Brickability Share Discussion Threads

[alter ego] 24/2/2023 12:55

just added some. xd but looking good value

[tole] 15/2/2023 18:40

https://masterinvestor.co.uk/equities/small-cap-catch-up-cyber-security-bricks-shipbroking-and-debts/Brickability Group (LON:BRCK) – Beating Market ExpectationsThis group has continued to trade strongly across all of its business divisions since its interims to end September last year.Now the construction materials distributor is expecting to announce better than market expectations for its year to end March 2023.Brickability is a leading construction materials distributor, serving customers across the UK and Europe for over 37 years through its national and local networks.The group, which is the UK's leading UK brick factor, supplies over 550m bricks annually and has over 55 locations across the country, with over 600 employees.In addition, it has a roofing products supply and fit business, while also being a leading distributor of imported timber products, towel rails and radiators.We will have to wait until late April, when the full year Trading Update is due to be announced, to assess its real strength in this year and its prospects going forward.Analyst Andrew Gibb at Cenkos Securities rates the group's shares as a Buy.His estimates are for current year sales at £639.9m (£520.2m), with adjusted pre-tax profits of £40.1m (£34.7m) with earnings of 10.8p (10.1p) and an increased dividend of 3.2p (3.0p) per share.Gibb concludes that the group's current valuation does not reflect the inherent strengths of the business, which are its structural growth, its low fixed overhead base, its experienced management team and its diverse product mix.The shares closed last night at 73p, valuing the group at £218m, which I consider is too low a rating – with 100p being very feasible based on those broker estimates.

[tole] 15/2/2023 07:13

https://citywire.com/funds-insider/news/expert-view-vodafone-flutter-plus500-brickability-and-cerillion/Brickability valuation too pessimistic, says Shore CapitalShares in building materials group Brickability (BRCK) are pricing in a steep decline in earnings which Shore Capital believes is unwarranted.Analyst Graeme Kyle retained his 'buy' recommendation on the stock, which softened 3%, or 2.3p, to 7.5p on Tuesday.The group released an unscheduled trading statement that confirmed it now expects full-year 2023 earnings of 'at least £47m', 5% above Kyle's estimate.'Brickability has a number of secular growth businesses – not fully appreciated by the stock market, in our view – and that new-build residential-only accounts for 50% of end demand, with the remainder being repair, maintenance and improvement, and commercial construction,' he said.Kyle said the group trades on a full-year 2023 price/earning ratio of 6.8 times and offers a dividend yield of 4.5%, but he said 'this prices in a steep decline in Brickability earnings post-full year 2023, which in our view is too pessimistic'.

[brickdontblink] 14/2/2023 18:36

Funny to see people bragging about quick trades on this. I suppose it feels like safe trading on something so spectacularly undervalued, but seems daft to me. Say you buy in, wait for a seemingly inevitable 10% jump, then move back to cash. You can't time the market and by jumping out, you miss the next predictable uplift and pay fees for the pleasure. Can you get 10% from cash? Will the shares you sold BRCK to buy safely net you the kind of yield? Personally think you'd be hard-pressed to get the same level of value elsewhere while getting paid to wait. You're buying what...£1.20 to £1.70 maybe, for 60-90p? No brainer buy and hold for me.BDB

[riskonricky] 13/2/2023 18:31

Shame to announce this so close to the div. pay date. Sucks for those looking to reinvest them.Nevertheless, happy to see BRCK succeed - fantastic management here. Well done.

[blackhorse23] 13/2/2023 13:27

Sold it & bought CURY

[2magpies] 13/2/2023 11:53

'Bricks' & mortar is it?

What's that you say? "you can't go........"?

[thelongandtheshortandthetall] 13/2/2023 10:40

Yeah I think the market will wake up soon.

Rough back of envelope calcs:
£30m after tax profit
300m shares.
PEx10 = 100p per share.

Not unreasonable for an ambitious, growing company.

[2vdm] 13/2/2023 10:33

A very solid set of results and a credit to the BOD.

[thelongandtheshortandthetall] 13/2/2023 10:12

^^ That'll do too :)

[thelongandtheshortandthetall] 13/2/2023 08:03

That'll do :)

[cordwainer] 09/2/2023 12:07

Still got my original holding but managed to turn a quick 13.3% profit over last few days (bought 60p sold 68p). Need cash elsewhere for corporate action and no dry powder otherwise.

