Member Info for Sparks21

I agree that debt reduction is a key part of the story.

I think the shorters have strategically pushed the price down. Oil, gas and renewables is obviously a sector that's been under pressure. Debt is also a concern but free cash flow is good, as is predictable forward earnings. I'm in here as I believe the fundamentals will shine through in time. The move to main market may also provide some pick up in the share price. I'm hoping the shorts start to close in the run up to the move.

Good interim results and great to see some directors investing too.

Any one have any ideas on why this is dropping lately?It looks like great value currently.

Millennium appear to have slashed their short.

* 3 year

Hi Strictly. The ROE observations you make are valid. I do see the company as a 3 recovery play. I'd hope loosening of borrowing rules, planning restrictions, lower borrowing rates will, eventually feed into ROE. Labour made house building the foundation of their growth agenda manifesto. House building targets are being missed so far. Thus, I can smell another help to buy scheme bubbling up in the autumn budget. The budget may well be take with two hands and give back with one. This could be part of the give back.

Another strong trading update. Bellway seem to be getting on with business without too much drama. Margin and volume heading in the right direction. Well done Bellway.

Broker Peel Hunt have a price target of 725 as of the 1st August. The shorts look to be sitting on the fence. Hopefully when one or two more reduce they all follow.

Berenberg cuts Ashtead Technology price target to 700 (800) pence - 'buy'

Probably a good time for the directors to consider buying shares and raising the dividend. Director buys, the recent drop and a mindset of rewarding investors with dividends might begin to scare off the shorters.

i bought in today here. down to 350 on weak trading update although pre tax profit is still on target. on the back of a *** packet i reckon they will have revenue of 205m and a 27% margin which gives a 55m operating profit, minus 8m in interest payments give pre tax profit of 47m and post tax of 35m. mcap of 290m and the assets they have, the strong order book and the strong director buys in the previous year are enough to give me confidence this will recover.

Some positives for my fellow share holders from Richard Hunter over at ii:

"More positively, the total average selling price has increased from £323,000 to £344,000, perhaps partly due to the higher end nature of Redrow sales, and in any event a welcome development for margins. A strong forward order book of £2.9 billion is 10.5% higher than the corresponding period, and the significant growth in approved plots from 12,439 to 22,530 signals a landbank which is ready to be unleashed."

Full year 2026 should see some impressive profit with far fewer "adjustment" costs relating to the merger. My target for late 2026 is 550 to 600. Topped up my holding. GLA.

Jaybike. Good post but no debt? They are paying nearly 11M in interest on something?

Glowacki, I'm not comparing cash in the bank. I'm comparing debt levels and more importantly, how long it would take to pay down these debts given the amount of profit. Both Currys and B&M have around 3 billion in current and non-current liabilities but B&M are making much more money, around 3 times as much profit. Looking at the last few years, interest payments on the debt at B&M are taking about a quarter of pre tax profit while at Currys it's more like half. B&M pay a better 5.5% dividend. Margin at Currys is 2.3% while at B&M it's 10%. One could summarise that B&M works hard to reward it's investors while Currys works hard to pay back interest. On balance though, Currys are reducing down their liabilities while at B&M they are increasing. I'm hopeful B&M begin to start reducing their debt also.

I've had this on my watchlist for a while but not invested. The debt level is too high for me along with the very small margin of 2 or 3%. I agree with the Broker that B&M has better potential. Less debt, higher margin, better dividend and more likely to thrive in any downturn. I do agree it's rather odd for a broker to recommend a sell on a stock below it's target price.

Given the extension, this time, is just 17 days, it gives me the impression an offer is more likely. If negotiations were going nowhere then why extend. If negotiations were going somewhere slowly then why extend just 17 days. Time will tell. Good luck everyone invested here.

Maybe not a cash cow now, I agree. I guess my play here is more of a recovering cash machine. Margins will likely take a short term 0.4% hit in 2026 & 2027 as new investments in Logistics and manufacture are made. They will also, at some point stop expanding the store count. These things, I imagine, will mean a higher dividend in 2 or 3 years time.

Nearly doubled my holding today. I think people are viewing this as a growth share and are thus very disappointed. I see it more of a cash cow. It's making around 200m pre tax and it's worth around 2B so that is a pre tax P/E of just 10 for a quality proven business. This update warns of a profit slide of around 2% (According to LSEG data, analysts, on average, were expecting Greggs to earn 198.5 million pounds of operating profit in 2025, compared with 195.3 million pounds last year.) that does not justify a 14% share price drop in my humble opinion. A 5% drop, yes. I love these market over reactions/opportunities!! Good luck all.

This news won't help.........

The average UK house price dipped by 0.8% month-on-month in June, according to an index.

Across the UK, the typical property value in June was GBP271,619, Nationwide Building Society said.

The annual rate of house price growth slowed, to 2.1% in June, from 3.5% in May.

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I get the feeling in my local area (as I've been helping a friend house hunt and sell) that there is some oversupply since the stamp duty drama and sellers are having to cut prices to remain attractive. More houses are being added to Rightmove than are coming off. Hopefully this will correct over the rest of the summer. I feel the demand is there, but we need another interest rate cut or two and we need this general uncertainty to begin to evaporate.

I've been watching this share for a while and bought in today. More US (main market) bad news, could be bad for this. It was struggling in the dec update but hopefully no more bad news to come. Also its not really growing much for a growth share!!! I think this is essentially the reason for the slide along with the risk that people don't invest in helpful website analysis software in a downturn. I feel these risks are fully baked in now. I think the share is also overlooked. The forward price-to-earnings (P/E) ratio’s just 8.2 times. The cherry for me though is the 24 million cash £ positive balance sheet against a MCap of 56M £. Obviously I'm hoping for a good July update and perhaps an increase in the dividend. My 1 year target is 225 to 300. GLA.