3 a year earlier in 2019 but with a far larger yield in the interim.
Hi Bazz, Yes great 25% rise over the last few weeks from 52p lows (managed to top up with a few more at the bottom so delighted). Still looks too cheap so wouldn't be surprised to see 70p this year or early next, news permitting. Share buy back scheme should hopefully prevent us from dropping below 60p again. GLA
Luke warm update with cautious guidance to just "exceed 40mn profit before tax", when the market is expecting well above �40mn at c. �44mn, hence slight drop.
Straight in there, no messing about, with a purchase of 118k shares yesterday! INL trying to send a signal to the market..
Interesting RNS; Bods clearly feel the share price is substantially undervalued to embark on a share buy back programme.
Far too cheap IMO- nearly 20% discount to forecast net assets for June end and nearly 50% discount to forecast EPRA values. Yield approaching 3% and EPS of 6.8p expected in results this month, with growing order book, landbank and homes under construction. Unjustifiable IMO- use the opportunity to add. Just seen they have revamped their website too: http://www.inlandhomesplc.com/