We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Taylor Woodrow | TWOD | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | - |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| Top Posts |
|---|
Posted at 10/9/2007 18:45 by spob There's a new thread and in case you hadn't noticed, there's a reason why there's no July, August and September on your chart. It's not TWOD anymore It's TW. now. |
Posted at 04/7/2007 12:12 by shakeb Markpun why are you not posting on the TW. board. I do not know anything about Wimpey but TWOD I am very familiar with. Can you pls advise on the share price. I am wondering how they arrived at the current range. What price would you consider cheap if I may ask. I am not sure if to follow the Wimpey historical price. Thanks. |
Posted at 10/6/2007 07:41 by markpun Morning Folks,Interesting... Market banks on housebuildersGraham Searjeant, Personal Investor Something odd is happening to the FTSE 100 index. To keep it as a measure of the top companies, the constituents are reviewed each quarter. A company that has slipped to 101 may not be relegated but insiders that drop beyond 110 have to go and outsiders that rank in the top 90 most valuable are normally promoted from the second-tier 250 index. This week it was time to tip your bowler hat goodbye to Bradford & Bingley (B&B), the least valuable of nine banking groups in the top 100. Fear is in the air, if not on the ground, that the housing market is over the top, activity will fall, bad debts will rise and prices will go limbo dancing. Not good for a specialist mortgage lender such as B&B. Relegation is a blow to pride if not the share-price killer it once was. Promotion still bestows status in the business world. That makes it more intriguing that B&B is replaced by Barratt Developments, now the UK's biggest housebuilder. The mortgage lender is now regarded as a worse proposition than what used to be called the speculative builder. Barratt has made it via merger rather than favour, after a £2.2 billion takeover of Wilson Bowden. It is not the first, nor probably the last builder, to join the top 100. Persimmon, the pioneer of bids in the sector, has been established since buying Westbury. Both of these will be leap-frogged by the proposed Taylor Woodrow/Wimpey combine. Rival predators may yet intervene in the nil-premium merger after ten weeks' silence. In 2000, near the height of the dot-com boom, housebuilding shares traded at seven times earnings when profits were growing strongly, which is why they were backed here, as they have been several times since. Solid sectors, literally bricks in this case, were neglected as funds poured money into Marconi. Seven years later Persimmon shares have risen by 600 per cent, Wimpey by more than 400 per cent and Barratt by more than 300 per cent. Even Taylor Woodrow, which timed an acquisition poorly, has virtually trebled. Over the same period the FTSE 100 has risen by 4 per cent and the 250 by 94 per cent. Value investing has paid, as in utilities. And bidders have come in to buy marketable assets, in the form of building land, and strong cashflow. Ten years ago there were more than 30 quoted housebuilding companies. Most were tiddlers. Bigger groups combined housing with general construction and civil engineering. Two thirds have disappeared from the stock market. The housebuilding industry has prospered and been more stable than expected, partly because it controlled supply. Instead of each company expanding output to raise profits, leading builders have grown by taking over others. Berkeley Homes made a leveraged buyout of itself on behalf of shareholders. Consolidation has not helped the housing shortage but the industry has skilfully avoided a repeat of the 1980s' boom and bust. That memory, when mass unemployment and repossessions met peak output, hung over the sector for 15 years. It lifted after builders sustained only modest damage when the last house price boom was halted by interest rates in 2004. Wimpey's profit margins, which had expanded from 13 per cent to 17 per cent, fell back to 13. Barratt and Persimmon did better. Recent troubles in America, where their interests are much smaller, have been more painful for Taylor Wimpey's would-be partners. These new groups can control complex brownfield developments or conversions. They can contemplate new off-site construction and see "carbon-neutral" homes as an opportunity, not just another daft regulation. Housebuilders, along with big commercial property developers, make up the most important new sector of the FTSE 100. Their ratings have edged up to about 10.5 times earnings, still well below the market average but now on a par not only with mortgage banks but also with Royal Bank of Scotland or Barclays, which have much higher dividend yields. Banks now offer better value but maybe run greater risks for less growth. |
Posted at 16/5/2007 17:33 by deanforester The SPs of TWOD and WMPY are way out of line compared with the merger terms.At the current levels, either WMPY ought to be about 700p, or TWOD should be about 440p. The equilibrium level isd no doubt somewhere between, but TWOD looks a bad buy if the merger goes ahead, compared with WMPY. |
Posted at 02/5/2007 09:58 by judge jury No idea really. It all depends on whether you think the merger will go ahead or whether PSN will gatecrash. WMPY is still 10% below the implied merger price. If PSN suddenly announced they werent going to do anything, I would expect TWOD to fall and WMPY to rise such that this "premium" is more or less eliminated. However, the premium could be eliminated by TWOD falling 10% and WMPY staying the same. Or alternatively, WMPY could fall 5% and TWOD by 15%.I have said before that (based on some simple sums), if the merger goes ahead, it could produce PBT of some £925m and assuming the combined group gets rerated to about 9.5x PE, then it could trade on about 540p. However, the market wont rerate it in a hurry and the combined group would need to demonstrate that the synergies are being achieved. Obviously, if PSN announce a bid, TWOD would rise substantially. But the bid would need to be 550-600p really. So, it could go up, down or stay the same. Sorry this is not very helpful. |
