Member Info for RogueRiver

Hi mushroomkid

Indeed, why let fund managers take a weighty cut of your profit when you can manage your own fund. As you know, once you have got to grips with the basic technicalities, investing in the stock market is very straightforward. Just stick to some basic rules: Diversify, choose mostly companies with a sound track record, be patient and resist the temptation to trade too often. TW is a case in point. I bought my stake about 18 months ago at 190p and watched it go all the way down to 140p. Meantime, I was automatically reinvesting the dividends and I now find myself over 33% up on my original investment. All that, without having to lift a finger! Good luck.

Given the circs, probably best to take the 5.5p and be thankful it wasn't 0p.

I don't think Capita's reported plan to sell off certain divisions is a bad thing. It was always part of the recovery plan. Meanwhile, another broker downgrade. So, standby for another upgrade!

Okay troublesome. As it's the difference between the floor and the ceiling, let's make it feet and inches.

House prices are up 2.3% on the month. Interest rates are likely to fall, making mortgages even cheaper - and savers are going to be looking for alternatives to woeful bank savings rates (i.e. high yielding FTSE 100 shares in reliable companies). I think there is still quite a bit of mileage left in the TW SP.

Hi TomE

It all sounds a bit cliquey. By all means jabber away. You're obviously very good at it.

Hello TomE

I was merely being courteous in replying to Bamp's response. I'm not telling anyone what to say, but if someone is looking for advice about a particular share, then surely the logical place to discuss it is in that share's BB. It's not as if SM is even vaguely connected to house building shares. There are some BBs where you have to scroll through pages of extraneous chit-chat before you can find anything relevant. I don't think there is any harm in a bit of social chin-wagging, but if that's your thing, there are plenty of platforms better suited to it.

Hello Bamps

The majority of BBs here are 'quiet'. Discussion tends to occur when there is something significant to say regarding the share, company or sector in question. I can assure you that if you want to discuss Sirius Minerals you'll never be short of conversation in the SM BB, 24/7!

Why not wait for 300? It can't be far away once the divi is announced.

Please can we leave Sirius discussions to the Sirius BB?

As for TW, I can see a positive double whammy coming from the expected interest rate cut. Not only will a cut bring even lower mortgage rates (thereby boosting house sales), but it will also send more savers to high yielding FTSE 100 companies like TW. Barring a catastrophe, the direction of travel for the SP is up.

The SP was already recovering past the mid 200s before the bid was even in prospect. It has recovered today from its trading low. You will always see a knee jerk reaction after a bid situation. It’s just those who were hoping to make a fast buck moving on somewhere else.

I’m not expecting any last minute bid to be forthcoming, nor am I expecting to see any dramatic fall in the SP once deadline has passed. The shares are still woefully undervalued, especially after the recent contract gains. I think they probably sounded out IIs and found they wouldn’t be selling out for what they wanted to bid (i.e. not much more than most IIs are averaging!). I’m surprised no other bidders have come forward though. Perhaps they are just not ready to make a move.

Quite a few people here seem very confident the SP will continue fluctuating in the same way it has for the last 18 months. I wouldn’t be so sure. The market appears to have woken up to the true value of this share and, post Brexit, I think there is a very good chance it will be sticking above 200p and probably advancing into the 220s over the next few months.

Breedon empire has room to build further after £178m Cemex deal

Stories of companies that enjoy a $1bn valuation, being built almost overnight, have become almost commonplace in the tech sector. They are somewhat rarer in the so-called 'old economy' - and yet, for those who care to look, they do exist.

During the last decade Breedon Group has been built, almost from scratch, into one of the biggest building materials suppliers in the UK and Ireland with a stock market valuation of nearly £1.4bn. Today, it announced the latest acquisition in a string of deals, buying the UK business of Cemex, the Mexican cement giant, for a total of £178m. The business comprises 100 different aggregates, asphalt and ready-mixed concrete operations across Scotland, Wales, Norfolk, Yorkshire, the East Midlands and North East England.

https://news.sky.com/story/breedon-empire-has-room-to-build-further-after-178m-cemex-deal-11903965

Drawdown read it somewhere, so despite the evidence to the contrary, it must be true. What a t*at.

Yes, Drawdown, we all know how accurate the 'informed opinion' of broker ratings are. If any government is likely to increase outsourcing, it is this one. On what do you base your assertion that Capita 'can't bid for large new contracts'? Again, pure speculation. That might well have been the case in the wake of the Carillion crisis, when Capita itself was in trouble, but the company is now well managed and its recovery plan on track.

Pardon me, but I'm more inclined to take my cue on the future of Capita from the IIs that own circa 85% of the company, than I am from a single broker rating.

@ TLWilliams. I paid £18.50 back in June 2018, so there's always someone worse off than yourself! I've never had any real worries about the long-term value of the holding and I've just left it on the back burner for the last 18 months. The MNG spin-off helped. Pru represents about 3% of my portfolio (as does each of my holdings), so the negative effect of the current SP is minimal. Like Jamesroo, I can easily see it at £20 in a year's time.

Nice recovery today. I never understood why TW was so undervalued over the last 18 months. 'Brexit uncertainty' is the obvious answer, but the company was always in good health and the fundamentals remained sound. I bought at 190p and have been happily reinvesting the very generous divi ever since. The market now seems to be waking up to the value of this share.

The DB downgrade is speculative. Ministers love outsourcing because it means that the contractor and not the government takes most of the flack when things go wrong (or are perceived to have gone wrong), regardless of where any 'fault' may lie. Most of the government outsourcing problems with Capita were legacy fallout from the old regime. Capita were also very bad at handling negative publicity, which seems to have changed with the appointment of the new head of external communications. Capita has recently seen multiple renewals of government contracts (local and national) and there is nothing to indicate this trend will not continue.

There will almost certainly be a rise into the 500s, just in time for the next Hargreaves Lansdown automatic dividend reinvestment date, then it will dive back into the 400s. BP: the share that keeps on taking.