Persimmon Share Discussion Threads

[cupra kid] 28/5/2024 10:56:41

Cala Homes have been in decline for a while and not the greatest of builders in my experience at least. If the purchase goes through then it will be predominantly for land bank, just like Barretts purchase of Redrow.

[sikhthetech] 27/5/2024 23:17:24

Cala homes sale price is reported to be around £1bln.

Compare the financials with other HBs, like PSN/TW.

That tells you everything you need to know about the uncertain housing market and current valuations being achieved by HBs.

CALA - fy2023

Revenue : £1.255bln
PBT: £112m
Units sold: 2917
OM 10.9%
Contracted landbank: £8.8bln

And it's being sold for around £1bln..





TW:
Revenue: £3.5bln
PBT: £473m
OM: 13.4%

Current Mcap: £5.2bln


PSN:
Revenue: £2.77bln
PBT: £351m
OM: 14%

Current Mcap: £4.7bln



I'd say PSN/TW are hyped.

Best to trade hyped sectors.

[eeza] 25/5/2024 10:34:33

hxxps://news.sky.com/story/ftse-100-housebuilder-persimmon-weighs-1bn-bid-for-rival-cala-13142797

[beckers2008] 20/5/2024 15:55:44

Sikhthetech,

I told you...

BoE base rate 6%?
Absolutely no chance.

When is your house price crash prediction gonna come true, you've been wrong every year for 6 years, lol, just lol!

Your not credible.

[time 2 retire] 20/5/2024 15:32:09

I've been waiting for Sikhs negative post after all the positives!
Give it up and close your short before it's too late!

[sikhthetech] 20/5/2024 14:25:34

"Nonetheless, the market remains price-sensitive with average asking prices just 0.6% higher than a year ago. Larger properties led the price growth"


Says it all.

Average up only 0.6%, tiny amount, led by larger properties.
What about the average properties? Or the smaller properties, flats etc?. They would be below average and therefore prices falling.

0.6% means in real terms property prices are still falling.

The housing market future is still very uncertain.

[adamb1978] 20/5/2024 11:57:13

Yes, the pent-up demand point above I think is completely right and been thinking the same recently. I could see house prices up 20%-30% over the next couple years as interest rates come off and people who had been wanting to move now make the decision to do so.

[davius] 20/5/2024 09:39:04

House prices hit a new record in May, with the number of sales up 17% on-year, as the momentum of the Spring selling season continued. Rightmove's house price index showed the average price of property coming to the market for sale rose 0.8% in May to GBP375,131. The online property portal said pent-up demand from would-be buyers who paused their plans last year is a key driver behind increased home-mover activity despite mortgage rates remaining elevated for longer than anticipated. The number of sales being agreed during the first four months of the year is 17% higher than last year, outstripping the 12% increase in the number of new sellers coming to market. Nonetheless, the market remains price-sensitive with average asking prices just 0.6% higher than a year ago. Larger properties led the price growth, with average prices up by 1.3% compared with last year. Despite the uptick in prices, sales were taking an average of 154 days to complete, which Rightmove described as "painful". Rightmove's Director of Property Science Tim Bannister said despite the latest increase "it's important to remember that prices overall are still only 0.6% ahead of this time last year".

[adamb1978] 20/5/2024 09:10:19

Onehanded - personally I'm not too bothered about short term prices. Looking longer-term, if you look where this had got to (market cap, revenues, earnings etc) in previous cycles and then consider that those metrics are nominal numbers but how much inflation will have taken up house-buyers incomes etc from the last peak to the next one, there is considerable upside here looking further out. Where that's 200% upside, 250%, 300% I dont know but I certainly won't be selling for a while!

Agreed though on the short term than low inflation should bring rates down and spur prices and this sector

[onehanded] 20/5/2024 08:08:26

2% inflation coming and this is going to rocket. At first had £18 target but now really think £22 can be reached by end of year. Can see big institutional interest. Maybe even some consolidation in the sector. The tides are turning….

[kreature] 16/5/2024 18:57:55

Indicates that it’s up 50% since nov23. It’s not so difficult to understand.

[kennewil] 15/5/2024 22:18:40

Share price up 50% since nov23. Indicates what?

[kreature] 15/5/2024 21:16:18

SP 50% down since June 2021 should be a leading indicator of something ?

[sdt7618] 15/5/2024 18:08:49

Seems to be moving in the opposite direction from the resident expert...... how can that be?

[onehanded] 15/5/2024 17:57:18

£18 first stop, then £22 by end of year.

[pinemartin9] 15/5/2024 17:33:51

Moving now. This could hit 2000 in a few months.

[sikhthetech] 14/5/2024 11:50:58

Wage growth remaining strong reduces the chances of interest rate cut next month.

FTBs taking longer term mortgages shows how overpriced the housing market is.


Rise of 40-Year Loans Indicates a Flawed Housing Market
Hard-pushed first-time buyers have replaced interest-only loans with ultra-long mortgages.




Btw, I see TLY, the healthcare provider, has doubled since last month. No wonder Becky has gone quiet on that one. She can't get anything right!

[kreature] 14/5/2024 10:43:41

Unemployment up
And wages up

What a disaster

[beckers2008] 14/5/2024 10:23:10

Kreature or should I say Joseph Sheedy, lol!

How's your short from the 10th November, lol, just lol!

[kreature] 14/5/2024 10:16:22

Whoops……..absolutely no way they will cut rates at next BOE party, imo

UK wage growth still high despite unemployment rise

[kreature] 12/5/2024 19:57:11

Nope, I’m talking about fact. The new build so called freeholds are limited and NOT free from hold or encumbrances imo. Buyers should read the TP1 documents like their life depends on it. For some reason the majority of lawyers are not properly informing buyers of the defeasible nature of the so called freehold imo