Bellway Share Discussion Threads

[soysoy] 27/10/2003 15:57

there is more on ben bailey thread about this share then here

[cert] 16/10/2003 20:43

As solid as you can get with excellent long term prospects.
As always, DYOR.

[soysoy] 16/10/2003 19:09

from city wire
Bellway has added to the mountain of evidence that housebuilders continue to thrive despite fears of a housing downturn and its shares remain an attractive investment.

Building for the middle market means that Bellway has avoided the first-time buyer market, the one area that has slowed because newcomers cannot afford to get onto the property ladder.


That is reflected in full-year results to July showing turnover up 23.4% from £773 million to £954.2 million and pre-tax profits up 35.1% from £125.3 million to a record £169 million.


Whatever figures you look at in the Bellway statement are good. Bellway sold 6,278 homes at an average selling price of £149,700 in the latest period compared with 6,044 at £120,000 in the previous 12 months.


Bellway delighted shareholders with a chunky rise in the interim dividend. The final dividend is also up, by 23.2% to 13.8p. That makes a total of 20p, up from 15.75p. The shares (BWY) climbed 13.5p to a new high of 718.5p.


Chairman Howard Dawe says Bellway remains committed to building quality homes in the middle market. Forward sales increased from £325 million in July 2002 to £380 million at the latest year end.


Despite the extra sales, Bellway has managed to increase its land bank and now has 18,400 plots with planning permission, enough to last for nearly three years. This is crucial given the slowness of local planning procedures.


Clearly the housing market remains resilient. Dawe says: 'Uncertainties surrounding economic conditions and concerns over military action in the Middle East dampened demand for new homes in late spring. However, since the start of summer we have enjoyed good market conditions throughout all our areas of operation.'


The new south-west division opened in April will contribute to profits in the current year and Dawe says an experienced managing director has been appointed to lead another division that will operate in the north Thames Gateway area. It is also intended to create a new division in the east of Scotland by next summer.


These moves will ultimately enable Bellway to raise its annual production target to 8,500 homes.


Citywire Verdict: Despite indications in the new government housing index released yesterday that house price rises are slowing in many parts of the country there is no evidence that housebuilders such as Bellway are feeling any pain. This is a solid company with good prospects, strong profits and a rising dividend.

©2003 Citywire
Companies in the news
Company Mid Change Approximate price on day of publication Price Change From Publication
Bellway PLC ( BWY ) 690 14 696.50 -6.50

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[ddav] 15/10/2003 12:35

They don't mention about the huge land bank and expansion of house building in the North then?
Even if rates do increase, houses are very much in demand in these more sought after, reasonable areas.

[bumpy dog [new]] 14/10/2003 22:01

AFX Roundup:

On the second line, Bellway drifted 8-1/2 pence lower to 696-1/2 after
better-than-expected annual results, coupled with management's dampening of bid
hopes, triggered profit taking in the stock. The group's pretax was up 35.1 pct
to 169.3 mln stg.
Whilst conceding that the results were strong, Smith Barney repeated its
'sell' advice on Bellway due to the deteriorating outlook for UK interest rates.

[soysoy] 14/10/2003 07:33

LONDON (AFX) - Housebuilder Bellway PLC started the current year with strong
forward sales after raising pretax profit in the year to July 31 2003 by 35 pct
to 169.3 mln stg from 125.3 mln a year earlier.
Turnover in the year was 954.2 mln stg, up from 773.0 mln stg.
After basic earnings per share of 106 pence, up from 78.6 pence, the board
raised the total dividend to 20 pence from just 15.75 pence last year.
The net asset value was also strong, rising to 483 pence per share at the
end of July from 400 pence a year earlier.
Chairman Howard Dawe said the group has remained committed to delivering
quality homes to the middle market and this has resulted in the value of forward
sales increasing from 325 mln stg in July 2002 to 380 mln at the end of July
2003.
He concluded: "Our proven track record, the strongest forward sales position
in our history, the exceptional quality of our land bank and the formation of
three new trading divisions, makes the board extremely confident about the
future."
[e-mail]
slm/

