Barratt Developments Share Discussion Threads

[kenmitch] 06/2/2019 10:17

DR SMITH.

I realise you didn't. I was responding to post 2042 by Barnesian who did.

A lot of investors make the mistake of believing buybacks put a floor under the share price so I thought it worth a reminder that they don't.

They DO mean higher eps (good for Director bonus pay if those are based on eps) and DO obviously reduce the number of shares in issue, which can help maintain or give higher future dividends.

[dr_smith] 06/2/2019 09:43

kenmitch. Interesting comment, but for clarity, I didn't say "Buybacks don't mean a floor for the share price."

[kenmitch] 06/2/2019 09:26

Buybacks don't mean a floor for the share price. If they did it would be a guaranteed way to invest successfully.

There are many examples of Companies buying back their shares and seeing subsequent and sometimes immediate share price falls.

For two current examples look no further than Standard Life Aberdeen SLA and NUMIS NUM.

Standard Life started their buybacks with share well over £4 and despite buying back almost daily the share dropped fast to £2.40.

Also buybacks won't save the share price from falls if there's a profits warning/downbeat trading update.

e.g BP share crashed on Gulf of Mexico news despite then recent £20 billion buyback and yesterday NUMIS fell 30p on downbeat AGM trading update.

There are pros and cons for buybacks but a floor on the share price is NOT a given!

[dr_smith] 06/2/2019 08:42

Have others noticed "Forecast" dropping out from advfn co info?


I think it started a week or so ago, I first assumed it was a glitch whilst updates were done, but the data is missing from each share I pick, though for IQE the forecast data has replicated several times ( seemingly a cartesian join symptom in programmer terms).
Anyone know what's going on, how to bring it to attention of advfn admin?

[dr_smith] 06/2/2019 08:19

Funny, that's the bit that jumped out on me too.
Not against buybacks in concept but have seen it elsewhere seemingly be frittered away due to market manipulators and the like, so not benefiting the LTH.
However, the wording here suggests it will only be when the price dips below norm and can mean LTH profit from any short attacks.

[barnesian] 06/2/2019 07:53

"Whilst the payment of special dividends represents the Board's preferred method of returning excess capital to shareholders, this recognises that at certain share price points, share buybacks will be in the best interest of shareholders."

That suggest to me that they will support the share price by share buybacks if it falls to a certain point rather than pay special dividends. I'm guessing that that is also in the interests of directors' share price related bonuses (if they exist - I haven't checked).

So a good investor strategy is to look out for share buybacks and recognise that that is probably a floor of the share price.

[eggbaconandbubble] 06/2/2019 07:18

Results. Interesting bit about switching special dividends to share buybacks when share price gets to certain levels. I think that needs a bit more explanation.

[salver2] 05/2/2019 11:23

Taffee and Porsche have been awfully quiet while this has risen nearly 30 percent in two months - Porsche will soon be having to sell his French house

[rwlly] 28/12/2018 13:35

Seems to have met support, where to from here.

[amt] 17/12/2018 21:16

W5AMH NI border is very sensitive as part of Good Friday agreement so no similarity with Gibralter

[dr_smith] 17/12/2018 17:04

"Jessica White, Chief Financial Officer, has today purchased 10,000 ordinary shares of 10 pence each in the Company."
and "Peter Richard White, a PCA of Jessica White, Chief Financial Officer, has today transferred, to Jessica White, 8,088 "

On first, a good sign, but there may be a job requirement to maintain a certain number/value so hard to see if it is driven by confidence or contractual obligation.

On second, I don't read anything in to it, probably for family capital gain reasons.

IMO.

Dave

[amt] 17/12/2018 08:00

Pirsche. Yes I am thinking the same now. When the vote occurred I had mixed views and thought there was at least some chance of things working out. We didn't know about N. I. border issue then which makes for an impossible situation now. I expect we will see further evidence of the economic impact. We are all already 20% worse off through fall in pound. We are starting to see that on the High Street after that it may be the housing market.

