buildboy28 Oct 2009 20:47
SM had to sacrifice Harrow as there was far too much potential for conflict of interest. Harrow is/was a great company but now it is a front-end land delivery vehicle for Redrow and has lost a number of key personnel so will not be able to replicate past success. The Harrow purchase has given Redrow a lot of plots primarily in the north west but they could have taken more of Harrow's sites than they did so perhaps there is still some degree of choosiness? Like all the major housebuilders SM is pushing hard on new land purchases but doesn't want to pay anything for the land until much further down the line. The sector is being crucified in this new downturn as the market makers have lost out big time over the past 6 months and are determined to beat the PI's into submission. This is going to happen across the markets over the coming months - so we should all switch to cash ASAP. I don't agree that TW has traction but I do agree with you on BDEV - it is the sleeping giant and is well placed after the RI. Mark Clare has steered the ship very well (he still has a job so that proves something) and they will mop up when others start to falter (again). If BDEV gets below £1.20 then I reckon it is a bargain, but with sentiment the way it is, I reckon it might push down towards the RI price of £1. Then it would be a compelling bargain buy.