Shawbrook Share Discussion Threads

[nurdin] 12/3/2016 12:46

Challengers are trading at rock bottom prices and I am tempted to selectively add one or two in my portfolio,SHAW among them. However it may prove prudent to wait until after the budget to see what that brings.Here is Hargreaves Landsdowne comment on the outlook:



'But governments do love to tinker with housing rules. Further curbs to buy-to-let are possible, perhaps removing all mortgage interest relief. Restricting the reliefs available to buy-to-let investors is an easy saving for the Treasury. Paragon, a niche lender focused on the buy-to-let market could be impacted, whilst the builders themselves have been selling significant amounts of their properties to investors, rather than owner-occupiers. Berkeley Group probably has most to lose here, selling much of its output to investors.'

[hutch_pod] 12/3/2016 10:13

Thanks GHF. It does seem SHAW is being pulled down by BTL/Budget fears but their broader portfolio should continue to do well unless the UK slips into recession. Hopefully some clarity after next week..

[glasshalfull] 11/3/2016 15:59

Peel Hunt have now also upgraded SHAWs forecasts.

In an update today they say that following a meeting with the company,

"Shawbrook remains our preferred pick given its diversified lending mix and capital strength, leaving the group well positioned to deliver sustained growth.

The 2015 results support our investment case and we upgrade 2016E/2017E PBT by +9% and +15%, respectively, given the higher assumed levels of originations.

We also increase our target price by 10% to 385p. Currently, the shares are trading on 1.6x 2016E P/NAV for a forecast ROE of 20%."


Regards
GHF

[aishah] 10/3/2016 21:55

Wonder if SOF who hold 44.6% (111m) of the equity are looking to sell more. They last sold 25m in November with a lock-up period of 90 days thereafter.

[glasshalfull] 10/3/2016 16:25

Didn't think I'd be presented with an opportunity to obtain stock in the 270's.

Numis upgraded forecasts by 10% in the current year and 11% next following results. The upgrades indicate Numis's 29.5p becomes 32.3p this year & they move from 34.0p to 37.7p next.

Peel Hunt have also initiated coverage on ALD, SHAW & OSB indicating SHAW their preferred play. I've previously held a position in ALD but their BTL exposure is certainly weighing on market sentiment.

"Underlying PBT up 63% to £80.1m and ahead of consensus for £78m.

Group reported an improved cost of risk at 24bps (2014:36bps ) and the cost to income result (48.3%) continued to improve and looks on track to be below the 40% target by 2017.

The group NIM for 2015 improved to 6.2% from 6.1%. The CET1 ratio remains robust at 14.4% (2014: 11.6%). SHAW reiterates confidence in its near and medium term outlook. No changes to our forecasts (2016E PBT/EPS £98.1m/29.4p) ahead of the meeting. Our DCF model suggests 15% upside.

We forecast.... deliver an average ROE of 19% and the shares trade at a 2016E P/NAV of 1.8x or 2016E PER of 10x.

Shawbrook is our preferred pick in the specialist lending ('challenger bank') segment given its diversified lending mix and capital strength, leaving the group well positioned to deliver sustained growth. We maintain the Buy recommendation."


Regards,
GHF

[opodio] 07/3/2016 09:00

OSB results 17 march

[opodio] 04/3/2016 14:52

Someone accumulating shares

[dlku] 03/3/2016 11:24

could be a cracking run from here for the sector

[dlku] 03/3/2016 10:27

ALD, OSB and SHAW


OSB looking cheap down here :)

[ayl30] 03/3/2016 08:26

Good results

[future financier] 02/3/2016 17:20

Weird - Google Finance says the closing price was 278.56 - although the graph indicates 304.8 ???? Similar but smaller discrepancy on ALD

[ayl30] 02/3/2016 14:45

SHAW results tomorrow I understand

[future financier] 02/3/2016 10:05

Pateman must either be financially stretched or else a fool - and I think I know which I favour. Can't see him lasting long - there is major shareholder on the Board who doesn't suffer fools gladly. I know this was supposedly "to cover tax liabilities arising on vesting" of an award of shares - but it still does not look at all clever. Did they really have to be sold at that precise time?

[future financier] 02/3/2016 10:01

Virgin results today - and market sentiment generally over last few days

[johnv] 02/3/2016 09:54

What caused this to go up?

[future financier] 02/3/2016 09:24

Shawbrook Group PLC (LON:SHAW) insider Pateman ,Steve sold 120,919 shares of Shawbrook Group PLC stock in a transaction on Friday, February 19th. The stock was sold at an average price of GBX 258

He timed that almost perfectly – price bottomed at 252.7p - Current price 296

Nice vote of confidence from the new Chief Executive!

[masurenguy] 20/1/2016 16:02

Credit Suisse has initiated coverage with an outperform recommendation and a price target of 410p.

[dlku] 17/12/2015 08:55

wants to rally hard

[dlku] 16/12/2015 12:28

cookin on gas

[dlku] 16/12/2015 09:27

Questor:


The shares still look good value for the long-term, with the well-diversified Shawbrook - which trades on 13 times forecast earnings, falling to 10 times next year - looking like the pick of the bunch.

[albanyvillas] 16/12/2015 08:40

So things might not be as bad as feared....

hxxp://news.sky.com/story/1606443/dont-panic-pra-boss-tells-challenger-banks

[masurenguy] 12/11/2015 08:53

Masurenguy 12 Aug'15 - 20 of 27: Pollen Street Capital still retain a 59% shareholding in Shawbrook following the April IPO. They could start to divest this in October after their 6 month lock-in period expires, so there could be a potential overhang on the shareprice in due course.

Unfortunately my earlier speculation proved to be prescient. As FF states above, potential ongoing disposals by the major shareholder after the next 90 day lock up expires could keep a lid on the shareprice here. On that basis I've now exited here this morning at a very small profit but will continue to monitor this on my watchlist.

[future financier] 12/11/2015 08:32

Market did NOT like that - even down to 325 at one point. With a holder of 44.6% obviously looking to offload this is going to keep a firm lid on share price for a while to come until they are out. The positive spin is that it provides a buying opportunity??? But then I have little faith in the new CEO.

Sit on my hands I guess.