The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Thanks for the link Meconopsis, as you say well worth a read. TBH though, the more I read it, the more I wonder if it will work at all. Will Barratt, as the senior partner, try to run Redrow as a volume housebuilder, cutting corners wherever possible, and losing sight of the "premium" USP that Redrow aspire to? Will traditional RDW customers be happy to pay a premium price still, knowing that, in effect, they're buying a Barratt box? We'll have to wait & see. It doesn't look like a marriage made in heaven to me though I'm afraid.
Thanks Strictly, interesting commentary as always. Can appreciate how difficult yesterday must have been for you. I know if it had been TW., after a 16-year relationship with the company, I would have found it extremely unsettling, premium or no premium. FWIW I still think the MMC could get involved, no doubt we'll find out soon enough. Hope for your sake that BWY continues to evade the grasping hands of larger, less nimble, developers.
Agree, interesting analysis & food for thought. I guess everyone has their individual positions and reasons to be invested here. For me it was to diversify from TW. where I am a long-term (2008) holder sitting on significant gains but looking for decent dividend income. I chose BDEV and PSN but my timing was terrible and both have been underwater virtually from the moment I bought them.
Whilst PSN remains a basket case & the yield has dropped dramatically, things were improving for BDEV as both SP and dividend improved. Now the dividend has been slashed and the SP is heading south again. I'm not convinced they will be able to drive the kind of economies of scale that are required to get the yield back to what it was previously, let alone improve it. I appreciate not all investors here are income-seekers, but I suspect the importance of the dividend to investors is much more important than perhaps the Board realised when agreeing this merger.
So, for me personally, I can't take any positives from it I'm afraid. I have yet to decide whether to stick or twist.
Oh yes, thanks for the correction Meconopsis. I don't know how that % sign slipped in there, it should have read 1.75x. Apols also to buller for any confusion, senior moment...
I wouldn't worry too much about the whole "buys vs sells" stuff tbh. If you're a trader it's vital information but for long-term investors it's irrelevant. The bid has held at 66 pretty much constantly the whole calendar year so far, today we're XD & it's now at 65 so not too bad all in all. GLA
Nice lift this morning, hopefully a sign of better things to come. Look forward to results day on 22nd Feb with positive news.
No, it clearly says in the text they are reducing dividend COVER to 1.75%, which is actually an increase from the 2% the previous year. It doesn't offset the reduction due to lower volume, profit etc. though.
The contrast between TW. yield and BDEV now is pretty stark. TW. c. 6.5%, BDEV c. 3.0% (assuming 10.1p final here). TW. base their dividends on NAV so unlikely to fall to this level.
Do you have any thoughts on today's developments strictlybricks? Always value your insights. K
It's an interim, but the last interim was 10.2p
...and it was loaded with debt, but the timing & terms still seem pretty poor for BDEV holders. The economy is far from out of the woods yet so who knows what's around the corner?
Hope they don't get any stupid ideas here. Rubbish deal for BDEV holders IMV. Hope the MMC quash it before it gets any further.
Reminds me of the Taylor Woodrow / George Wimpey merger which almost put them out of business. Difficult to see positives from the BDEV side.
Drusus, there have been plenty of twits on here over the years, not many of them (including me) are worth half a million quid on a couple of shares. So you're not doing too badly.
It's not really a risk potnak, I'm only using the funds I banked when I top-sliced. My entire holding is free running. It's because I'm risk-averse (having had my fingers badly burned in the past) that I top sliced such a large % of my holding, despite manic pressure on this board and elsewhere to hold. I'm having to raise money because I reinvested in growth Funds in my SIPP, so I'm skimming off them to buy here at these ridiculous prices.
I wish they would slow down a bit, I can't keep up! No sooner has my Buy at 45p triggered than we're looking at 40p. I'll need to raise more funds though because it's 10,000 every 5p from here. Any sniff of good news, real or rumoured, will see this flying back up. Not just yet though, please.
I guess it's about timing as much as anything MattyBoy. I got in early here & top-sliced when the going was good. As we've discussed before, I put some of the winnings into GGP where my average is 23 because I was too late. So, for me, this has been a fantastic journey whereas GGP is a bloody nightmare. Presumably it's the opposite way round for you, but maybe for the same reasons?? I'm sure you've more than covered your losses here in GGP...
Rayboy, I've had loads of other shares that have gone wrong big style, this one I've been lucky with so far.
Life's about choices, for those of us lucky enough to make them. You could have sold some for the equivalent of £4.50 a couple of years ago & you chose not to. The opportunity was there.
The opportunity is on the buying side at the moment. You may look back again in a couple of years & think, I could have bought a load more when they were 45p...
Just my opinion, of course. Everyone has to make their own choices. FWIW, I'm buying every 5p dip currently.
I'm in GRF too monkey, have you been watching it for long?