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Now now don’t have a Paddy. It’s not sub £10, and you were spouting vitriol at £11 (not £18) when Liz truss was out in full force. Anyway, back to this, all the aces have already been pulled here (better than expected results, divi etc) yet it’s continued falling so what do you think will push it upwards?
All valud points but at the end of the day, all stock prices are based on sentiment.
Housebuilders will continue going down until interest rates go down, which won’t be for a while yet, so buyers are sitting on the sidelines waiting for a better entry point and earning a positive return elsewhere in the meantime.
Just another saying mick. Ill help you, no god needed. I’ll keep it literal and break it down for you.
The overall trend is downwards, although it does sometimes go up, giving an opportunity to sell before it continues its downwards trend.
No, I don’t mean 3 months. It was going down right until 5 June. God help you if you can’t work out it was a typo for dead cat bounce.
The dead car bounce only started this month, it’s had them before but the overall trend is downwards…
6 months -15%
12 months -38%
24 months -73%
The shorts love a dead cat bounce to short some more…
Steve,
Lorenzo is generalising, of course he doesn’t know the financials of all FTB’s.
Compare pre 2021 to now:
FTB might have had the choice of renting a property for £700 a month vs buying with a 5% deposit (through HTB) at 2% interest rate. It was a no brained to buy a new build.
Today, buyers can’t afford the hefty deposit and they can’t afford the increased rates. “How do you know” I hear you ask, by doing research. It is cheaper for a FTB to pay rent than pay these interest rates, and they are t having to maintain the property or risk negative equity.
No, still some hope value in this of a bid. As the hope diminishes, SP will plung. Seen it several times before, WG, THG, asos to name a few. Shorts won’t close until it’s back below £4.
I had that logic with Asos when the shares dropped to £7. Shorts were 6% at the time. Then they went down another 50% within 2 weeks.
This was £4.29 before rumour of an Amazon bid came out. Will probably return to that level in the coming days now that’s not in the pipeline.
Try gaslighting me all you like paddy. The fact is I sold my long position about 20% higher than this, went short and have made a small fortune. I have to question one’s mental state who continually throws their eggs in to a broken basket.
No equity other than goodwill so everything effectively owned by the creditors. ROA lower that current return on cash. Loss making- and that’s before the increased interest rates. Divi not sustainable.
Why don’t you tell me what isn’t dire?