Bulgarian Property Developments Share Discussion Threads

[roddyb] 07/2/2005 18:40

Doesn't it worry anyone that these fellows don't even have so much as a decent website to let us mortals what they are doing in these important days of infancy?

[peterstilgoe] 06/2/2005 15:30

Let us know about your trip Biswell, I was out there last week, Varna, Sunny Beach & Sofia. However due to the weather I doubt you have managed to get to Varna ??

Cheers.

[dwelshmafia] 06/2/2005 15:10

should be good soon

[amitkoth] 31/1/2005 08:17

Might be a good time to exit chaps!

[biswell] 28/1/2005 13:49

Hello peter.

Yes I think R may be next, but I am off to B for a week or so tommorrow.

This share should be 50p when I get back I reckon

B

[jpmegias] 27/1/2005 17:53

Stratospheric UK prices have prompted many adventurous landlords to search overseas for new properties. Enter Bulgarian Property Developments (LSE: BPD), which claims now is a 'good time' to be buying Bulgarian homes because of the country's steadily growing economy, prospective EU membership and (up to) 12% rental yields.

BPD joined the stock market at the start of the year and aside from the money it raised, its main asset seems to be six plots of land near the Sofia ring road. BPD typifies that age-old bubble phenomenon of speculators piling into strange markets in distant lands and those tempted ought to read this first... then give the far-flung buy-to-lets a miss

[lucymick] 26/1/2005 19:22

Don't catch the falling knife

[biswell] 26/1/2005 17:49

See what I don't like about this statement from the AIM listing is , that
1. No mention of what they have got...which is I believe sweet FA

and

2. They are talking about other Eastern EU countries already...when it is called BPD

So which countries do they think will be better bets ?

'It is the Directors' intention to undertake property development, trading and
investment primarily in Bulgaria. The Directors believe that prices in the
Bulgarian property market, which have increased in previous years, will continue
to increase over the next few years. The Directors will also consider property
market opportunities which arise in other south eastern European countries.'

B

[biswell] 26/1/2005 17:45

Bulgaria- the Best EU Property Punt (BPD)

The punt has a hole in it that is leaking methinks....still if you paid 50p to get in 60p is still a decent time to get out of said punt before it sinks.

I.E goes less than 50p

B

[biswell] 26/1/2005 17:43

So they own 6 plots of land by the Sophia ring road do they ?

How much did they pay I wonder, and how much cash have they got left?

Why did they issue another load of shares ? what do they need the lolly for so soon after listing ?

18% dilution on issue price gives 41p, so 40p seems a good punt for the share to be heading

B

[biswell] 26/1/2005 17:38

Mmmm so if they go to 25p your back to square one

B

[mangal] 26/1/2005 15:35

Well said ISa; however, I think it should not mean that one should never buy into these speculative investments. People do make a lot of money from investing in "bubbles". The trick is in recognising what a bubble is and knowing when to take some profits. what of BPD? I think its got huge potential & certainly worth investing in for the long term. I sold half my holding when the price hit 100p+ but am holding on to the rest for the long term.

[isa23] 26/1/2005 13:59

More Housing Shares To Avoid

Market Comment

By Maynard Paton



"Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favourable business conditions. It is then, also, that common stocks of obscure companies can be floated far above tangible investment, on the strength of two or three years of excellent growth... Most of these fair weather investments, acquired at fair weather prices, are destined to suffer disturbing price declines when the horizon clouds over -- and often sooner than that."

So said Ben Graham in his masterpiece The Intelligent Investor. His advice would have steered investors far away from all the dotcom dross a few years ago. It should also prompt a wide berth from the embryonic, speculative and/or somewhat mysterious growth stories spawned by the current housing bubble, most of which will end up being the property equivalent of Jellyworks.

Stratospheric UK prices have prompted many adventurous landlords to search overseas for new properties. Enter Bulgarian Property Developments (LSE: BPD.L - news) (LSE: BPD), which claims now is a 'good time' to be buying Bulgarian homes because of the country's steadily growing economy, prospective EU membership and (up to) 12% rental yields.

