Forterra Share Discussion Threads

[essentialinvestor] 06/9/2024 12:25

Just having a look at the sector this morning as it happens.

The operational gearing here is huge and obvs applies in both directions.

[onehanded] 06/9/2024 12:19

Watching as soon May be a clear buy. If house builders upticks with new government plans late this year.think £1.70 is a below market value, and see £2 as a target in the short term. Watching and waiting.

[creditcrunchies] 30/7/2024 07:40

These should be 140-160 really at the moment

[creditcrunchies] 30/7/2024 07:39

Personally I think they're over valued if you look at their revenue stream

[t-trader] 30/7/2024 07:07

Expected a dividend cut and right thing to do under the circumstances.

Results a little worse than I was expecting.

Optimistic things will start to improve moving forward and hopefully with the government supposedly building 1.5M homes our bricks will make there way to some of these.

[creditcrunchies] 30/7/2024 06:07

Fall in revenues and a large dividend cut with some hopeful news it will pick up soon

[purplepelmets] 15/7/2024 12:59

On a tear since Sir Jimmys mate sir Kier and his merry band of commie anti British doofuses came to power. Strange. I suppose open borders = spiking housing demand

[libertine] 04/7/2024 09:36

Thu, 04th Jul 2024 10:08 Alliance News


Forterra PLC, up 4.5% at 171.80 pence, 12-month range 190.60p-122.20p.
RBC started the building product manufacturer with an 'outperform' broker rating. Also gives Forterra a 210p target price.

[elff] 29/4/2024 18:19

Has anyone a view on why this is up 4% today?

[creditcrunchies] 24/1/2024 11:30

Positive SCVR on Stocko on this cyclical stock says good value for this brick builder

[m_kerr] 11/10/2023 19:50

you have to have a longer term view with this stock, it's not going to generate steady predictable earnings, as the earnings are lumpy. you should value stocks like this on average profits on a 5-10 year view, not taking one year and extrapolating.

[essentialinvestor] 11/10/2023 16:49

I mentioned on the last warning the earnings downgrade cycle
was unlikely to be complete and we have confirmation on today's update.

At a guess there is at least one more warning to come.

[edmundshaw] 11/10/2023 16:44

"very overpriced in this market"? Do you mean looking only ahead around 12 months? Most of us here have a rather longer view...

If this was a startup with a one year PE of 12-15 and a 2 or 3 year outlook PE of 5 or 6, I doubt you would be sayng that...

[johndoe23] 11/10/2023 09:56

Surprised hasn't dropped more. Under pressure a whole so maybe priced in. 13.8 x forward earnings a bit rich though for a profit warning

[rcturner2] 11/10/2023 09:26

Unfortunately this is still very overpriced in this market. Profit will be down by more than 50% probably eps of 10p and debt now going in the wrong direction.

[bbmc] 11/10/2023 09:20

Not a real surprize really probably mostly priced in. Question is when will the turnaround in demand occur.....and will it be New Labour building new houses or simply a cut in interest rates that re-ignites demand. There is still a lot of pent up demand. One for the bottom drawer for next few months in any case. Any views at these levels whether there could be some industry consolidation?

[t-trader] 11/10/2023 08:52

Agree, not a great update but wasn’t really expecting much

Sit and hold for me and wait for the economic recovery to start, whenever that may be

[dope007] 11/10/2023 08:06

A clear wait and watch now. Can see these drifting lower for a while now as there is no reason to buy.

[m_kerr] 01/10/2023 11:33

yes, and in a nutshell, that, along with the barrier to entry by way of requirement for clay reserves, and disciplined nature of competition represents the economic moat here.

[edmundshaw] 01/10/2023 08:21

Customers prefer not to import as, for a start, imports are more expensive. Reduced demand starts by hitting imports.

[dope007] 30/9/2023 07:58

Brexit hasn't affected transport costs

[m_kerr] 29/9/2023 19:25

the cost to transport bricks over here must cost a fair whack, and wouldnt have thought brexit would have made that process any easier or cheaper. that provides some protection from being undercut on price.

forterra have their own 'surebrick' product. no idea if it will be popular, but housebuilders are always looking to cut corners wherever possible.

[essentialinvestor] 28/9/2023 22:39

Is it just a cyclical volume (and margin) call ..

The UK brick manufacturers have to compete with imports for starters.


And this from Persimmon, how widespread could this be in a few years: