Barratt Developments Share Discussion Threads

[salver2] 18/5/2017 08:17

Boring - how's he short going!!

[salver2] 18/5/2017 08:16

Boring - how's he short going!!

[taffee] 18/5/2017 06:59

There is no shortage of property in
The uk its a speculative bubble based on cheap money and props if all is good why are interest rates 0.25%?

[bullshot1122] 16/5/2017 09:25

is that why more & more people are moving over to the Blues ?
is that why the Market is trading at all time highs ?
is that why unemployment is low ?

COME ON .....let's be realistic !!!!!

The Building Sector might steady for your reasons but as long as there are many people entering the Country, there will continue to be a shortage...just like space on the roads / school places / Hospital Beds / Oh !!! and definitely more Prisons needed...
a continued increase in the Population will need a huge amount of money(from where ? )

LET COMMON SENSE PREVAIL

[kulvinder] 15/5/2017 20:26

Soon this will be a play thing for the shorters as they start bleeting on about interest rate rises stagnating the housing market especially if more evevidence emeges from London thst prices are starting to soften. We are very close to the top of the cycle now. Need to be weary. When the Tories get in again fir another 5 clear years the rich will shag everybody from the rear.

[lauders] 10/5/2017 16:15

Nice to see us break 600p. Now let's continue the recent momentum. Nothing wrong with today's RNS! Happy to hold.

[robbiereliable] 10/5/2017 11:59

Made up!!! I jumped in on the drop when all the doubters and Bremoaners where sewing the seeds of despair. What a buy!

[oggyrocks] 10/5/2017 08:33

Revised upwards to 750. Special dividendHappy days.

[oggyrocks] 10/5/2017 07:28

Great statement today. Happy days

[lauders] 06/5/2017 01:37

Trading update on Wednesday according to IG: and BDEV's website:

With luck it will be steady as she goes at BDEV and no nasty GFRD type surprises!

[lauders] 01/5/2017 05:55

Also think this text from the link below is interesting:

Last year, in the 2016 annual report, we summarised the many positive tailwinds currently being enjoyed by large housebuilders in the UK and remarked how fortunate we were to own Barratt Developments and Bellway, then valued at less than a ten times multiple of earnings. We talked about the undersupply of housing in the UK, ongoing low interest rates, reforms to the planning system and a raft of helpful government incentives. Well, this year, those tailwinds are all still blowing and those businesses are now valued at roughly eight times earnings. Their share prices fell sharply in the wake of the Brexit vote and haven't yet fully recovered. We leapt at the opportunity to buy more shares at much lower prices, adding to both holdings. The share price falls were probably driven by a combination of fears about both house price falls and fears that there could be a short-term drop in transaction volumes, both of which were very plausible short-term scenarios although neither of which we think makes much difference to the business's ultimate value. Why? Because (and apologies to those who have heard this from us before) falling house prices cause only a temporary decline in accounting earnings; the real damage caused to the business is far less than at first appears to be the case because falling house prices are compensated for by much lower land costs, land being a builder's single biggest cost. In other words, cheap land bought in a downturn turbocharges profits in future years.

During 2016 parts of the London housing market, especially new-build properties priced above £1 million, have seen a substantial fall in transaction volumes and falls in selling prices of around 10%. This was the case before the Brexit vote, and was most likely caused by both the new punitive stamp duty levy - that becomes disproportionately painful between £900k and £1m - and also the recent tax increases on both "Buy to Let" and second properties. It was this London slowdown (and the reasonable probability of it continuing or getting worse), that caused us to reduce the size of our holding in Barratt Developments. However, we used the proceeds from that sale to buy more Bellway shares and also to add a third housebuilding investment, Redrow. We continue to think that Barratt is a very attractive investment at these levels (we still retain a sizable shareholding, after all), although Redrow and Bellway are more attractively priced and come without exposure to the shaky part of the London market. For the year in question (i.e. March '16 - December '16) Bellway's and Redrow's shares are almost unchanged and Barratt has fallen over 16%. This is despite all three businesses reporting almost unalloyed strong trading conditions (except prime London as previously mentioned), increased sales and profits and the prospects of considerable further progress over coming years. We remain greatly enthused about our house-building investments, which we think are substantially undervalued. Also, and very importantly, we are not invested in any sector that is more "transparent" than housebuilding, which helps to gives us a high degree of comfort with the size of the investment we have made. "Transparent" is in quotation marks because it has a very specific meaning in the context in which it has been used here. Transparency means the degree to which our own research can effectively monitor the fundamentals in a business without us having to wait and read the financial results. In this case we can and do visit building sites nationwide, visit sales offices, speak to the numerous listed competitors, land suppliers and land buyers. Also, by monitoring internet activity we can track indicators of revenue in something close to real time.