[taffee] 13/12/2018 10:32

turmoil has only just begun imo the UK has big structural economic problems

People forget near zero rates and other props are in place because things are really bad

chickens are coming home to roost

[porsche1945] 11/12/2018 22:14

Rob, i was but theyve expired now, im out. Good earner, did best on Persimmon. If by some miracle they get a deal these builders will go back up, I needed not to get caught if they bounced, not being too greedy. Having said that Im not happy watching what is happening to UK, its disgusting what that idiot Cameron and the Tories brought on with this brexit insanity and idiots who voted for it and keep pushing it must be into self harm.

[action] 11/12/2018 09:20

Even I have negative views on shares; I never shorted shares. Bull market is coming to an end. Dax down 20%. All american Banking shares down with UK and european stocks. DYOR.

[robizm] 10/12/2018 20:56

I thought you were short porche surely you are enjoying this

[action] 10/12/2018 15:54

I was glad I got out of this.

[porsche1945] 30/11/2018 09:28

Builders going down through support levels at some speed, if they dont get a brexit deal fast or better still cancel the madness or have another (quick) referendum, property like other uk facing asset will be toast.

[dr_smith] 29/11/2018 14:59

CharleyBrown.
November is a really looooong month...220th? ;-)
Not sure what it tells us, but interesting none the less.
On second reading I spot the 50% is actually 25%, you pasted twice!

Where do you get the info.
Is all FTSE 350 available?

[rwlly] 29/11/2018 14:30

Looks as if opinion is starting to turn against overpriced property. If we did have a 30 percent correction, London and the south east would still be overvalued.

[charleybrown] 21/11/2018 12:15

MAIN SHAREHOLDERS TUESDAY 220/11/2018
Woodford Investment Management Ltd. 51,396,412 5.07%
Fidelity Management & Research Co. 34,579,199 3.41%
Standard Life Investments Ltd. 32,629,664 3.22%
BlackRock Investment Management (UK) Ltd. 30,672,099 3.02%
Norges Bank Investment Management 23,460,000 2.31%
The Vanguard Group, Inc. 22,512,000 2.22%
Legal & General Investment Management Ltd. 20,520,000 2.02%
JPMorgan Asset Management (UK) Ltd. 20,330,718 2.00%
David William Wilson 17,795,000 1.75%
RBC Global Asset Management (UK) Ltd. 14,640,637MAIN SHAREHOLDERS Tue 08:29Woodford Investment Management Ltd. 51,396,412 5.07%
Fidelity Management & Research Co. 34,579,199 3.41%
Standard Life Investments Ltd. 32,629,664 3.22%
BlackRock Investment Management (UK) Ltd. 30,672,099 3.02%
Norges Bank Investment Management 23,460,000 2.31%
The Vanguard Group, Inc. 22,512,000 2.22%
Legal & General Investment Management Ltd. 20,520,000 2.02%
JPMorgan Asset Management (UK) Ltd. 20,330,718 2.00%
David William Wilson 17,795,000 1.75%
RBC Global Asset Management (UK) Ltd. 14,640,637 1.44%

[penycae] 19/11/2018 12:12

You da man......

[taffee] 19/11/2018 11:03

don't panic bulls...I think there is support around 450p then 300p!

lets hope people aren't too leveraged...

bulls sell or wait?

Luckily I'm a bear and pretty relaxed

[porsche1945] 16/11/2018 18:46

minerve, yes i do but there is little profit for builders in shared ownership schemes, they only do it becos they are leaned on by councils to do it or they dont grt planning, they are viewed the same pretty much as council housing and often yank down prices of surrounding project as have the connotations of “ social “ housing. Academic anyway, house builders going down the toilet with rest of brexit lunatic uk plc. Interesting how hard Persimmon getting hammered, they build in poorer areas i guess so likely to get hit harder as the coming recession bites.