Mj Gleeson Share Discussion Threads

[ali47fish] 15/2/2016 14:59

so it is further down when the other housebuilders are up? have you topped up lex?

[lex ixtle] 13/2/2016 18:26

Fair point but are enough of the invested in Gleeson to knock the price that significantly? On balance I think I will top up if the price stays at this level on Monday.

[rogerbridge] 13/2/2016 15:41

Sometimes funds have to dump their better shares to pay for redemptions.

[pastybap] 12/2/2016 20:25

This one had escaped most of the damage over the past few weeks. Perhaps playing a little bit of "catchup".

[adorling] 12/2/2016 16:29

I bought back in at 542.44p for 2500 shares after selling out at 610p a week ago. Some good chart gaps to fill on the way back up.

[lex ixtle] 12/2/2016 13:38

Aren't half year results due to be released next week? Hope there is nothing sinister and that this is a buying opportunity.

[thenewtradesman] 12/2/2016 10:26

nothing in the IC so im assuming short term profit takers as it was tipped 4 weeks ago???

[ali47fish] 12/2/2016 10:15

any reason why this one is falling?

[starfishprime] 20/1/2016 21:01

Yes quite, or a monkey in a hang glider.

[lex ixtle] 20/1/2016 20:56

Or better than many other shares in the current bear market!

[starfishprime] 20/1/2016 20:32

The share price is holding up better than a whale in Japanese territorial waters.

[lex ixtle] 20/1/2016 14:29

Hmm! Almost at the CEO incentive target price of £6. I don't know what the qualifying date is however. The business model should be good to sustain further growth.

[thenewtradesman] 20/1/2016 13:31

wish pdl and pet graphs looked like this!!

[par555] 20/1/2016 12:53

Share price showing great resilience today, unchanged with ftse down 3% and most house builders down 2-3%.

[firtashia] 15/1/2016 21:32

I hope I haven't jinxed it, Starfishprime :-)

[starfishprime] 15/1/2016 20:19

what are mockers?

[firtashia] 15/1/2016 12:16

One of the other things that attracted me to invest in this company was the relative lack of share price volatility around black monday in august. This seems to be playing out again given the recent market shenanigans last month & this month. Hope I've not put the mockers on it.

[the juggler] 09/1/2016 22:40

I am only slow off the mark as returned late last night from hols - making my entry point a little more expensive, but hey as long as they keep increasing I will be happy.

[treeshake] 09/1/2016 22:35

Exactly the reason it came off my watchlist last week and went onto the owned list !

[the juggler] 09/1/2016 22:32

I quite agree firtashia. I am looking for a new investment as I am solely invested in PAYS currently but have some spare cash looking for a rewarding home.

[firtashia] 09/1/2016 22:27

Firtashia stock screen: +ve earnings upgrade cycle, +ve share price momentum, less than 15 comments about the stock on its thread on this BB over the last 3 months. This one fits the bill :-)

[market sniper3] 08/1/2016 10:45

IC tip of the YEAR.

[thenewtradesman] 08/1/2016 10:23

Also tipped back in spetember

MJ Gleeson full of growth potential
MJ Gleeson full of growth potential
share tips and updates MJ Gleeson Group PLC (GLE)

Bull points

Builds houses at prices that really are affordable
Net cash position
Potential for geographic expansion
Earnings upgrade record
Bear points

Modest dividend
Land sales can be lumpy
UK housebuilders have all performed strongly in the past couple of years, and there is every indication that this trend will continue through 2016. MJ Gleeson (GLE) is one of the smaller of the listed housebuilders, but its business model sets it apart and should offer investors something special in 2016.

We've made MJ Gleeson our 2016 Growth Tip of the Year due to highly favourable economic and political conditions in its end market, and the potential to boost growth further with a strategic move into new regions. These factors should help extend the company's excellent track record of beating analysts' earnings forecasts (see chart).

The group operates two businesses: selling affordable houses in the north of England and pulling land through the planning process and selling it to hungry housebuilders in the south. Given the recent raft of government initiatives to make houses more easily affordable, Gleeson is already ahead of the game. With average selling prices in the year to June 2015 of £123,750, Gleeson's houses really live up to the 'affordable' billing. And concentrating on this type of home has also kept Gleeson out of the buy-to-let market, which is expected to be negatively affected by recent government policy changes.


Gleeson's houses may not cost the earth, but they are nevertheless good quality. Some of the areas being redeveloped will have social issues, but putting residents in charge of their own homes brings rapid positive changes. And because many of the brownfield sites that it regenerates are not in demand for any other use, prices are low. Land acquisition costs have remained steady for the past three years at just £8,500 per plot. Cost inflation has also been kept to a minimum with a rapid payment scheme, whereby subcontractors are paid in relation to the quality of their services and workmanship. For example, grade A subcontractors are paid within 14 days of invoices, while grade D subcontractors are invited in for a chat.

MJ GLEESON (GLE)
ORD PRICE: 540p MARKET VALUE: £292m
TOUCH: 538-542p 12M HIGH: 550p LOW: 347p
FORWARD DIVIDEND YIELD: 2.7% FORWARD PE RATIO: 12
NET ASSET VALUE: 254p NET CASH: £15.8m
YEAR TO 30 JUN TURNOVER (£M) PRE-TAX PROFIT (£M)* EARNINGS PER SHARE (P)* DIVIDEND PER SHARE (P)
2013 61 4.8 9.0 2.5
2014 81 11.4 15.8 6.0
2015 118 23.4 34.3 10.0
2016* 131 27.4 40.6 13.5
2017* 143 30.0 44.4 14.8
% change +9 +9 +9 +10
Normal market size: 750

Matched bargain trading

Beta: 0.04

*N+1 Singer forecasts, adjusted PTP and EPS
A combination of cheap land prices and acceptable build costs means that gross profit per plot last year was up 5.5 per cent at £36,700. Home sales in the year to June rose by a third to 751, with a medium-term target of 1,000 a year. Meanwhile, sales outlets grew from 33 to 39, a number that is expected to reach 50 by June 2016. To meet this expansion Gleeson has been steadily growing its land bank, which now stands at 7,717 plots. It is now considering extending its business model outside its existing patch. No firm decisions have been taken, but a staged expansion into adjacent regions could treble Gleeson's addressable market, according to analysts at N+1 Singer.


Gleeson's housebuilding activities in the north of England are supplemented by its land management business in the south. Turnover from strategic land sales doubled in the year to June, and the division has performed well ahead of expectations since then, selling two sites with planning consent for 405 residential homes and a further site of 112,700 sq metres for commercial use. Currently, the development land pipeline comprises 68 sites totalling 3,905 acres, with the potential to deliver around 21,250 homes. Of these, eight have planning consent, and six are being processed for sale in the current financial year. Prospects for further sales look promising, although, by the very nature of the planning process, sales revenue can be a little lumpy.

IC VIEW:

We think Gleeson's business focus, coupled with a strong management team, a robust balance sheet and highly favourable market conditions means it should be able to maintain its excellent record of earnings forecast upgrades in 2016. This should add fuel to the share price. Geographic expansion should boost growth potential and any news on this should be good for the share price. Buy.

[edale] 08/1/2016 09:28

Looks like this was recommended in IC today but I don't have access to the article.

[nwalsham15] 06/1/2016 11:45

slow n steady - my kinda share!!