Llef
I listened a couple of days back to the August earnings call.
Too bad I did not listen to it at the time because listening now with the benefit of hindsight you can see how the price has fallen in the two months plus since then.
Basically they can and do lock in input costs in the clay business but very hard to do in the concrete side.
I will do a small top up today encouraged by the BDEV AGM statement. |
 https://www.fool.co.uk/investing/2021/10/11/500-to-invest-2-dirt-cheap-uk-shares-id-buy-right-now/£500 to invest? 2 dirt-cheap UK shares I'd buy right nowRoyston Wild | Monday, 11th October, 2021 | More on: BWY IBSTImage of person checking their shares portfolio on mobile phone and computer Image source: Getty Images.The Ibstock (LSE: IBST) share price has fallen off a cliff. Down 22% since the beginning of September, investors have trembled over the potential impact of soaring inflation on Bank of England policy and fretted how this could damage demand for the brickmaker's products.Naturally, rising interest rates would make it more challenging for potential homebuyers to afford to buy. Comments coming from key Bank of England personnel seems to suggest that rate hikes could be coming very soon.Michael Saunders, a member of the rate-setting Monetary Policy Committee, said over the weekend that "markets have priced in over the last few months an earlier rise in Bank rate than previously and I think that's appropriate."Market-beating valueIbstock's recent fall means it continues to trade on a forward price-to-earnings growth (PEG) ratio of 0.1. A reminder that any reading below 1 suggests a stock is undervalued by the market. The firm doesn't just look like a dirt-cheap UK share from an earnings point of view either.For 2021 and 2022, the FTSE 250 share carries dividend yields of 3.3% and 4.4% respectively. This beats the broader FTSE 250 forward average of 1.9% by a decent margin.Another cheap UK share on my radarWorries over possible Bank of England rate hikes (along with fears over rising building material costs) have also shaken the share prices of many housebuilders.FTSE 250-quoted Bellway (LSE: BWY) is one of these recent casualties, down 13% since the beginning of September. But at current prices I think this is another UK share that offers brilliant all-round value. As well as also trading on a PEG ratio of 0.1 for 2021, Bellway's dividend yields clock in at 3.5% for this year and 4% for 2021.I thought both Bellway and Ibstock offered excellent value before the September and October sell-offs. And following those, falls I believe these dirt-cheap UK shares could now be considered too cheap for me to miss. I certainly think their recent share price drops more than reflect the threat of sooner-than-expected interest rate rises.Still looking goodFrom a long-term perspective both these companies still have terrific profits potential. Sure, Bank of England rates may rise from their record lows of 0.1% very soon. But I still expect them to remain well below their historic lows. Otherwise it could strangle the economic recovery as Britain copes with the twin problems of Covid-19 and Brexit.On top of this, homebuyer affordability should remain well supported by the intensifying mortgage product war. Lenders are bending over backwards with low rates, cashback and other perks to win business in an ever-more-crowded market.There simply aren't enough homes to go around in Britain. Therefore government will have no choice but to continue building to solve the crisis (the housing ministry has its sights set on 300,000 new homes a year in the next few years). All things considered, I think the future still looks bright for cheap UK shares Ibstock and Bellway. And I think they're great value buys for me following those recent share price falls. |
I read the annual report, and they say they hedge their energy costs, so it might not be an issue for this financial year. But renewable or not, they will still have to pay the going rate next year, which will cost a lot more.
The solar panels will obvisouly be helpful tho - might prompt them to add more where they can
"Ibstock’s first solar park was installed at our head office in Leicestershire.
With three manufacturing facilities based here, the solar farm provides
between 20-30% of the site’s normal electricity demand. The solar park
went live in Q2 2020 and generated circa 2.1MWh. " |
Check their website, 100% renewable energy and some solar panels at their plants? |
Im just wondering if higher energy costs are a factor in the fall here? |
paid 190p for a long term hold.
crazy valuation
tiger |
Must be Vulcan causing an overhang? |
TOPPED UP TODAY |
Crazy price... Forterra now over 50% higher, when it was under 20% only a few months ago. What has changed? Apart from FORT buying shares in the market for its employee sharesave scheme? |
Any news folks, still? |
Any news folks? |
hi, think its a great cyclical name . am long from 170p and agree with you. free cash flow is excellent. also appears this week on a Morgan Stanley private equity buy out candidate screen published by their excellent European strategy team. |
Competitors putting up prices as well now;
hxxps://www.constructionenquirer.com/2021/09/02/brick-makers-brace-market-for-10-price-hikes/ |
I think that is a good strategy , unless you need some cash in a hurry. Sit on hands time for me too. |
Managed to buy a few extra at 205p, which has made me a handy 15%.
But I am still happily holding all my long term shares here. We have been comfortably North of 300p in early 2020 and I see no reason why we should not revisit those levels and more. |
Seems to have an easy 10 percent move to me but I have thought that for a couple of months |
Ibstock building itself up for a rally,buy says the Sunday Times |
ready to break north? |
Looks like share price on the move North again. Didn't get round to adding any. |
Maybe not the place to get a multibagger but seems like a safe place to put some more money to me... |
Update and results look very good.
Market is a bit slow to respond here, but Ibstock is doing every bit as good as Forterra it seems, though without the share price reacting comparitively yet. |
Numbers published this morning indicate a solid recovery with revenue levels almost back to 2019 levels. Dividend also restored. New capacity won't come on-stream for another couple of years so it looks to be a continuing recovery story for the time being. Might make a good bolt on acquisition for a bigger group in the sector. |
Added to this myself today.
Forterra has rerated to a fairly sensible valuation around 310p, but has been up at 370p before the pandemic.
The disparity to the Ibstock price is crazy. Forterra share price premium a few moths back and more has been under 16-17%, but currently 44%. This is partly explained by Forterra decent results and forward plans in a booming market. While Ibstock is yet to report.
But... Ibstock is due to report TOMORROW!! Seems a great opportunity. Obviously nothing is guaranteed, but all the signs are positive... |
Adding to this, fort has popped today and ibst is left behind |
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