Member Info for terrace

moving up now.

What is it that the market does not like,all homebuilder SPs falling after the announcement.

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=PSN&ArticleCode=c69ydhbd&ArticleHeadline=Half_Year_Results

https://www.theguardian.com/business/2018/aug/19/homebuilders-house-of-cards-wobble-persimmon-help-to-buy

https://www.showhouse.co.uk/news/architects-in-london-lose-confidence-in-future-work-loads/

https://www.msn.com/en-gb/money/markets/housebuilding-barons-sell-shares-worth-£300m-as-fears-mount-for-property-market/ar-BBM6hFz?ocid=spartandhp

http://www.dailymail.co.uk/money/mortgageshome/article-6077995/Asking-prices-slump-7k-month-Rightmove-data-shows.html

https://www.bbc.co.uk/news/business-45084530

http://www.dailymail.co.uk/property/article-6067529/Planning-application-postcode-lottery-mounts-Londons-wealthiest-approvals.html

Yes Wigan,we don't really benefit from what has happened in the past,it is what comments are made about the outlook that matters.CEOs have to be VERY careful what they say for fear of spooking the market further.Recent statements have been cautiously defensive though rather than promising to shoot the lights out in the coming year.Any home builder than can increase EPS after 2019 should be respected as softening of sale prices,increased incentives,rising marketing,material,subcontractor and overheads costs will pile on the pressure.Homebuilder shares have always had lower P/Es than the wider market and current SPs probably fairly reflect immediate prospects.To be realistic,we must be getting close to a bottom and it will be surprising if SPs fall by more than another 10 or 15%.Long term(5 to ten years) home builders should be real wealth builders once demand has the confidence to progress to actual sales,most people aspire to a better home.Focusing on short term events is not really very businessllike.

Word from insiders is that it is becoming increasingly more difficult to persuade potential home buyers to commit to a purchase because they are very nervous about all the uncertainty in the media about Brexit,interest rates and the economy in general.This will pass eventually but it might take a while.In the meantime,the prospect for home builder SPs is not encouraging in the near future.

This could be an interesting journey.

Nige...What yield are you referring to,with SPs falling more than the dividends,there is no yield at the moment is there?.There may be demand for new homes,but with all the uncertainty around,buyers are not committing to purchases right now.Might be a few years before SPs take dividends in their stride .

such as what?.

https://news.sky.com/story/new-zealand-bans-foreigners-from-buying-homes-to-combat-soaring-house-prices-11473706

https://www.theguardian.com/business/2018/aug/15/london-property-slump-puts-brake-on-uk-house-price-growth

http://www.dailymail.co.uk/money/mortgageshome/article-6062573/House-price-growth-slows-lowest-rate-five-years-market-continues-cool-down.html

The term well researched was not aimed at my own posts but those of Sain and Cyber.How come you are so offensive but so easily offended?.Dont see any other posters taking your stance.

Jimmy...you do seem to have a problem with other posters who post well researched items that highlight factors about PB that are less than positive.We all agree that PB has disrupted the way homes are sold and saved many people a great deal of money.but they are facing increasing competition,a slowing market and they do appear to manipulate their approval ratings.Notwithstanding that,in view if their lack of profits and rate of cash burn,missed profit forecasts and over rapid geographic aspirations,their current market cap is absolutely ridiculous and about 5 or 6 times higher than it should be.They are going to increase revenue but will they ever make a return for their shareholders that justifies the exuberant SP we have today,let alone the giddy heights it reached a while ago?.

Tom...Tw is cheap but not necessarily undervalued,so why is it a known fact by most posters on here( as you claim) that the SP is too low..TW is more expensive than its peers and the dividend yield is wiped out by the falling SP.EPS are going to come under pressure due to more difficult home sales.What is it that you and most posters (your words) know,that the market does not?.You have been referring to top ups here since 200p.