Mccarthy & Stone Share Discussion Threads

[7kiwi] 25/7/2017 09:25

The ground rent is entirely separate to the service charge, and it is the ground rent that is securitised. There are no services provided in return for the ground rent.

The difficult thing about the ground rent is that it is index linked, and after a period goes up quite substantially. I would think the Government will look closely at these arrangements. It might be fair to have some sort of ground rent, but I suspect the nature of it will be changed to be less usurous.

[wan] 25/7/2017 08:59

Uncertainty, the market hates it!

Given the bad press, how will it affect enquiries whilst the 8 week review is underway? It hardly provides a backdrop for an incentive to sign on the dotted line, so at the very least another bump in the road that might get a mention during reporting.

[melody9999] 25/7/2017 08:42

and if there is a risk to the ground rent portion of the FRI revenue, I expect MCS would re-classify some of the services / costs they provide to mitigate any impact.

[skinny] 25/7/2017 08:39

The current proposal is for houses only.

[mfhmfh] 21/7/2017 11:14

some big buys today.

MACD turning positive for the first time since April/May.

[speedsgh] 06/7/2017 15:11

McCarthy vulnerable to housing slowdown, says Numis -

[bigbertie] 05/7/2017 09:37

More or less what they have been preparing people for. At least the expected good bits have materialised, ie better margins, improved order book, and more sites opening. The big increase in sites will not be till next FY so will not deliver results till 2018 / 19 year, as I read it. But worth holding IMHO. Good luck all.

[wan] 05/7/2017 09:34

On track with a smidgen of uncertainty, which is not to be unexpected. Let's not forget that the market is (should be) forward looking. So hopefully the tide will turn when the forecast uplift for 2018 starts looking like more of a reality.

[its the oxman] 05/7/2017 08:39

Ok update, all is fine it seems, but it will be next year when sales really pick up. Until then it remains a little out of favour I guess.

[aishah] 05/7/2017 07:57

I exited last December. Uninspiring update imo. Off my watch list now.

[melody9999] 05/7/2017 07:28

you may be right spoole. I think their RNSs are very conservative too. Whereas most companies tend to lead with the good news ....and you have to search for the not so good....with MCS its almost the other way around.

In the longer term, with an ageing population... you would have thought they were in a good place to grow

[7kiwi] 05/7/2017 07:27

What does the RNS tell us:

1) Sales openings weaker this year, compared to last: 39 compared to 58.

2) Reservation rates holding up, but with fewer sites, unit sales will likely be lower.

3) This lower opening rate will impact the start of next FY, with fewer units available for sale until the new sites come on stream.

4) Prices holding up, but the higher prices, with same sales + reservations value implies fewer sales this year.

5) If they push to get unit sales up by year end, then it is likely they will have to discount or offer other incentives. They should probably hold the line on pricing and accept fewer units, although this will impact turnover and profits.

Not disastrous, but no longer showing strong growth. 80 sales releases next year will give a blip upwards, but so far only 55 permissions granted, so FY19 won't have such strong sales releases.

55 sites equates to about 2,200 units, so quite a way from 3,000 unit target.

[spoole5] 05/7/2017 07:08

The market really does hate this stock!

[melody9999] 05/7/2017 06:56

SP has already factored in bad news .... look at the chart. A good statement "reservations broadly in line" " margins improved". I would expect to see a share price recovery but lets see what the market thinks.

[eastbourne1982] 05/7/2017 06:33

This will drop first thing.

[argylerich] 05/7/2017 06:24

Nothing really not to like

[gswredland] 05/7/2017 06:13

Steady as she goes Statement

[bigbertie] 03/7/2017 08:40

concensus forecast seems to be a drop in adjusted profit before tax despite margin improvement in 2H. They have previously said they will meet expectations for the year but this latest weakness makes me wonder if they are going to miss. The most important thing in the trading update is confirmation that they have opened more sites and got more orders for next year IMHO. Good luck all.

[mfhmfh] 30/6/2017 10:42

trading update on July 5th - if it's positive then should set us up well for next year. IMHO.

read somewhere earlier this year that PEG is 0.3 but can't be 100% sure about that. DYOR.

[bigbertie] 30/6/2017 09:54

165 looks a good price, I'm back in. The results will not be great but they should confirm the opening of more sites in good locations, which should pay off next year IMHO. good luck all

[mfhmfh] 29/6/2017 09:50

'Jefferies International today reaffirms its buy investment rating on Mccarthy Stone Plc (LON:MCS) and raised its price target to 288p (from 265p).'

[wan] 28/6/2017 07:10

Thanks that's a good article, which underscores one of the rationales for me being invested here, in other words and above the demographics, it is quite possible that we will get a tail wind which is not yet factored in.

[mfhmfh] 27/6/2017 20:21

hxxp://www.bournemouthecho.co.uk/news/15373009.McCarthy___Stone__building_more_retirement_homes_could_save_the_country_billions/