Mj Gleeson Share Discussion Threads

[exbroker] 29/3/2013 19:23

Buyers giving 205, these could run further I think the asset value is understated and the whole sector is on the charge!

[bluebelle] 22/3/2013 09:56

Thanks Exb : very much agree with you about the quality of management and the simplicity - and transparency - of the business model.

[exbroker] 22/3/2013 09:37

I met the company recently and tried to buy more at 180, which I did not do as there were already 3 buyers, I would buy more if they come back to the 190 ish level. Good quality management and simple business model both of which I like.
The budget measures will help they could do with buying some more land for development as this could strongly increase demand for their homes.

[bluebelle] 21/3/2013 12:02

Wow ! Day one and I've already got more supporters than the Liberal Democrats !!!

[battlebus2] 20/3/2013 18:57

lol, Start your own party and you've got my vote.

[bluebelle] 20/3/2013 17:56

Amazing that this is so low profile - fortunately that is not reflected in the share price performance ! Will be one of the biggest beneficiaries of Gideon's 'cheaper homes for beer drinkers who can't really afford to pay for them but don't worry the Government will bail you out if it all goes t*ts up' policy IMHO, at least until it all goes t*ts up !!!

[bluebelle] 18/3/2013 08:39

Wow ! A blue stock this morning (well, so far at least !)

[stluke] 06/3/2013 09:42

Watching this like a hawk and we add shortly on this weakness, althought the historic figures themselves were not knock out they confirmed the turnaround and it was all there written down about where this is heading, the next set of figures will show a vast leap up in profits and the housing maket is only heading one way for the forseeable.

[bluebelle] 06/3/2013 08:36

Muted market reaction to a good set of figures. Lower profile than many of its peers and undervalued compared to them also. I suspect a re-rating will come at some stage.

[stluke] 28/2/2013 07:53

Cracking set of results, its all about the near/mid term future here, turnaround complete with 2013/14 looking very good, both home and land sales looking very profitable and a one off PFI profit of £1.4m to boot.

[battlebus2] 28/2/2013 07:47

Results as expected with further progress into the next half, only disappointment was the small 0.5p dividend.

[bluebelle] 27/2/2013 12:51

Don't forget BDEV !

[stluke] 26/2/2013 10:41

Looking forward to results thursday if those of Bovis, Permission and Redrow are anything to go by this week.

[battlebus2] 20/2/2013 12:20

Hoping for a chunky dividend this time.

[bluebelle] 20/2/2013 12:09

Lagged behind the rest of the sector a bit recently - half year results due on the 28th.

[bluebelle] 24/1/2013 14:02

Galles
Many thanks - very interesting.

[galles] 23/1/2013 09:27

Housebuilders enjoy state-backed boom

Five years ago, Britain's housebuilders were struggling to survive. Home sales had halved and land values were plummeting. Now, a 1930s-style state-backed building boom is seen as the panacea for an ailing economy – and the country's biggest housebuilders are reaping the benefits.
David Cameron, the prime minister, has spoken of "getting Britain building" – with business secretary Vince Cable championing new-build programmes as a way to get real demand into the economy quickly. Planning minister Nicholas Boles has suggested countryside twice the area of Greater London should be covered in houses.
If words translate into action, it could boost an industry that has already been buoyed by government efforts to stimulate construction and mortgage lending.
At the largest-listed housebuilders, almost a fifth of sales has been supported by government schemes, such as FirstBuy and NewBuy. And the Bank of England's Funding for Lending scheme has encouraged banks to advance cash to homebuyers, and slightly to improve mortgage availability.
Largely as a result, the FTSE housebuilders subsector has risen 46 per cent in the past six months, despite stagnant UK house prices. Companies such as Barratt, Taylor Wimpey, Berkeley and Redrow have been delivering record increases in profits, with earnings up 40-50 per cent in the past year.
Noble Francis, economics director at the Construction Products Association, said housebuilders would suffer if the government were to squeeze its stimulus – but "that's not going to happen".
Funding for Lending is expected to continue until 2014. The government has recently injected a further £280m into FirstBuy, which reduces mortgage rates for first-time buyers. For investors, the question is the extent of the housebuilders' reliance on schemes to sustain new-found profitability.
Arguably, much of the hard work to turn their businesses round had already been done.
Although housebuilders were badly affected during the financial crisis – with smaller companies going bust and listed groups forced to raise more cash and write down land values – they were also able to exploit falling prices to buy land cheaply.
According to Knight Frank, land prices fell by as much as 60 per cent from the peak of the boom in 2007 to the end of 2009. It prompted many to gamble on a recovery.
Galliford Try, for example, raised almost £120m to buy land at distressed prices.
The bets have paid off. Even so, housebuilders have stayed focused on profitability rather than sales. They have built more lucrative family homes rather than apartments, targeted London and the southeast, and built on land bought at the lowest prices.
That has delivered sharp growth in margins: from about 9 per cent to 11 per cent last year.
They continue to buy land, as well. Barratt, for example, is buying at its fastest rate ever. Between them, the listed housebuilders have an average of five years' worth of land in their banks.
But profitable housebuilders do not necessarily deliver government objectives.
Housing starts fell 10 per cent last year – to less than half the 263,000 homes a year needed to match demand. Smaller and medium-sized builders still suffer.
It has inspired accusations of land hoarding. Kate Houghton at Campaign for the Protection of the Rural Environment, says: "We understand that housebuilders need a pipeline of sites behind them and that they have a business to run.
"But, equally, if they have development permission, they should be concentrating on getting houses built."
According to the Local Government Association, there are 400,000 plots with planning permission awaiting development.
One problem is that housebuilders are essentially land traders so, when plot prices are expected to rise, they have little incentive to develop land.
"The major housebuilders are not going to double the number of units they build because it's not in their interest," says Mr Francis.
"It would halve land values and margins. If they built too fast, it would reduce the sales price – and they are unlikely to do that."
The biggest hindrance is still mortgage availability. Aynsley Lammin, analyst at Citi, says housebuilders will increase volumes but only as the market and mortgage availability allow.

[exbroker] 14/1/2013 13:01

Are you calculating the market cap yourself and if so how many shares in issue are you using.
If you are getting the info from a broker not all of them are good at this.I do know!!!

[sphere25] 12/1/2013 22:12

At the time I posted (7th Dec), the market cap of GLE stood at around £90m, which put it roughly a couple of million ahead of the required amount to gain entry into the FTSE SmallCap Index.

Looks like GLE has to turnover "at least 0.035% of their shares in issue (after the application of any investability weightings) based on their median daily trade per month for at least ten of the twelve months prior to the annual index review"

[exbroker] 11/1/2013 18:56

Sphere25
re my post 163, what market cap on what date did you use to establish eligibility?
Did you get this info off a broker, if so some are better at this that others!!!
My system is giving me conflicting signals which is odd.
I may have to do a trade and weightings analyst on this one for the June review.

[stluke] 11/1/2013 14:49

Cheers BB2, looking good here and would hope to see £2 and over £100m market capital by results.

[battlebus2] 11/1/2013 13:53

I.C. MJ Gleeson (GLE) sold 53 per cent more homes in the six months to December, boosting 65 per cent to £33.2m. Profits for the full year are expected to well ahead of last year. We keep our buy rating.

[bluebelle] 11/1/2013 08:11

Yes, very positive : initial market reaction seems positive also.

[stluke] 11/1/2013 08:03

Very positive sounding first half and upcoming year, really good sector to be in.