Persimmon Share Discussion Threads

[sporazene2] 25/2/2019 11:05

I would highly doubt that if indeed there were any issues with quality that PSN would be excluded from the scheme without being given the opportunity to remedy this breach of the quality standards expected.

Equally if they did have quality issues that threaten their participation in the scheme, this information would be considered material, given HTB underpins the medium term outlook for the business, so one could reasonably expect this to have been communicated to the market and shareholders. I believe there was an ops update as recently as January 15th. So if this information has come to light since then we can reasonably expect this to be communicated at the earliest opportunity. So it appears as though we either have a) a leak ahead of tomorrows 2018 final results or b) confirmation of a previous theory that this is an attempt to destabilise the price in the short term. All IMHO

[dr_smith] 25/2/2019 10:44

Thank-you Davius for detailing what I can't see.
There are a few inconsistencies.
If inference is PSN are not acting within rules of HTB, then legal remedy by gov is available now, no need to wait until 2021.

If statement says gov have to wait until 2021, then it implies PSN are operating within current rules and gov won't have opportunity to modify those rules until 2021.

Gov want to encorage first timers, they will want to continue to assist first timers in some sort of vehicle, but whther that is HTB in its current but modified form or something different, I have no idea, though personally felt HTB wasn't a good vehicle in first place.

If quality is sub-standard, again, there are procedures for remedy.

Quality and HTB are 2 separate issues, no connection, and cannot see gov saying you are outside scheme as your quality is below par.

Sogoesit: It seems we share opinion on gov. They pretend to have policy on building low cost housing and have target to build x homes p.a., but to my knowledge they haven't built 1 house.
There is also the other old chestnut I have waffled about before. Gov want more houses built, but if builder ramp up supply, that leads to unstable boom and bust cycle and laying off thousands once supply is deemed to have caught up with shortfall - and BOE interest rates deliberately try to avoid this scenario, so at odds with gov target.
If gov want more houses built, they can take risk with their money.

It's only Monday, I'll calm down now. ;-)

All IMO.
Dave

[sogoesit] 25/2/2019 09:38

Thanks Davius; appreciate it.
Did not realise the "profiteering" accusation was aimed at the HTB suppliers.

[davius] 25/2/2019 09:31

The issue is that first time buyers basically have HTB or nothing, so the big builders hike HTB prices by a few percent. HTB is responsible for a big slice of PSN profits, hence the accusations of profiteering. The current HTB scheme runs until April 2021 so PSN (and others) have time to adjust if necessary, to be approved for anything that goes beyond that date.

[sogoesit] 25/2/2019 08:53

If the state is so good at building affordable ("cheap") housing why doesn't it do so?
Surely, the less HTB PSN do the better for profitability?

[unastubbs] 25/2/2019 08:35

"excessive staff rewards?" come, come...that can't be right.

[ygor705] 25/2/2019 08:18

The Government are reported to be conducting a review of Persimmon after complaints about shoddy working practices, leasehold property scams, excessive staff rewards and blatant profiteering. The penalty could be non-inclusion in the 'help to buy scheme' after 2021. I have lightened my holding this morning as I'm not keen on the idea of 'death by a thousand cuts' scenarios. Plenty of other decent builders to look at!

[micos] 25/2/2019 08:12

Davius, thanks for that.

[eggbaconandbubble] 25/2/2019 08:10

This is most likely scaremongering so that the traders can get in at a good price and volume before the results.

[tallprawn] 25/2/2019 08:05

Read the news... Potential loss of HTB scheme.

[micos] 25/2/2019 08:02

WTF today?

[davius] 08/2/2019 10:47

Yes, final results for 2018 due on 26th of this month. If they do the same as last year there will be a 125p dividend, with ex-div date in early March, and another 110p with ex-div in June. They previous stated the intention of returning another 235p to shareholders this year, I believe. Yield just below 10% at current share price

[aaspell] 08/2/2019 10:15

April quarterly update following Final Year accounts in March?

[cupra kid] 08/2/2019 10:06

When is the next update due?

[flyinggogo] 31/1/2019 12:01

Brexit could now be delayed, would have thought that would push housebuilders much higher?

[dr_smith] 21/1/2019 11:18

Thank-you Sogoesit, linked OK without registering.
I like his music choice, but I wouldn't like to be driven by this guy, he is constantly looking in the rear view mirror. Even the outlook references are historic co quotes. It is the outlook now that is important. Not clear why article was written other than reminiscing Mr Dury.

[sogoesit] 21/1/2019 10:07

Some research info.
Free if you register.... but link below gets you the report anyway as far as I can see.
Regards

[redchef] 21/1/2019 08:19

A minor retrace perhaps today to for the cup and handle and then test 2400 again

[cupra kid] 18/1/2019 13:27

It tickled with it Red Chef

[redchef] 18/1/2019 10:39

If this breaks 2400 as I'm hoping it should be up up and away

[mister md] 16/1/2019 13:35

nice bounce back today