[soysoy] 14/10/2003 07:25

14/10/2003 07:00 UKREG Final Results

[me_cynic] 03/10/2003 17:16

Easy: They have had a good run over the past 6 months. Got a little bit
ahead of themselves. The shares in housebuilders usually rise Jan-May
but this was delayed by a few months by Iraq and the fears surrounding the
situation. People think they are cheap and bought in. Add in good results
and people borrowing huge amounts to purchase houses, low interest rates,
relatively low unemployment
a takeover ( was in TWOD ?) and they do well. I expect they will drop back.
The future depends on the factors I 've just mentioned.
FYI I sold these a few weeks ago. I did notice that houses around my area
are taking a lot longer to sell and asking prices have come down.
Hope to buy back later in the year.
Keep an eye on consumer spending and ask can house prices rise by 20%/annum
every year?. Also can these companies grow at 10%+/annum for a long time?
That's why their PE is low.

[darkvoices] 27/9/2003 17:29

I'm a relative newcomer to market trading... would appreciate comments on why the price of Bellway has slipped 11% in last two weeks? Any news on prospects for coming weeks?

[bumpy dog [new]] 08/8/2003 23:50

trt - thanks. Indeed, ROK is already on my watch list.

[trt] 07/8/2003 09:36

Well worth holding no doubt about it.

Have a look at ROK. Results due 12/08

Plenty of upside there also.

[bumpy dog [new]] 06/8/2003 22:20

From the Independent:

Northern exposure lifts Bellway

Bellway's decision to move away from the high-rise, high priced London market a couple of years ago is looking pretty clever given what is happening at the top end of the housing market in the capital. The mid-sized housebuilding group is now enjoying the benefits of surging prices in its North of England heartland, where it is building in more upmarket areas than before, and from the continuing strength in modestly priced suburban family homes in the South.

A trading update revealed yesterday that the average Bellway home is now 20 per cent higher than a year ago. Better still, the company reassured that operating margins have continued to improve. That is important because investors have feared the last six months have been tough, especially compared with the first half of 2002, which now looks like the red hot peak of the housing market.

Bellway shares (down a ha'penny to 641p) trade on a derisory 6.5 times earnings, but that's about the sector average and a substantial re-rating will have to wait until the other side of the housing market cycle, when the true mettle of the sector can be proved. The odds are still that, with planning rules so tight and demographic changes in their favour, the housing shortage should keep profits high.

In the meantime, worries over rising mortgage rates should be offset by Bellway's northern exposure. Hold.

[majic] 10/4/2003 15:38

Readable chart, great recent news alas wrong time (point on chart) to buy!

: |

[teeps] 16/7/2002 16:05

And of course this afternoon the share has tanked - typical!!!

[teeps] 16/7/2002 11:59

Just emergedfroma meeting toseeiton its way down- nevermind, when youcan't watch best notto be in ifin doubt imho.

[teeps] 15/7/2002 16:32

Didn't go down so closed out for 30 points. Good luck to those still short.

[teeps] 15/7/2002 14:30

Seems to be lagging both bdev and wmpy which are down 5% and 3% respectively today. All we have is a measly .7%

Will it catchup towards the end of the day?

[teeps] 14/7/2002 17:35

N - now it's closed below the previous low what target do you have -seems to be a fair amount of support at the 420p level as well as the current 440p level.

[teeps] 13/7/2002 00:15

Appears to be bouncing back up on some volume.

[teeps] 11/7/2002 15:26

N - back down to the 442.5p level - v.low volume. Will see if it can break it's recent low.

[teeps] 09/7/2002 16:16

N - looks like we're on our way. Wouldn't disagree though there might be a bounce at the 442p level. Pretty significant support level looking back over the last 2 years or so - 4 peaks if memory serves me right. Still waiting on the 7 day ema to breach the 200day ema and then we'll see where we're going.

[nirvs] 09/7/2002 08:26

I am also short Teeps from 475p...looking for it to break the recent low

[teeps] 08/7/2002 16:47

Volume picked up and price down to the 200day ema. Appears that 2/3rds of the volume were buys though i.e. buying on weakness. Hmmm.

Will be interesting to see what happens tomorrow but crossing the 200 day ema isn't exactly bullish, will it bounce though. Still think there's a double top in place. expecting a revisit to the 442p levels initially.

Anyone out there have a position?