Berkeley Share Discussion Threads

[r ball] 03/9/2016 20:12

It's a concertina company. Berkeley has grown and shrunk at least twice before. This is why it had sufficient funds to buy cheap land in 2006 onwards which underpins profits now. The other builders nearly went bust and did not have the money to do so. The partnership with N Grid is the way forward.

[raffles the gentleman thug] 03/9/2016 18:03

just regular dividends excel1, £1 interim and £1 final =- £2 a year over five years through to 2021 - all covered by guaranteed profits of £2bn coming through between now and 2018

[excell1] 03/9/2016 17:49

How will this happen raff,special dividends?

[raffles the gentleman thug] 03/9/2016 14:57

That is exactly what it is doing tattooed93, it is winding itself down. Unlike other home builders BKG has been through an abnormal period of expansion in 2013 and 2014, which is why we have £3.25bn of gross margin arriving over next three years.

They have made it abundantly clear that this should decline downward to a normalised level of £2bn going forward, which is why they have no need to retain such an abnormally high level of earnings. They still have £10 a share to pay out over the next five years, and despite this will still be able to retain some earnings to re-iinvest in inventory.

[jrphoenixw2] 03/9/2016 13:49

Hehe!?
It's their Capital Return Programme. They have far more cash sitting on their balance sheet than they currently have plans/need to draw on in future. So they're returning it, in steps, to the company owners; us!

[tattooed93] 03/9/2016 13:18

is the company not winding itself down by handing all the cash back

[jrphoenixw2] 03/9/2016 13:11

Yep, and as often happens you then see sectorial read-across, hence here to other property stocks. One sneezes, the others catch a cold.

I think there was also sector rotation going on on Friday. Property was doing ok last week, Miners were getting hammered, and then that somewhat reversed [profit-taking] into the close on Friday.

Looking forward to the results on Tuesday. Which reminds me I should read/re-read the previous results so I'm primed on how things looked at the last meeting in April.
Since I now have that open, here is a link in case it's of use to anyone else. Note it's the full version, 33 pages in .pdf: hxxp://www.berkeleygroup.co.uk/media/pdf/0/c/Analyst_Presentation_-_FY_30_April_2016._FINAL.pdf

[catswhiskas] 03/9/2016 12:25

Housebuilders faded after McCarthy & Stone warned on margins .The retirement home builder tumbled 11.7% to 185p after warning it had to offer more generous sales incentives in the wake of Brexit the FT reports in its daily round up .

[jrphoenixw2] 02/9/2016 20:08

It's a nervy market still, esp in the more sensitive sectors incl housebuilding etc. Minor news can quickly be over-focused upon. Hence something of a volatile week [though +3.30% WTD is not to be sniffed at, esp. vs +0.8% on the index]

But as they say 'May you keep your head whilst all around others are losing their's'.
We're on a CY of about 7.3%, the economy is looking good, the exchange rate is favourable to offshore investors. There's a chance of stamp-duty relief/tinkering in a week or two... I remain positive.

[raffles the gentleman thug] 02/9/2016 19:45

I think many are reading far too much into the suspension of this Barnes development scheme. Its peanuts in the scheme of things, representing only 7 high end units, and frankly there could be any number of reasons for not continuing, and I am sure we learn more Tuesday ...

[excell1] 02/9/2016 18:21

No offence meant henry and indeed none of us can influence the share price of this
FT100 stock.Good luck with whatever you decide to do.I have decided to buy in and
hold for the long term and collect the divi's along the way.No point in holding cash in the banks these days.

[henrylightningbolt] 02/9/2016 17:26

excell1 Berkeley is a FTSE100 share & what I say is unlikely 2 effect the share price. I was only responding 2 a question. I will not post anything negative again of course. If I am in a share I am quite happy 2 hear all opinions positive or negative & news good or bad. Berkely R paying a divi of 200p a year which is an excellent reason 2 hold what ever the share price does short term. Good luck 2 U.

[excell1] 02/9/2016 17:17

Well done indeed henry for your successful trade.Please however do have the decency not to keep posting the same news that has already been mentioned several times on this board in an attempt to get back in at a lower price. As always when we sell a stock one takes the chance on whether the stock will continue to rise strongly (which I do) or whether that particular stock will fall and you may choose to buy in again.Good luck on whatever you decide to do.You may even be tempted to buy in again at a much higher price.Let's see what Tuesdays statement says.

[catswhiskas] 02/9/2016 17:17

Many thanks henrylightningbolt may be this is a question for the AGM if anyone is going .

[henrylightningbolt] 02/9/2016 17:05

Thanks CatsWhiskas I saw the news posted here earlier. My selling finger has been too twitchy these past couple of days. I don't think I'm cut out 4 buy & hold. Obviously got 2 get over this problem as I have 2 put my money some where. Never had this problem 2 deal with before. Reduced my total shares portfolio buy 1/3 in the last 30 minutes of trading.

[catswhiskas] 02/9/2016 16:53

Well done Henrylightningbolt with your recent trades excellent news.Do you know what time that news actually came out ? I don't like holding shares on trading statement days Monday will be very interesting after a big rally on the ftse will know better after todays close on the DOW as Monday is a holiday in the US.

[henrylightningbolt] 02/9/2016 16:44

I saw the "news" & decided it wasn't positive. Fair enough not 2 start a project but 2 stop half way through is worrying. So I sold my 751 shares at 2759.34p.
Took a brilliant 718.00p profit. Thanks 2 all 4 your help & advise. I've also sold
6 of my other shares. A sort of panic sell because I was sitting on a lot of profit & the FTSE100 had risen so much today & might fall a bit on Monday. Sort of got on a selling roll & couldn't stop. Will of course consider buying back. Best of luck 2 all holders.

[raffles the gentleman thug] 02/9/2016 16:07

London new build housing market is hardly saturated when the City with 9m inhabitants is struggling to even add 50,000 new units a year - so thats just nonsense

[catswhiskas] 02/9/2016 15:56

I hadn't seen that piece of news either will have to make a decision over the weekend whether to sell on Monday before the trading update on Tuesday.This stock is very volatile any news from the company about abandoning projects half way through construction will be fuel for the shorts.

[jrphoenixw2] 02/9/2016 15:42

Yep, only adds to pressure to de-taxify/'detoxify' the recent chill winds in property purchase/investment

[cancun tango] 02/9/2016 15:26

Inner London new-build housing market saturated, warns broker

Mortgage Concepts Associates director Mike Richards said recent changes to the buy-to-let market meant high end London assets were not as lucrative as they used to be because investors were unlikely to achieve the returns they once did in the past.

hxxp://www.mortgagesolutions.co.uk/specialist-lending/2016/09/01/inner-london-housing-market-saturated-says-broker/