Forterra announced trading today.
High demand means low stocks which means good pricing in due course; in the very short term (for Forterra until January) margins are impacted by higher input prices, but from Jan, price rises will completely cover that. I expect Ibstock will be the same, but with price rises already in place (per their last trading update on 3/11).
FORT have managed their energy contracts well, as have Ibstock, so as long as the government does not have to limit industrial energy use (though again that is just short term - over Winter if the wind does not blow enough and LNG is hard to source), both companies will be doing very well as we get into 2022, and even better when the new production swings into focus in 2023; I see no demand issue in the medium term, as the UK market is obviously capacity constrained; and when the new production is running, imports will be outpriced.
One for the bottom drawer, for me. Well, two actually! :)) |
looking at the buy's and they do look like buy's then there are some big numbers going through but price is dropping but not enough for them to be sell's not even late reports from day before, I actually do think there is a big order being filled here and once the tr1 comes out the rise will follow ???? |
The plans for their Nostell factory are intriguing. UK Market leaders... |
Maybe. But it's just cheap at the moment... |
It would seem, judging by the current price, that they judged it about right when they chose a flotation price of 190p 6 yrs ago! |
FORT or IBST? ...or both? |
Ameriprise recently purchased BMO to add to Columbia Threadneedle so it is probably the joint holding |
Just topped up to average down, can't work out why this hasn't taken off yet and back to below 200 again... |
Who is Ameriprise? Bought up 5.5% of the company while it is cheap... smart move IMO.
Not so long ago, just before the COVID slump, this was well over £3. And I don't think the need for building materials has dropped since then, and we are 21 months closer to having the new enhanced, more efficient production facilities up and running. |
Very good deal getting such long term finance at 2.19pc but a surprised that paying so much for the RCF |
Or stake building and wanting the lowest possible price in, like what Vulcan are doing? |
Or that there's a hint of money tightening? |
m12
Theres a reason for everything. Not knowing what it is doesnt mean there isnt one ! Could be the country has just discovered theres a shyster in charge |
No reason for this to drop, just great buying opportunities on the way when it falls! |
 Ibstock looking to a green future, says HargreavesBrick manufacturer Ibstock (IBST) continued to benefit from strong demand in the latest quarter but supply chain problems are beginning to bite. Hargreaves Lansdown, on the other hand, is looking at the benefits of its long-term strategy.Ibstock said performance in the third quarter was held back by supply chain disruption but not enough to derail guidance of full year underlying cash profits coming in above £93m. It also announced plans for Ibstock Futures, a new division that will focus on growth initiatives, including a £50m new factory to manufacturer brick slips, a special tile with the appearance and texture of real clay brick.Analyst Laura Hoy said management had successfully navigated a 'challenging' few months, passing inflation costs on to customers through price rises that have 'left the group in a position to focus on growth with a new segment dubbed Ibstock Futures'.'If Ibstock can execute successfully, it would put the group in a strong position to capitalise on a shift towards more sustainable building materials,' she said.'While brick homes have appeal in the UK market, these thinner, lighter, lookalikes come with a lower carbon footprint.'The shares closed flat on Thursday at just over 206p. |
Construction Enquirer headlineConstruction "powers ahead" as supply shortages ease |
Chunky order to fill at 200p maybe? |
Added another 50% to my holding today. Happy with the RNS this week.. Good confidence builder. |
good solid company with great future growth and demand for the products, read well on paper not taking into account some purchasers who imported will now be looking closer to home now, great entry price, share price should steadily climb from here imo, all good so fill your boots. |
This now has huge potential on the share price front, as bad and sad as the pandemic is and has been, this company has leaned itself to be more efficient and the maximum the share price has been at 3.20 ish, should be exceeded over the next 12 months. All bodes well for a 12 to 24 month hold in my portfolio. |
Thanks for that link.
If EPS returns back to pre-covid 18p or so , this is undervalued in the long run. Happy to hold. |
Ibstock plc issued a Q3 trading update this morning. The company enjoyed strong Q3 performance supported by continued robust demand in core markets. Supply chain issues are being managed, expectations for adjusted EBITDA for FY21 remain unchanged, a little ahead of previous expectations of £93m. A new business unit, Ibstock Futures, has been established to capture growth opportunities in new, fast growth sectors of the UK construction market. Valuation is reasonable, forward PE ratio around 12, and the company is reasonably high quality, net debt of £81m. Business is not yet fully back to pre-Covid levels, but it has recovered more than the share price which is roughly flat through 2021 so far. Not a bad recovery story to monitor, but no share price momentum and so no compelling reason to buy at present. But not a bad company to monitor for now...more from WealthOracleAM |
Ibstock plc issued a Q3 trading update this morning. The company enjoyed strong Q3 performance supported by continued robust demand in core markets. Supply chain issues are being managed, expectations for adjusted EBITDA for FY21 remain unchanged, a little ahead of previous expectations of £93m. A new business unit, Ibstock Futures, has been established to capture growth opportunities in new, fast growth sectors of the UK construction market...keep up to date with stocks with WealthOracle AM |
The growth strategy is really appealing now.
Originally bought these for the apparent undervaluation and the good prospects for the relevant construction markets. But come 2023/24/25 production is looking very positive and the improved carbon footprint will be putting this firmly in the ESG crosshairs...
Pleased with the update. I hope they are underpromising! :)) |
I make it that we should be close to pre pandemic levels or at least just shy of them. Which we will over the next 6 to 9 months if we hold I believe. |
Register for streaming realtime charts, analysis tools, and prices.
Hot Features
Premium