[lauders] 01/5/2017 02:56

James Illsley, portfolio manager of JP Morgan UK Equity Core agreed, saying that housebuilder stocks are still trading at reasonable valuation with fantastic earnings momentum behind them.

“Fundamentally the housing market in the UK continues to be undersupply. That’s a structural backdrop. The ongoing Government’s support for help-to-buy really help buyers in terms of financing and deposit as well, supporting the net demand for housing in the UK,” said Illsley.

Be Selective When Investing in Housebuilders

While valuation of housebuilders still look cheap, investors need to be very selective when investing in them, Barrat said.

I only hold BDEV so hence the reason for posting the article here. Applies to other house-builder boards too of course.

[yogaboy] 27/4/2017 14:51

Sick squid here we come!

[yogaboy] 24/4/2017 13:10

Well today's rise is more than the divi so the momentum is still upwards.With hindsight, it would have been a great "insurance" decision to sell before the referendum, thus covering the risk of a Brexit outcome. As a long term holder, that kind of trading isn't my style, but we live and learn.It is pleasing to note that in less than a year, the Brexit drop has been fully recovered.

[lauders] 24/4/2017 12:37

Will we actually make it back up to 600p+ in the not too distant future? Would be nice!

[lauders] 20/4/2017 02:45

Agreed yogaboy. A drop expected today as ex-dividend but if it closes blue then even more bullish! What a buy this was after BREXIT! Well done to those who bought in when the price dropped drastically at that time :-)

[yogaboy] 19/4/2017 15:04

I'm no expert but this looks to be moving inexorably back to six quid.

[taffee] 19/4/2017 11:25

there is no shortage of property its a speculative bubble

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

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

[deadly] 18/4/2017 22:44

Taffee hasn't a clue, he's been spouting the same rubbish for years, and just doesn't understand there'll be a housing shortage for years to come.

Take this nonsense from 2010:

taffee - 25 Oct 2010 - 09:06:44 - 4678 of 18717 Taylor Wimpey - TW.

slim prospect?.....uk housing bubble is bursting and could fall 50%...tw land bank is based on lunatic prices therefore the tw business model is potentially buist.

[lauders] 15/4/2017 16:02

BDEV is ex-dividend this Thursday so expect a decline in share price as a result on the day:

[salver2] 13/4/2017 17:00

And yet the share price goes up and up

[taffee] 13/4/2017 11:18

property market in doldrums


boom started in central London so the plunge there is significant...all this with
all the props!

[lauders] 09/4/2017 06:22

Evidence, if any needed, that housing is still a UK priority:



Yesterday our representatives and Barratt Homes hosted a visit by Sajid Javid, Secretary of State for Communities & Local Government, accompanied by Basingstoke MP the Right Honourable Maria Miller and a number of local Councillors.

This is the second high profile visit in just over six months to this flagship development at Chapel Gate in Basingstoke. As commented on by Maria Miller at her last visit the 26-acre brownfield site fits well into current government plans to make good use of previously developed land. Mrs Miller also said: ‘The government’s housing priority is to deliver more affordable homes to buy and to rent, and this joint working between Sentinel Housing Association and Barratt’s helps to achieve this.’

[robbiereliable] 06/4/2017 14:19

Building firms always fit crumby boilers. I don't really see any change in what's been happening over the past 10 years apart from regulations and inspections getting stricter