Member Info for WiganWarriors

Just seen your post. I have tried this in the past and it matches transactions to spot those within 30 days. However, the HMRC rules are quite clear and I suspect if you were challenged they would win. As I say, it is really up to your conscience how you interpret, before filing your tax returns

Well, my comment re conscience relates to your plan. It obfuscates the underlying plot. If you type the transactions into a CGT calculator in chronological order, it spots what you are doing and compiles section 104 accordingly.

I’ll leave it to your conscience whether you wait, or not before buying back

You need to sell therefore crystallising the loss for tax purposes, then buy back. You used to be able to do a “bed and breakfast” overnight transaction. However you now need to wait before buying back (from memory 30 days). There is a risk nowadays that the price will move, so a bit of planning re dividend cycle etc required.

Non of my business of course. If you are sitting on large(ish) loses and you believe that Wimps will recover in due course, would it not be a good idea to book those losses to offset future gains. Otherwise you will likely be due a tax bill.

I run a spreadsheet tracking Wimps Central London sites, and availability, reserved, sold etc. Whilst it is not perfect it provides an indication of how things are going in the toughest market, as I am happy with sales outside of CL. It was quiet over summer, but they have now closed out some of the bigger sites and bringing on the new Postmark and Junction House. Postmark now showing reservations. In summary, I suspect that Wimps will have had a decent season with CL, despite the poor commentary, and they may surprise on the upside at the next trading update. Of course, that could turn on a sixpence id Brexit collapses and we head for a general election. As you might expect, they are selectively discounting the Battersea development, by offering SDLT paid (incl add'l 3%), on selected weekends. I suspect this is to help hit forecast year end unit sales, albeit with a flat ASP. The discount is around 8%. So, if you believe Mrs May will somehow steer a way through the current mess, and deliverer a reasonable Brexit (not withstanding anyone's personal politics), we could make a few bob over next year and possibly maintain specials for a few more years. The alternative is dire. As usual IMHO.

Heavy falls reflect the fact that the big long term investors are sat on the side lines and have a wait and see mindset, as they don't believe what the builders are telling them. So no one is rushing to place large orders at these prices. Meanwhile this sharp volatility is shaking out weak retail investors via stops and cash calls not being met, which exaggerates the falls. Meanwhile the automated trading and hedgies are also compounding the fall. Add this to uncertainty re Letwin Review (due net week or so), Brexit negotiations take a turn for the worse, Budget due and there is a risk of HTB not being extended, and there isn't much to take comfort from in the short term. However, IMHO, if you can see past this and build a decent position then in a year or two it should pay off. Also, I would not take it for granted that the @special@ cash distribution will continue beyond next year, as that depends on Wimps reducing land bank and sell more houses, which might be difficult if economy flat lines. Some wags in dealing rooms are circulating humour : https://twitter.com/RANsquawk/status/1050299212490006528/photo/1

Bad start likely because of Mrs May’s announcement of increases in Stamp Duty for houses bought by non tax payers. Another negative factor for those builders exposed to Central London. Although I suspect the Market will shrug it off in a day or two.

I thought we would have a bad day after the debacle yesterday, and the BBC stoking the fire last night. However, I was surprised when we opened up today, and seemingly held steady(ish) until Mrs May’s speech. I fear this will knock the confidence of those about to commit to house purchases, and will likely mean house builders will struggle to meet year end guidance. This sort of European attitude will likely get the backs up of the British, and will increase the out vote. I would also expect a popular reaction to purchasing all things French. Hey ho, need to dig in again for a few more months.

Re SB. I can only say that use use SB as a way of structuring trades so there is no tax to pay. You can replicate normal trades and manage the risk down (just to save tax), or accept more risk by leverage, if you know what you are doing. However, since Mifid 2 unless you have “professional status” the leverage is substantially reduced. I wouldn’t recommend it if you are the gambling type, and trade on a whim or B.B. tips.