[thelongandtheshortandthetall] 07/2/2023 13:23

Bought a few today.

Can see these joining the rest of the sector.. in a little bounce.
Very happy to see the COO spending £200k buying shares in December.

Sharelock has BRCK earning PBT (not EBITDA) of £38m in 23y.
EDIT: 'Incredibly' Cheap with market cap around £200m IMO.

[sphere25] 03/2/2023 13:37

All kinds of bullish moves out there. Barely done anything and pretty much all buy and holds have gone up. A very stark contrast of late compared to last year.

BRCK is well out of kilter with the wider market and sector as the price continually makes new lows. Markets are no longer fearing the worst and re-pricing shares from overly bearish positions with much more bullish moves based on individual fundamentals.

Clearly there are profit warning's too so each company has to be taken on its own merits - still very easy to get caught out. When looking at BRCK and how far the price has fallen, it might be that BRCK has been oversold.

This sector is seeing bullish momentum from the lows too. The house builders are continuing the positive momentum of late too. BRCK is lagging but someone has come in and picked up a notable 4m at 59p so it might be worth keeping an eye on to see if someone is trying to clear the sellers here to form a bottom and eventually a move similar to others.

Clearly it will depend on trading, but the doom and gloom hasn't happened and isn't forecast, so it could be a case of much more resilient trading. Now even if that means unspectacular growth, it could still be enough to warrant a bullish turn from oversold and overly bearish territory.

We will have to see how the year goes of course - it is hardly a one way street. The interesting thing is that someone isn't waiting and has bought a big chunk today and there is some decent demand for shares at these price points.

The chart is horrible though and it really needs to break 65p, but some possible tentative first bullish signs here with a big buyer coming in. Liquidity is playing a part here too. Fund managers have still been trying to sell out of less liquid shares which could present an opportunity in some.

So you could end up with a shorter term technical bounce too if enough sellers have been mopped up at these levels. Should there be a whopping big clear out, then clearly you could end up with a monstrous spike higher, but one step at a time.

Other interesting activity out there in positions I am in:

SRC - Some nice mopping up going on there with a stable chart but it is trying to stick its head above 60p for some possible follow through momentum and a breakout of the range.

MER - A couple of holders selling down but the market is gradually eating through the stale bulls and a tidy 1.45m picked up today. Some big buy orders on the book at 207p right now as well.

So a few things worthy of keeping an eye on.

All imo
DYOR

[cordwainer] 02/2/2023 12:29

Been falling like a brick through an upstairs window so far this year (you decide which storey). Situation a bit obfuscated by acquisition and precarious customers maybe, but regardless of whether using adjusted or non-adjusted eps, valuation is getting tempting. Trouble is, I'd have to sell something else to add here.

[death by donut] 24/1/2023 13:10

Thanks BertieDbD

[bertiebingo] 24/1/2023 11:11

Cenkos adjusted diluted EPS 10.0 (23), 10.0 (24) . Non adj EPS 5.1 / 5.7.

[cordwainer] 23/1/2023 11:28

^ I expect Sharepad is much more comprehensive than Simply Wall St data. If that's the averages from 28 Nov it would be a relief.

[death by donut] 23/1/2023 10:18

Sharepad has 23 24 2510.3p , 10.3p , 11.5p

[cordwainer] 23/1/2023 10:04

My current notes on this holding:
'UK building products supplier, serving housebuilders, developers, general builders, contractors and retail. Revenues have more than tripled since end of March 2021 but margins down by more than 40%. Has been growing through acquisitions. Current EPS forecasts 5.1p (FY22) and 5.7p (FY23) according to the one analyst picked up by Simply Wall St.'

There was an ahead-of-expectations trading update by this time last year so can probably assume that is not the case this year. Next trading update likely mid April after 31 Mar 23 year end. Any improvements more likely to be towards end of or beyond the FY given the economic turmoil.

[alter ego] 16/12/2022 07:57

Now holds 6.8% of the stock. Decent amount of skin in the game.

[2vdm] 16/12/2022 07:30

And according to another RNS he's bought another 100,000 and at the current share price Bodes very well.

[cwa1] 15/12/2022 08:24

Indeed, a not insignificant purchase...or holding