BPD joined the stock market at the start of the year and aside from the money it raised, its main asset seems to be six plots of land near the Sofia ring road. BPD typifies that age-old bubble phenomenon of speculators piling into strange markets in distant lands and those tempted ought to read this first... then give the far-flung buy-to-lets a miss.

United Carpets is due to float anytime soon and could also come a cropper in a housing bust. United has in the last eight years created an estate of 50 shops selling carpets, wood floorings and beds. Assisted by a franchise system, the site count is expected to double by 2008.

But beware: if house prices go into reverse and mortgage equity withdrawals take a hit, spending on big-ticket home furnishings could very well evaporate. Beware too of Carpetright (LSE: CPR.L - news) (LSE: CPR), the sector leader that enjoys much greater management experience. A value of £20m is touted for United and going on market tradition, such a fast-growing specialist retailer will almost certainly sport a racy price to earnings ratio that allows plenty of downside.

Finally, Trading New Homes (LSE: TNH), which floated last week, is another likely to provide serious disappointment when the public loses its lust for property. Details on the company are sketchy, but essentially its plan is to 'actively trade' off-plan and new-build homes. Apparently, the firm's trick with off-plan properties is to buy in early to secure a decent discount from the developer, which should then help to produce a profit after they're built and sold on.

However, this so-called 'flipping' strategy seems a lot like the quick-buck 'stagging' that went on with Internet shares in the tech boom. The obvious problems with property 'trading' can be seen here and here... Suffice to say, anybody owning a collection of half-built homes when the housing music stops is in for big trouble.

Details

Share Price Market
value
Bulgarian Property 57p £5m
United Carpets n/a £20m*
Trading New Homes 105p £11m


(*Estimated)

More: Other Housing Shares To Avoid

[biswell] 25/1/2005 15:06

18.44% dilution

Will they issue more shares?.......watch this space

In the meantime the shares should fall -18.44 % extra, or -12.11p on todays price
65.5-12.11=53.39p

Plus the worry that more will be issued causing further dilution + the negative sentiment running in the stock so

40p

B

[biswell] 25/1/2005 15:02

Bulgarian Property - Holding(s) in Company
RNS Number:7136HBulgarian Property DevelopmentsPLC24 January 2005 For immediate release Bulgarian Property Developments Plc ('BPD')The Board of BPD announces that it has allotted a further 1,367,720 new ordinaryshares and has applied for these shares to be admitted to trading on the AIMMarket. Accordingly BPD's issued share capital is now 8,784,294 ordinaryshares.BPD has been advised that Thomas Grant & Company Nominees Ltd has sold 350,000ordinary shares in BPD, following which, as at 21 January 2005, their holdingwas 530,000 ordinary shares. Following this transaction and the furtherallotment referred to above, the following persons are interested in 3 per centor more of BPD's share capital. No. of Shares %Thomas Grant & Company Nominees Ltd 530,000 6.03Arbitrage Research and Trading Limited 500,000 5.69 George Robinson 500,000 5.6924 January 2005EnquiriesIvo Hesmondhalgh (Director BPD) - 020 7243 1336Ken Vere Nicoll (Matrix Corporate Finance) - 020 7925 3388 This information is provided by RNS The company news service from the London Stock ExchangeENDHOLEAAFLAFFSEFE

[biswell] 25/1/2005 14:57

When it goes sub 50p to 40p it becomes a nightmare

B

[okblue] 25/1/2005 14:55

I am looking to buy in but they have issued another 1,367,720 shares
to the market this will water down the existing shares i think.

[biswell] 25/1/2005 14:52

I do not think that this company have bought a single brick or bit of concrete in Bulgaria

I do not think they have bought any land either.

I do not think they have a strategy for what to do with the money and what or where to invest it.

Tell me if I'm wrong with links

All this company has done is to try to market a dream.

B

[biswell] 25/1/2005 14:49

50p

B

[roodboy] 25/1/2005 14:48

how low will this one go ...?

[targatarga] 20/1/2005 14:41

Any ideas regarding cash position and annual overheads? regards

[malkie] 20/1/2005 09:11

hi - im looking at BPD - does this Co have their own website??

Malc

[spiv 1] 19/1/2005 18:54

And down she goes. Only 16000 traded today and the price hammered. That sub 60p buy price target gets ever closer.