Posted at 20/4/2007 09:23 by judge jury Looks like a game of chicken and egg going on. TWOD/WMPY waiting for PSN to show their hand. PSN waiting for TWOD/WMPY to reveal the revised merger details. It wouldnt surprise me if the merger turned into an acquisition (perhaps of WMPY by TWOD). Certainly, they are going to have to introduce a lot of cash into the deal somehow. |
Posted at 13/4/2007 11:42 by judge jury WMPY is still trading at about 9% below the implied merger price, suggesting there is still plenty of speculation that PSN will bid for TWOD ... and TWOD's UK assets are obviously attractive to PSN.I myself am a bit confused, since Peter Johnson's purchase of TWOD shares this week would seem to rule out a PSN bid (unless I am missing something). Also, PSN have got to be pretty scared of TWOD's US business, given the continued bad news from other housebuilders over there. The formal merger documents should be coming out soon. It will be interesting to see if the terms of the merger change at all. There has to be a decent chance of a return of capital being introduced. Assuming no PSN bid, the c.540p price will in my view depend on (1) whether there is a return of capital and (2) a rerating of the merged business, which presumably wont happen until (a) the merger beds down and integration risk reduces and (b) there is better news from the US market. |
Posted at 27/3/2007 09:38 by judge jury Whatever the outcome of this situation, I do think the merger parties have been pretty badly advised. The parallels with the Domus merger are there for all to see - two of the largest UK housebuildings which have underperformed their peers agree to combine to create a giant, but on relatively unattractive terms for shareholders (nil premium merger). The deal is particularly unattractive for Beazer/Wimpey shareholders but they only agreed to this because Bryant/TWOD is a potential target. If the deal is blown apart (when someone makes an offer for Bryant/TWOD) then Beazer/Wimpey are sitting ducks.All of this trouble could have been avoided if the merger parties had thought more of their shareholders and offered a big cash return - £1bn to both TWOD and WMPY shareholders would have been eye catching. Presumably, these type of conversations took place between the respective advisers and executives. Looks like the advisers werent very convincing. I bet they are worried now. |
Posted at 27/3/2007 09:11 by judge jury Just doing some quick sums to see how realistic a PSN bid for TWOD might be.TWOD's net assets per share at 31/12/06 was 364.7p. Any bid wont close until about the mid-year, so net assets per share at this point will be somewhere close to 400p. From memory, BDEV paid about 1.8x net assets for WLB and PSN paid about 1.45x net assets for WBY. I can't see TWOD recommending any bid for less than the WLB multiples, so lets assume PSN will have to pay 1.8x net assets. That would mean they would have to pay about 720p per share, or about £4.2bn. I dont think PSN could afford a £4.2bn all cash bid. However, they could probably afford something like a 50:50 cash: share bid. However, PSN faces some quite big risks. For one, they know nothing about the US and it will take them a lot of time to get up to speed on all of TWOD's markets over there. OK, they may want to spin it off, but they would have to buy TWOD assuming they would take it on (they are very unlikely to find a buyer of these assets within the bid timetable). I also wonder whether the competition people might want to take a quick look at a PSN bid. Then there are the normal acquisition/due diligence risks (although PSN are quite good at buying companies). When it comes down to it, I just think PSN wont want to pay close to £2bn in goodwill. It would be betting the firm and risking all the good work that it has done thus far for a business that may not be that good. Quite simply, this is a deal they dont need to do. I hope I am proved wrong though. |
Posted at 26/3/2007 16:55 by judge jury I think it is interesting to note that the 51:49 merger ratio doesn't seem to have kicked in quite yet.TWOD seems to have closed today at 475p. However, this includes the final dividend of 9.75p, so the ex-dividend price is 465.25p. If the merger ratio was working, WMPY should have closed at a cum-dividend price of 661.84p (ex-dividend price of 648.74p plus the final dividend of 13.1p. However, WMPY seems to have closed at 653p, a 1.4% discount to the implied merger ratio. I dont know whether this is significant at all and it will be worth monitoring in the next few sessions. 1.4% doesnt seem too great and it is possible that I have missed something to do with shares under option. Conceivably, however, it may imply that there is a risk that the merger will not complete (e.g. PSN bids for TWOD, hence the slightly premium, and WMPY is left at the altar, hence the discount). I may be reading too much into this. However, I do think that the lack of any cash return as part of the deal was somewhat disappointing and perhaps opens the door to a PSN bid if they were thus inclined. And it's more likely that they will bid for TWOD than WMPY in my view (lots of land, not being used properly - similar to Beazer, ironically). |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
