Mccarthy & Stone Share Discussion Threads

[kevph] 19/6/2018 07:10

What do you think? McCarthy and sink like a stone?

[andrewbaker] 18/6/2018 13:41

It's good that Peel Hunt re-iterates it as a buy, 'cos I'm selling: had enough of this dross.

[argylerich] 13/6/2018 10:03

Peel Hut reiterates a Buy

[crystball] 06/6/2018 16:27

Not losing faith, just back on the long term hold backburner.

[jopper74] 06/6/2018 08:52

This has been a complete dog of a share for me........is anyone else loosing the faith here?

[7kiwi] 28/5/2018 14:25

Tonkiss used to work for a specialist student accommodation company. They put together a special unit to construct using modern pre-fabriaction techniques.

It didn't work, and lost money.

Probably best not to encourage him to do the same again.

[muffinhead] 24/5/2018 20:42

Average selling price is £298k (15% up in 12 months) according to HI results. Certainly not cheap and leveraged to low interest rates.

Question:
Why bother buying an over 55 abode, grow old quickly among age challenged neighbours and then for the local council to rob any equity to pay for nursing home fees at the rate of £1000 per week? Seems daft for a large proportion of buyers that will go on to need nursing care or residential support.

I think the business model is flawed imo

Company needs to diversify into "community living" to cover all age groups. For the over 55 demographic, the company could lease the property and expand into property management. For other demographics, there is student, city or travel accommodation which are huge potential markets and would require little effort from the company.

[speedsgh] 12/4/2018 10:55

McCarthy undervalued by investors, says Jefferies -

A review of ground rents has left investors wary of McCarthy & Stone (MCS) but Jefferies believe the retirement home developer is offering the potential for high growth for ‘many years’.

Analyst Anthony Codling retained his ‘buy’ recommendation and target price of 267p on the shares, which fell 3.7% to 132p yesterday.

‘McCarthy currently trades below current year 2018 net book value, whereas the broader UK housebuilding sector trades at more than a 50% premium,’ he said. ‘It seems to us that currently investors cannot see past McCarthy’s ground rent [review], but we see significant upside for the price of McCarthy’s shares once it leaves [this] behind.’

He added that the company was ‘the market-leading provider’ for homes for people aged 55-plus and ‘given the profile of the UK’s ageing population, we believe that the market for age-specific housing has the potential for high growth for many years’.

[speedsgh] 11/4/2018 11:04

Peel Hunt today reaffirms its buy investment rating on McCarthy Stone Plc (LON:MCS) and cut its price target to 170p (from 185p)

[gswredland] 11/4/2018 07:59

Not kidding!!

[crystball] 11/4/2018 07:55

Not much to get excited about here!

[eeza] 09/4/2018 18:30

The market is always worried about not having anything to worry about.

[asturius101] 09/4/2018 18:21

yes, looks that way

[gswredland] 09/4/2018 17:23

Market worried about results on Wednesday

[speedsgh] 29/3/2018 12:28

Illsley hails best opportunity in builders since 2008 -

JPM UK Equity Core fund manager James Illsley believes Brexit has handed investors their third big chance this century to invest in house builders.

House builders have been hit by a slowing housing market this year but Citywire A-rated Illsley believes there is still value in the sector which is fast falling out of favour.

He said there had been three opportunities to buy into house builders since 2000, with the first during the dotcom bubble. While everyone was buying tech companies ‘that had just been set up in someone’s garage’ Illsley bought housebuilders with ‘good land banks, good franchises, and good business models on less than book value’.

‘We were buying a company at less than the value of its land and buildings,’ he said. ‘We then know that housebuilders and lots of value stocks then outperformed until 2006/7.'

Instead of ‘realising that value was an outperforming strategy over the long haul’ and using the financial crisis to buy into housebuilders, investors still made excuses, said Illsley.

‘Post financial crisis, it got worse, you could buy house builders on a third of book value. We were buying Barratt Developments (BDEV) on about 0.3 times,’ he said.

Fast forward to today and Brexit has created another opportunity to buy house builders which are now ‘emotionally valued and out of favour’.

‘Investors find reasons not to buy an undervalued, depressed sector,’ he said. ‘Again, post-Brexit, Bellway (BWY) was one of the key stocks we bought at book value.’

However, he is only positive on the outlook for house builders that are supported by government initiatives, such as the Help to Buy scheme.

He noted that the UK housing market was still under-supplied, with just 200,000 houses a year being built out of the 250,000 needed but said it was a ‘two-speed market’.

'The new build market is supported by government action, like Help to Buy… the secondary market is not as strong as new build,' he said.

This means while new build company Bellway is a ‘buy’ for Illsley, McCarthy & Stone (MCS), which specialises in retirement homes, is not.

‘With McCarthy & Stone you have to sell your home to buy a retirement home,’ he said. ‘It relies on the secondary market to realise proceeds. The secondary market has been weak and slow.’

This means that McCarthy & Stone has had to offer greater incentives to potential buyers, such as part-exchanges on their homes.

[speedsgh] 06/3/2018 09:19

MCS share price is going nowhere until the uncertainty re their exemption or otherwise from the proposed changes to ground rents is removed. I am expecting 'otherwise'. The market wants clarity.

Continued "subdued conditions within the secondary market" doesn't help either. Not really much positive for the market to feed off in today's statement. Aimho.

[cwa1] 06/3/2018 07:57

Hmmmm. Those results don't look exciting IMHO.

[speedsgh] 23/2/2018 10:11

Some concerted buying by the board amounting to just over £91k, although not convinced it is enough to be seen as sending a major signal. But perhaps it is an indication that the board feel that the share price has now fallen far enough & is good value as a long term buy?

Director/PDMR Shareholding -

Recent share price action would suggest that markets believe that the company's hope that they might be exempt from the proposed changes to ground rents for the retirement housebuilding sector is a forlorn one.

Rowan Baker (CFO) bought 7,341 @ 135.2p = £9,925
Jacqueline Fenton (wife of CEO) bought 30,000 @ 135.2p = £40,560
Gary Day (Land & Planning Director) bought 20,000 @ 135.2p = £27,040
Lisa Tonkiss (spouse of COO) bought 10,000 @ 135.2p = £13,520

[its the oxman] 21/2/2018 14:26

Real shocker to see this at 132p. Sold out a good while ago but got to be value down here surely. Wait and watch the next newsflow, things can't really be this bad.

[gswredland] 20/2/2018 16:31

In free fall - chart looks awful

[gswredland] 20/2/2018 16:30

Thanks speed

[finkie] 20/2/2018 12:58

they have fallen too much something is afoot here unfortunately......

[crystball] 20/2/2018 11:20

Me too. Thankfully just a small stake for me. Annoying none the less. I won't be tempted to top up at these prices. Just a case of patiently waiting.

[finkie] 20/2/2018 10:56

Why the drop???? Ongoing ground rent uncertainty???? Big loser for me these boys at the moment :-(

[speedsgh] 19/2/2018 12:29

Interim Results due start of April