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Nomad,
I think what he was alluding to was not that houses can go substantially up, as you so perfectly demonstrated , rather that when they do people have an expectation they will substantially go down , but is usually one way traffic and that is much less likely to happen ......welk, at least in the UK
Ah 1987...those were the days, I bought my first flat in 85 for 20.5k ...wish I had sold it for 66k lol
Not sure it necessarily means that. In any case, I have had funds from sale of another share burning a whole in my pocket for a while, and having watched this share daily move from well above 20 quid to where it is now, have decided to bite the bullet and invest the whole 10k in PSN.
I have watched all the comments on here and elsewhere , some negative, some positive, but on balance decided at the end of the day that the fundamentals in PSN are just to difficult to ignore or dismiss, and in the medium to short term should prove to be as solid as an investment as I am likely to find.
Sure, it may not have completely bottomed out, but in my view is a lot nearer the bottom than it is the top.
We will see
My my my, there sure are some pessimists and/or mischief makers in these chats. 5 days ago HSBC pretty much downgraded all the Housebuilders generally (albeit by different degrees). Only a few days later Berkeley makes them look like dicks, and our new PM announces (unexpectedly) that we need to provide homes "faster"...!! and you guys think this is not significant
Good article....I think one of the most rational and pragmatic brief reviews I have seen in a while ...or did we pay him to write that lol..!!
I agree with most of what is written, and as I have complained about before, think at least some of the share price depression is not down to any fundamentals , and rather is down to our CEO, who seems incapable of making a positive statement about how well the underlying trend is within the company.
Seems he only has to open his mouth and the market makers take an instant dislike to what he has said, why the BoD chose not to clearly set out how current issues were being dealt with and failed to provide guidance about future dividends I do not know ! For sure that failing will have been taken to mean something.
Many thanks strictly,
Thanks for sharing, I appreciate these are already your guidelines, but I can see the majority of these appear a very sensible set of criteria, that will help you avoid any "wrong turns". I can imagine how number 4 applies to housebuilders, but perhaps not necessarily to other markets. Love the 12th one you added !
Strictly , I have several investments in Housebuilders going back to the days when PSN shares were around a fiver , albeit I also invest in Energy shares and Banks (sadly).
However, any and all information that has a tried and tested formula is of interest to me, and I would be happy to hear your criteria for investing if you are willing to share it.
I am sure you are right and they will be queuing up to shoot it down , but for every one on here that does, I am sure there will be 10 who agree with at least some of your views (even if they do not express it) and will find it useful to consider what you have used and learnt over the years .
You will know the old adage about bricks n mortar being a safe haven for your cash, and over the longer term I think this is as true for the companies that have a business in "bricks n mortar", as it is for the physical ownership of property (at least up to a point).
TW have very similar issues as PSN , but they managed to issue a carefully worded positive message that all was well and lo n behold the share price moved 2.5%..!!
TW managed to cover the lower number of completions very nicely ....... Psn BoD take note...that is how you do it ....lol
Hi Steve , I expect you are right about the future , but have a listen to our current CEO talking at the AGM, and then let me know if you think this guy will win over the market. If you haven't heard him, I would be interested to know what you think ??
Have a look at MJGleeson trading statement today, their results are good but they will not match persimmon ......but looks like market took it as positive , that is how you do it lol
100% Right. The BoD do not seem capable of managing the Markets aspirations as they should. I think, as many seem to think, that the trading statement was not particularly bad, and still it bombed, they really should be able to issue a statement that sends a positive message , and as you say, if there are issues explain how they have been ...or are... being managed.
I am sure if I mention our old CEO it will evoke some emotion over his "reward package" , however, you gotta give it to him, he was more than up to managing the market and everyone's expectations ....something that I think seems lacking now.
good job if you made a few bob......hahaha, that is true of all us shareholders, we are never 100% happy....we bought too high, or sold too low....! Well, I will take this as one of the good days, picked up a nice Divi, and made 6% on a good chunk of shares in one day ....Hundred times better than when the market goes the other way and bites you in the a** .
The other question is ...will it get back to 22.00 by the end of the day .....hmmmmm!
Good luck buddy, many people cannot make up their mind and end up choosing status quo and doing nothing. You did the important thing...."You made a decision", and sounds like you are comfortable with it. I sold a sizable tranche yesterday, and am hoping I can buy them back when market opens ........Lets see :-)
Steve, unless I am missing something, if GLP started the short at 22.70, then all they have to do to be in profit , is buy the shares at 22.69 or less, given where we are now if todays price was driven down by the value of the Dividend and they bought shares at that price to close the short, they will have done very nicely.
I think also there were many shares got pasted today, but PSN seem to be pretty resilient and encountered a lot of resistence to go below 21.00 (again), it is always possible of course, but I doubt it is gonna push down through the GBP 20.00 barrier. Even although it has not dropped far enough to screw up my plan to sell some and buy them back after Dividend date lol
Just my humble opinion Robleo, but I don't think you have much to worry about...watch it go post Divi date :-)
Agreed, there is no pressure to anything really and taking the dividend..... buy a bit when they drop after ex divi,....and wait a while for the share to go forward may not be the worst strategy.
As long as timing is not an issue for you, this will probably produce more value than the vast majority of other options out there, coupled with relatively lower risk.
Note sure I understand Steve , I would have thought short positions would be expected, when traders (big and small) are betting on the dividend reducing the share price and being able to fill there short position when the price has fallen. Not unusual for the "gamblers" out there to short it close the position ex dividend and then immediately bet (by whatever means ) on the share price moving upwards. If this is what they do, then as you say it will drive the price forward and upward