Bellway Share Discussion Threads

[compnews1] 09/8/2018 09:59

Investors do not seem to like the positive result posted yesterday although I think is is a much safer share to buy (No debt +cash, sale up) among others. Investor Chronicle recommend "BUY"



Extract from IC
"Valuations aside, the market’s initial reaction seems positively churlish in view of the anticipated 22 per cent operating margin, which should lead to “another year of significant earnings growth”. Revenues were up 16 per cent to almost £3bn, while Bellway exited its July year-end with net cash of £99m (from £16m in 2017), despite forking out £784m on bolstering its land bank. There was also a symbolically important milestone with over 10,000 new completions through the period – a first for the group. The average price of a Bellway home increased by 9.4 per cent, but management warned that growth rates would moderate going forward – which probably did for the shares as well. Buy at 2,916p."

[philipo1] 31/7/2018 07:33

Housebuilders could be on the up today on the back of a sector retreat and good half year results from TW.

[dr_smith] 12/6/2018 14:32

Yes, trading update looked "as expected"..then share price tanks and I find CRST Hy report which says:
"Our experience of generally flat pricing against a back-drop of continuing build cost inflation has, however, had an adverse impact on our margins and we have taken a number of actions to seek to offset build cost pressures and invest in areas of greater housing affordability. "
On my speed read of BWY, I didn't see any similar comment, will have to read again, but CRST comment seems to have hit the sector.
I haven't decided yet whether that is reasonable..or whether others (e.g. BWY), haven't employed "flat pricing" so not the the same issue.

[gp1948] 12/6/2018 09:20

BWY trading update out today.
In the year to end of July 2018 they will have sold over 10000 houses at an average price of £280000. A record achievement for the company. BwY are on a P/E of 7.9 for the current year, falling to 7.4 next year.

[compnews1] 27/3/2018 09:09

I find it odd too, investors tend to like high PE stocks. Ok, there are uncertainties but it is a solid business, revenue & profit up. This is a stock I would keep piling when price drop.

[ygor705] 26/3/2018 08:17

The share price looks cheap to me at around the £30 level. Steady improvement in both profitability and dividends have been ignored by the market. Fundamentals continue to look good and adjusted for interims I make the PE around 7 1/2. What do management need to do?

[karateboy] 11/12/2017 15:47

I hope the first half report is going to be as good as BKG.

[r ball] 23/11/2017 06:07

But possibility is now there.

[mkmmkm1] 22/11/2017 22:26

Do you really think a Tory Government will force CPO of housebuilders' land banks??!! Absolute rot.

[r ball] 22/11/2017 20:57

Errr..no. Land banking tax! You need to analyse the land banks the house builders have against build rates.

[rick802] 22/11/2017 16:36

Thought today's budget was quite good for the building sector?

[arja] 22/11/2017 15:43

not certain why builders hammered after the budget ?

[mmedleyy] 16/11/2017 13:09

Looking at BWY for a potential long. Price has shown strong volume/support at the 34.10 area, this coincides with the 50ma and the .5 fib. RSI and STOCH oversold at 34.10 Entry on strong break of todays high. TP 1: 38.00 TP 2: 40.00 SL: 32

[acamas] 30/10/2017 09:39

Mortgage rate rise could spook house builders, some mortgage holders have not had a rate rise in 10 years also I believe it will push up the price of any imported materials a little . The Director sales at BKG on the backend of last week did little to help us

[grosvenor] 30/10/2017 09:35

All house builders going down - Budget this month - anything to do with this?

[bostonborn] 30/10/2017 09:04

What's going on here then this morning, broker downgrading, threat of interest rate rise or something else? Any information much appreciated.

[ganthorpe] 26/10/2017 08:44

Still on a historic price of 10x earnings and including 84.5p final. Prospects for current year maybe a 10/15 per cent increase in yprofits/dividend . Dividend 3x covered already. Not dear but after big rise over the year may not get to 4000 for a while. Just my 2p worth

[arja] 23/10/2017 18:13

what a performer and now a NOR situation ! Any special reason why ?

[r ball] 17/10/2017 07:12

Reaults day. Comment?

[ntv] 25/7/2017 13:15

lots of stuff coming out about bellways leasehold scams featured on bbc website
hope they have to pay up big time DTRB
short like the banks on PPI

[pilgrim] 14/6/2017 08:59

Sweet update, up 4pc so far. Will it hold?

[nigelbarker] 17/5/2017 15:50

ex div tomorrow i think

[communityheat] 04/4/2017 09:14

Is the UK about to have a district heating scandal? One needs to ask if house builders and Heat providers are cashing in on installing incorrect heat specification generating extra cash?

[the_equaliser] 07/2/2017 09:01

The new housing strategy for England includes forcing councils to plan for their local housing needs and giving them powers to pressure developers to start building on land they own.


The government says at least 250,000 new homes are needed each year and local councils and developers need to "get real" to the scale of the challenge.

Reducing the time allowed between planning permission and the start of building from three to two years