Barratt Developments Share Discussion Threads

[hiddendepths] 07/9/2016 07:48

Awesome. The cash generation is phenomenal.

I can't find anything untoward in these figures, not a thing. This is really unusual.

[scapital] 07/9/2016 07:30

Good set of results.

[19bells] 02/9/2016 08:22

Why the big hit in building sector today?

[robbiereliable] 30/8/2016 10:19

Thanks Dr. :)

[dogwalker] 30/8/2016 08:37

That all makes sense.

[dr_smith] 29/8/2016 22:48

RR:
IMO..Yep I am of same opinion as your previous post, demand increasing equals increasing potential for sales.
As to share price decline (Brexit factored out), I reckon market share price is largely driven by day traders, institutions and the like.
As property has good demand, interest rates are low, gov't incentives are there, it is all 'good' so implicitly priced in and the future cannot be rosier, so "bad news" is the only possible shift factor/black swan that can influence the share price for the day trader... hence the downward decline, with a ripple effect as we move away from Q1 when housing sector company reports can be extrapolated for the longer term, a time when sentiment is likely higher...IMO.

[robbiereliable] 29/8/2016 21:06

Evening all, just been reading the NT book and reminding myself how not to mess up. I am up a nice amount with this share, due to buying near the bottom of the seismic drop. However ignore the black swan, and drawing a straight line from the old performance to now, BDEV shares were in steady decline, and in theory would be around 525p. Can anyone come up with a reason why this shouldn't be my sell value? Has anything dramatically changed with the company I haven't heard of... Apart from brexit effect.

[taffee] 24/8/2016 10:40

is there really a housing shortage?
hxxp://moneyweek.com/merryns-blog/the-uk-doesnt-have-a-housing-shortage/

1 million properties lie empty


myth of the housing crisis
hxxp://www.spectator.co.uk/2015/02/the-myth-of-the-housing-crisis/

you may have have to google 1 and 3 articles

[taffee] 24/8/2016 07:47

There is a shortage of property on the
Market at any one time owing to gov props there is not a shortage generally it's just in the wrong hands

For evidence look at 2008/2009 loads of supply on the market... Also it's estimated there are 1 million empty properties in the uk

It's a speculative bubble

[lauders] 23/8/2016 12:22

taffee has been muddled for a long time if you look back through all the posts. Doom and gloom are his/her motto! The BREXIT matter was a good time to take profits I must admit. I held I am back through my pre-BREXIT buy price now. I always maintained this was a buy and hold for me and I am sticking to it, partly because it is so difficult for me to manage the place I hold these shares. Not easy to instantly buy or sell etc.. More hassle than it is worth. Hence the buy and hold strategy! I just hope to collect the dividends and capital repayments and forget about the "noise".

[podium] 23/8/2016 11:40

I suspect he's getting muddled with commercial property. Housing supply is lower than demand. Housebuilders still doing well.

[stuart37] 23/8/2016 11:09

Taffee,
Not sure where you are getting your info from but it sure is dodgy! There is a permanent shortage of property in the UK and right now it is more acute than ever - RICS and others will confirm this. The land argument does not hold water as no Govt has the balls to make sweeping changes to planning regs and build all over green belt.
And, strangely enough, all housebuilders who have reported since June 23rd have said its business as usual which is why they are all recovering nicely except for London centric builders like Berkeley.

[taffee] 23/8/2016 10:40

hope it gets to 500p ish again....another great shorting opportunity imo

rates are 0.25% because things are really really bad...there is no shortage of property its a speculative bubble...no shortage of land just 6% built on and 9% including roads and rail

[scottishfield] 23/8/2016 09:20

It's been a great recovery share so far, adding.

[19bells] 26/7/2016 13:46

Affordable housing is not Barratts. How long will it be before they start looking into corporate renting?

[supasapi] 14/7/2016 17:30

apart from green belt we need to let builders build wherever they want with minimal interference - we'd see a lot of affordable dwellings emerge with downward pressure on prices which will be of benefit to all

[lauders] 14/7/2016 16:30

Quite correct followtheleader: Our Capital Return Plan combines the ordinary dividend together with a special cash payment programme. Under the special cash payment programme we anticipate proposing a special cash payment of £125m proposed with our FY16 results payable in November 2016, and a special cash payment of £175m proposed with our FY17 results payable in November 2017.

We therefore expect to return around £678m of cash through ordinary dividends and special cash payments to our shareholders over the two years to November 2017, which equates to a total of 67.8 pence per share.

[followtheleader] 14/7/2016 16:22

BDEV was a no-brainer around 370p and I take it there will be a special dividend paid again in which case it does look to be inexpensive. Don't you also get a shareholder discount if you buy a new house with them?

This one? might be worth watching for some good gains.

One of my tiddlers Westminster Group (WSG) has now started to post some good gains today after one of their loan for equity partners has just cleared selling the stock they converted and there is now no overhang. So much potential and things appear to be just starting to click together. There is big news promised by the end of July on a mammoth Memorandum of Understanding. Worth some research I would suggest.

As they say dyor

[dadedidodu] 14/7/2016 13:12

BANK OF ENGLAND SAYS HOUSING AREA OF WEAKNESS

[richj5000] 14/7/2016 08:03

Just to cheer everybody up; my daughter and her boyfriend have put a bid in for a house in a town close to London. They are in rented accommodation, having already sold, and only need a small mortgage. Turns out there are several people after the place and it's going to go to sealed bids this week.Not much of a downturn there then!

[mfhmfh] 13/7/2016 11:06

I'm in too. was surprised by the fall at the start of the day. share price starting to improve although only very slightly. hopefully an interest rate cut tomorrow will be the stimulus we need.

[blondeamon] 13/7/2016 08:19

Great entry opportunity, I'm in.

[mj19] 13/7/2016 07:42

Barratt Developments posted a trading update for the year through June: "The Group has traded well throughout the financial year, delivering a strong performance. (...) Total completions (including JVs) for FY16 were up 5.3% at 17,319 (2015: 16,447) units. Affordable housing represented 17% (2015: 18%) of total completions. (...) Total ASP (Average selling price) on completions in the year increased by c. 10.6% to c. £260K (2015: £235.0K), with private ASP increasing by c. 10.5% to c. £290K (2015: £262.5K). (...) Profit before tax for FY16 is expected to be up by c. 20% to c. £680M (2015: £565.5M), driven in part by increased completion volumes, growth in ASP and an increase in our share of profits from JVs."