Barratt Developments Share Discussion Threads

[the_equaliser] 22/9/2016 09:54

As i said before Bdevs CEO needs lessons what RDW CEO said
:)
Also Blackrock reduced abit, profit taking

Market is becoming more Traders against Investors i believe

Nice little B.S filtered on the Market with the American FED rate

No
Yes
No
to rate hike

[robbiereliable] 20/9/2016 07:10

I disagree arja. If people can't afford houses then they will rent, unless you think that everyone will live in tents. If we become a renting culture then the house builders will still build more houses but then keep the properties and rent instead, or sell to other businesses. More demand + low supply will always equal higher prices or higher rental charges

[arja] 19/9/2016 10:44

longwell - even if demand exceeds supply , the easy availabily of mortgages might determine whether house prices continue to rise . Being a potential buyer who can not get a mortgage means he is not in the demand equation .

[dr_smith] 19/9/2016 10:02

Longwell:
>I am seriously missing the point of investing.
IMO .. Yep me too see it rosey for long term..say 1-3 years at least, but believe share price is driven by day/short term traders say 1 day to several week term, where 'no change' is to be expected for builders, so better (for short term traders) to put money in sector where positive/changing news is possible, to make short term gain.. rather than long term slow and steady with jumps around results days (for this co and other sector members).
So market is traders and investors but volume is former so drives share price
Given low interest rates in banks / bonds etc, I am suprised there isn't demand (assumption on my part) by medium term buyers pushing the share price up and the wholse FTSE index, and these medium term buyers would balance the share price between the short term and longer term expectations.

[longwell] 19/9/2016 07:48

big dividend, undervalued against post brexit vote, no slow down in housing market as demand way past supply for next few years at least. no appreciable effect of weaker pound. these are the king of shares I have dreamed of having in my portfolio yet a lot of selling .
can only be profit taking or I am seriously missing the point of investing.

[robbiereliable] 19/9/2016 07:10

Thanks Lauders

[lauders] 18/9/2016 06:26

Someone else who thinks BDEV is a buy (admittedly stated a "short-term", which is where we differ!):

Another fact is that that the dividend is currently too high. The final dividend rose 19 percent to 12.3p – itself worth 2.45% of dividend yield. The consensus estimate is that the dividend payout for this year is forecast to be above 31p implying a forward estimated divided yield of 6.3%. That looks solid, given the big cash dividend cover in the last balance sheet. A solid looking short term buy in my view.

[lauders] 18/9/2016 06:06

From 30th August, so dropped back a bit since, but still makes them even more of a buy in the author's opinion ;-)



Solid housing

There’s been a housebuilding resurgence since the post-Brexit depths, with Barratt Developments (LSE: BDEV) one of the FTSE 100’s biggest winners in August. If you’d got in on 6 July, you’d be 50% up today with the shares on 500p. That’s not back to pre-vote levels yet, but it does highlight the irrationality of those who thought the UK’s chronic housing shortage was suddenly going to end once we leave the EU.

Barratt shares are now on a forward P/E of only 9.2, and even though the earnings growth of the last few years is set to slow, that still looks like a buy to me — especially as there are dividends yielding better than 6% on the cards, and they’d be strongly covered by earnings.

[the_equaliser] 15/9/2016 08:31

Yet again Redrows board knows how to look after there shareholders

[the_equaliser] 10/9/2016 10:50

Thankyou Lauders

[lauders] 10/9/2016 02:30

The firm has forward sales of £2.4 billion so far, up 4% against a period of strong trading last year, and recent sales trends have been “encouraging”, Barratt added.

Despite Brexit hitting the pound, the firm’s building costs should be largely unaffected as 90% of its materials are sourced in the UK, Thomas says.

Shares eased 2.5p to 504.5p after the results. The stock has jumped nearly 50% since post-Brexit lows but the shares remain more than 18% down so far since the beginning of the year.

The_Equaliser: A quick read of the latest RNS on BDEV's website shows:

Capital Return Plan

The Board proposes to pay a final ordinary dividend of 12.3 pence (2015: 10.3 pence) per share for the financial year ended 30 June 2016, which subject to shareholder approval, will be paid on 21 November 2016 to shareholders on the register at the close of business on 28 October 2016. Together with the interim ordinary dividend of 6.0 pence per share, which was paid in the year, this gives a total ordinary dividend for the year of 18.3 pence per share (2015: 15.1 pence per share). The ordinary dividend was covered around three times by basic earnings per share.

Under the special cash payment programme the Board is proposing a payment of £125.0m (12.4 pence per share), which subject to shareholder approval, will be paid by way of a special dividend on 21 November 2016 to shareholders on the register at the close of business on 28 October 2016. The Board anticipates a further payment of £175.0m to be proposed with our FY17 results payable in November 2017.

In total, the Capital Return Plan is expected to return around £963m of cash through ordinary dividends (based on consensus earnings) and special dividends to the Company’s shareholders over the three years ending November 2017.

[the_equaliser] 09/9/2016 14:06

I think most piled in to RDW previous day,
Good results and very good charman statement on bloomber
I missed that as holding PSN

next hike poss be oct RB.
The special divi
When is that being payed any idea ?

[robbiereliable] 09/9/2016 13:34

Indeed. I didn't expect a company weathering Brexit well and declared increased profits to have lost ground on share price

[the_equaliser] 09/9/2016 12:06

Bdevs chairman needs lessons from RDW chairman on what to say to help share holders :(
next movement RB. results

[robbiereliable] 08/9/2016 07:08

Very positive news story on Sky News last light. Pleased that they focused on the fact that BDEV have done well regardless of Brexit.

[robbiereliable] 07/9/2016 11:43

I also did well picking up after the black swan, but that is all it was. I am waiting for 525 and then I will reassess the value of the share

[hiddendepths] 07/9/2016 10:37

taffee - look at the cash generation and the net cash position. Sure, builders are cyclical but there's no sign we're anywhere near the top of this upturn. The government is committed to building a lot more houses for years to come and will ensure that companies find it economic to build them.

So this is very much in the low risk high return category at present. Everyone knows that won't last for ever.....

[deadly] 07/9/2016 10:30

Hello? ...and that was not due to any catastrophe of the sort you have bee spouting about for so long, and which is exactly why you should still be buying.

[taffee] 07/9/2016 10:23

Hello?.... Did nicely on the recent 50% drop thank you!

[deadly] 07/9/2016 10:17

....out comes the broken record again. How many years have you and will you be peddling the same old story, while you miss out on the divis and gains??

[taffee] 07/9/2016 09:36

that's as good as it gets imo....just like banks posted record profits just before they fell off a cliff.Without all the props where would property market be?...people forget we are in a mega property bubble based on hmg props...rates are 0.25% because things are really really bad and we have £1.6+ TRLLION gov debt and almost £100 billion deficit.This is also the second longest bull market in stock history.

Things are going to unravel pretty quickly when the bubble bursts time to sell builders again imo

[deadly] 07/9/2016 09:07

Hence the selling!?
Perhaps not better than than expected at 20% growth and the dividend is "relatively" low at 6%!

[crystball] 07/9/2016 07:48

A very good set of results!