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And get ready for the market reaction to this news tomorrow… https://www.bbc.co.uk/news/uk-politics-57645976
I too feel underwhelmed with the house building sector… shares have been flat even though house prices have rocketed and guess what will happen to the share price should there be any sign of a correction/crash ??
Nothing negative in the trading statement, but nothing to suggest a significant rise today...
https://www.lse.co.uk/rns/TW./trading-statement-9xkhwgsglglyyhx.html
It has broke through and held above the resistance point today ?? Next seems to be around £2.00, and then we have take off! This page here shows the pivot points using the various common calculation methods...
https://uk.tradingview.com/symbols/LSE-TW./technicals/
Maybe it was in anticipation of the GDP data that came out today... but looks like the construction industry came out as the shining light...
https://www.cityam.com/gdp-data-uk-construction-head-and-shoulders-above-other-sectors-in-covid-recovery/
This should give the builders a little boost when it kicks in...
https://www.express.co.uk/life-style/property/1288999/first-homes-programme-key-workers-discount-first-time-buyers
So closing sites is the right thing to do, if no one is buying houses what's the point of paying 100% of the wage bill for no return. What has now happened is the Government will be on the hook for covering up to 80% of the wage bill. And do remember that the likelihood is that site will remain close for between 1-3months, so when quoting annual salary costs we need to remember that the impact is only a quarter of the annual cost. So £450million is now divided by 4 (£112,500,000) x 20% for the salary that will be covered by TW = £22.5million... peanuts in the scheme of things.
With regards to the Dividend I feel they should have deferred it or put it on-hold, cancelling it is just a kick in the teeth to shareholders who have already lost so much in this company already.
Hi Flavourshaker, Things we're very different back in 2008 and there was a real possibility of TW. going bust due to being saddled with £billions of debt (shortly after the merger between Taylor Woodrow & George Wimpey)... and yes, I remember buying some shares at 4p. They had to be bailed out by the shareholders and the lenders. Today they are cash rich, with a massive forward order book £2billion+ and £600+ million that they are ready to splash out in dividends (although some believe they may cancel these in-light of the COVID-19 situation. Yes, this could impact forward sales, but it will soon recover... people still need somewhere to live and we still have a pent up shortage of housing in this country despite brexit and possible death toll of COVID-19.
These shares are a bargain... its current price is simply hideous.... but we all know the automated trading platforms and people with short memories of 2008 seem to think the builders will be hit the hardest hence the drops. What I really don't understand is the drop today, I can only assume the CEO had coughed in a recent meeting or something.
Out of all the sectors on the FTSE100 my personal view is that the builders are one of the best placed sectors to survive this pandemic. Supermarkets also took a beating yesterday despite record sales over the past few weeks and being one of the only outlets likely to remain open when we move in to shut down.... market madness.
Ok... so were all happily in profit on this one having broken through the 5 year high, but does anyone have any thoughts on where the ceiling will be?
I'm sitting on a fair chunk and would normally consider selling this this point, but the 20% increase in forward sales is making me wonder if I should hold on for another 20-30p. Thoughts and opinions would be most welcome, and would be also interested to hear what the charts suggest in regards to resistance.
But how have those worries changed today compared to yesterday resulting in a 6.3p drop? Headlines on BBC news today "Brexit will make UK worse off, government forecasts warn"... yes agree, but we've known that for 2 years... so why the drop today.
A significant majority of MPs agree that crashing out with no deal is not an option, so it leaves effectively 3 options.. we take the deal agreed by the government, we end up with a better negotiated deal (by the government of the day), or we end up staying in the EU (probably following a second referendum). All of which would have a positive impact on the £ and should remove the fear of hiking interest rates to protect it.
Or do the markets have a different take on it?
Builders are (yet again) way down compared to the rest of the market with no further news on Brexit being revealed today. I thought at first it may be the BoE stress test results being released this evening... but the Banks are relatively untouched. Anyone have any insight as to the cause?
I think those that voted to leave would have preferred it if the government had spent the last 2 years planning alternative trade deals and the logistics of dealing with Europe on WTO terms, rather than spending 2 years trying to negotiate a “deal” with Europe... with people who’s only interest is to punish the democratic process and decision of the majority in the UK. I hold a substantial holding in TW, but I rather we got out dealt with the fall out and rebuild from there rather than continue to stand on the steps of Brussels with a begging bowl. They would soon come back to the UK to improve trading terms when profits drop like a lead weight for companies like BMW when UK customers choose not to pay 20% more for their motor vehicles. Remember the UK is one of the biggest net contributors to Europe. I don’t think many Brexiteers have changed their stance from the referendum like the Remainers seem to think. Let’s get out, stay out and build a great nation again.