Lest we forget, it is the Market which sets the SP, not the Analysts. They often have other reasons for publishing target prices. Especially as “Chinese Walls” are not what they used to be.

I definitely remember when the SP was in the mid 6-7 £. I looked, and decided against dipping my toes given the fragility of the housing market. As the shares fell Wimps decided to launch a buy back plan, and destroyed a lot of shareholder value which accelerated the crisis with respect to the balance sheet. The then FD lost his job. Once I was satisfied that they could survive, I started to build a position at < 27p. It was the sale of the US and Canadian business to PE for $1bn that ensured survival. It was the same for most builders at that point in time. Some major investors and professionals have not forgiven Wimps for their buy back plan, hence a lack of support re other builders. Either way the mood music from EU looks promising, so if I was a betting man Wimps will be a good investment if you can see through the immediate volatility. Patience is a virtue.

IMHO, chasing dividends is a mugs game, especially “special “ dividend. It only works in a bull market, and soon falters as a trading strategy as soon as the bull turns tail. Bear in mind the builders are heading towards a bear market ( in % terms), and only the inexperienced believe dividends are for free. Best to hedge.

Well, no one really believes the builders that things are steady and not slowing too fast. Of course, you must do your own research and decide who is correct, and place your bets accordingly. IMHO, things are slowing in London but not as quickly as the media are suggesting, and some are not separating new build from secondhand. Eventually all this poor sentiment becomes self fulfilling. Finally, Wimps are probably in the worst situation re current sentiment as they are committed to Central London, as well as having the largest land bank. For those who are anxious about further SP falls, choice is either exit or hedge.

See what BVS and MCS have to say tomorrow. As usual, hope they choose their words carefully.

Well, Wimps bought back shares during the previous downturn, 10 years ago. Same views were expressed then, as the share price started to fall Wimps spent a lot of cash buying back. The SP continued to collapse destroying share holder value. The then FD payed with his job. I don’t expect Wimps will do that again. Also, they have committed to distribute cash as dividends, so if they change that plan then SP likely to fall further as the pro traders will likely smell blood and push SP down further. If you look at the LTIP for Directors they are not goaled on eps, so again they have no personal reasons to buy back

Well, this is world we live in these days. The majority of thrades in the major markets are driven via algorithms, and usually by high speed traders. Volatility is the new norm, with less sticky holders being either stopped out or end up throwing in the towel due to fear and anxiety. The professional traders just scalp away and earn a decent living by these means. As for the non professionals, then you need to be confident you can hold during these periods of volatility, otherwise you just loose out. I have every confidence that anyone getting in at these prices will do very well, if you take a medium term view ( two years). Finally, trading the building sector has political risk, as housing ownership is deeply ingrained in the British psyche, meaning it’s fair game for politicians and media to exploit for their own ends, regardless of the consequences.

RDW good results update, however one small fly in the ointment is a comment re central London proving challenging, with other areas steady. IMHO, Central London will continue to be a drag for Wimps, compared to other volume builders who are generally out.

Woody, what are you talking about ... RNS release

'As an expression of their support and confidence in the Havieron project, DDH1 has agreed to accept part payment of its drill programme fees in the form of shares and warrants in Greatland, on the same terms as the Company's recent placing and subscription announced on 27 July 2018;

·   Following the commencement of drilling at Havieron, and in consideration for an amount of £142,045.45, or approximately $250,000 Australian Dollars, Greatland will issue to DDH1 11,363,636 ordinary shares of 0.1 pence each in Greatland Gold plc, and will issue 11,363,636 warrants with a 2.0p exercise price and an exercise period of 12 months;

In the interest of balance. Surely no one believes that the drilling company has actually taken part of its payment in shares ? Drilling companies have operational expenditure to cover, salaries to pay, rig leasehold payments to make. Why would they take highly speculative paper as an alternative to cash ? This looks like a ruse to get market headlines and naive retail investors to believe that other 'stakeholders' place a value on this paper. Of course, if I'm wrong then it is just more dilution ... either way does not instill confidence.