Persimmon Share Discussion Threads

[jonwig] 12/4/2013 07:24

The question of "intermediate" dividends has already been discussed here.

Citywire has a comment, with an intriguing possibility:

George Osborne's Budget will stoke house-price inflation, according to Peel Hunt analyst Robin Hardy, leading to higher earnings and earlier dividends from Persimmon (PSN.L), which he has upgraded from 'hold' to 'buy'.

'Policy switched in the Budget from any attempt to create a larger and better functioning housing market to instead a pure focus on generating inflation, thereby creating goodwill amongst homeowners and, the government hopes, doing enough to win the 2015 election,' Hardy said.

Although he questioned the logic of pushing up house prices in a no-growth and zero interest rate economic environment, throwing £130 billion of mortgage support at the housing market (a sum equal to 11 months' of additional mortgage advances) is bound to have an impact.

'For Persimmon, we believe this will allow the 620p of special dividends to be paid three years early,' he added. 'This boosts the income element in our valuation and, combined with higher EPS (+42% for 2015E), drives a materially higher fair value. We are raising our target price from 873p to 1,197p and return the stock to buy.'

Shares in the group closed at £11.03 on Thursday, up 40p or 3.8%.

[cockneyrebel] 11/4/2013 16:04

Nice new high again today :-)

PSN, TW. and BDEV are the builders to be long on imo - TW. just about to break the recent high too and join BDEV and PSN :-)

CR

[kito691] 11/4/2013 11:44

Very nicely put lol

[festering pustule] 11/4/2013 11:43

Yes, it may be pregnant with the divi, but may not lose any weight at birth if the IMS is sufficiently +ve.

[warrensearle] 11/4/2013 11:38

Interim Statement to come before the Ex Date as well (18th)

[kito691] 11/4/2013 11:19

Yes that as I explained earlier is my concern the lack of divi for 2014 will possibly allow the share price to drift lower then get bought into the run up assuming the fundamentals are still strongI have a sell order at £12.00 and fully expect it to be hit before ex date

[warrensearle] 11/4/2013 11:08

They have laid out their capital return plan for the next few years and I can't see them changing it - personally I will probably sell and rotate into another housebuilder like Barratt who are restarting divi payments this year

[charlotteandcressida] 11/4/2013 10:50

The only fly in the ointment for me is the dividend sabbatical in 2014 with the next large dividend payout scheduled for 2015. Dividend hunters will be very aware of this and may park their money elsewhere in the interim. I am hopeful that strong capital growth will underpin the share price in the meantime but it would be useful if the company proposed a small interim dividend for 2014 (results permitting) to keep things simmering...anyone any contact with the company in this regard or knowledge of such a situation?

[kito691] 11/4/2013 10:09

Thanks all I have held since 3.90 so delighted with the current price may it continue its march northGood luck all

[malcolmmm] 11/4/2013 10:00

perhaps at the moment it's not easy to buy these in any quantity because of the div which maybe driving the share price higher

[festering pustule] 11/4/2013 09:55

The new HSBC overweight note, targeting £13, seems to be doing no harm. PIs/discretionary portfolio buying (judging by trade sizes) v. insties happy to hold. Very encouraging.

[malcolmmm] 11/4/2013 09:53

My feeling also is that the share price will drop away on the 22nd to reflect the div payout as most sp's do, but not by 75p, then will slowly recover over the next few weeks, institutions , hedge funds etc may buy to catch the div then perhaps hold or sell

[gorse] 11/4/2013 09:33

Looking back, I see that I bought this at 584p on 14/5/2012 .... pity I didn't buy twice as many, or more. Certainly beats Birmingham residential property as an investment.

[kito691] 11/4/2013 09:19

Wow what a great morning so farMy dilemma after divi is paid is this share going to drift downwards as I read it there is so divi planned for 2014 !! Then to get pumped up again for the divi in 2015 Is it best to sell next week or do we all see this continuing to increase after this first initial 75p diviAny advice or views most welcome

[barlick] 10/4/2013 17:05

Many thanks everybody. Seems the 19th is it. Ex-div on Monday 22 April.

Ta

[warrensearle] 09/4/2013 21:22

If you want the dividend hold until at least the open on 22nd
If you don't sell before close on the 19th

[warrensearle] 09/4/2013 21:15

Dates clearly listed on PSN website

[broncowarrior] 09/4/2013 18:14

Barlick

Barlick see the "details" section of this.



If you want the div you should be holding on record date. If you want to sell price will start dropping from record to ex.

[barlick] 09/4/2013 18:03

Still trying to get my head around the ex-dividend date. My broker reckons the 22nd April(Monday) which means if you want to sell the day before that would be Friday 19 April!?

Also the 'record' date is 16 April - whatever that means?

Any ideas?

[jonwig] 09/4/2013 13:46

johnv, see posts #971 - #974.

[johnv] 09/4/2013 13:15

Can Someone explain in plain english the difference between b & c shares. I assume in both cases we get 75p divi but what happens to the b shares?

[charlotteandcressida] 05/4/2013 14:35

Selling overdone IMO, prospects are very good growth wise plus a very healthy upcoming dividend. If this dips below £10 I will be adding...

[barlick] 04/4/2013 17:25

Construction data not great so sector took a hit. Suspect PSN will become immune to sentiment soon as the divi grabbers move in - hope so anyway!!

Credit Suisse reckons above £13 so not all bad?

Thanks jonwig.

GLA

[charlotteandcressida] 04/4/2013 13:59

quite a big drop, surprising as 2 weeks before the .75p dividend, will add if weakens further...

[malcolmmm] 04/4/2013 10:11

was issued a few shares in Persimmon when they they took over Beazer in 2001,had forgotten about them until I received the 75p per share offer, dug out the certificates so welcome bonus, only own 150 shares but still nice though.
I suppose the share price may drop after payout on 22nd April if I remember correctly.