Redrow Share Discussion Threads

[what is a login ?] 04/11/2009 07:44

Better than expected statement this morning
"Home sales in the financial year to date have been remarkably stable with net private reservations averaging 45 homes per week, including the normally
seasonally weaker months of July and August. Total net private reservations
achieved in the first 18 weeks are 47% ahead of the same period last year with
cancellation rates having returned to historic norms."
Perhaps we're at the bottom now.

[dilly4] 02/11/2009 17:01

be interesting to see how much the share price falls tommorow & for the following days

[lyntwyn] 30/10/2009 16:25

someone is showing a lot of interest in Redrow today by the looks of it!!

[dilly4] 28/10/2009 15:22

no one seems interested in redrow - just the usual suspects bdev & tw.someone out there keep the red flag flying!!!!!!

[dilly4] 27/10/2009 14:51

this is a mirror of bdev

[typo56] 21/10/2009 07:31

0606 GMT [Dow Jones] Citigroup upgrades Redrow (RDW.LN) to hold from sell. Says the new rating reflects the company's better balance sheet position. Says with about 148 million new shares at 105p being issued, the group's balance sheet will be "transformed," with net debt dropping to approximately GBP50M. Says more work needs to be done in terms of getting the business back into shape from a margin and return on invested capital perspective, "but at least the business is pointing in the right direction," the brokerage says. Thinks the stock's valuation looks appropriate. Keeps 156p price target. Shares closed Tuesday at 147.8p.

[hamsterape] 20/10/2009 08:50

I'm more comfortable shorting Barratt - this low free-float
leaves you much more at risk of a short squeeze.

[honest crust] 20/10/2009 08:25

Shorters are on rampage then!!!

[hamsterape] 20/10/2009 01:02

(13 x 105p + 14 x 207p) / 27 gives a TERP of 158p approx.

There seems to be a free-float of only about 20% though so
trading either side of this price could be treacherous.

[what is a login ?] 19/10/2009 15:45

Things are moving apace. RI apporved at this mornings EGM.


19 October 2009
REDROW PLC
Results of General Meeting and despatch of Provisional Allotment Letters
Following the General Meeting held today, Redrow announces that the Resolutions
set out below relating to the proposed Rights Issue and the Harrow Estates
Transaction announced on 23 September 2009 were duly passed without amendment.
Under the terms of the Rights Issue, Redrow intends to raise net proceeds of
approximately GBP150 million (net of expenses) by way of a Rights Issue of
148,584,705 New Shares on the basis of 13 New Shares for every 14 Existing
Shares. Redrow also intends to acquire freehold land assets and options to
acquire further strategic land assets, together with the employees of Harrow
Estates and the "Harrow Estates" name, for a total consideration of GBP15
million.
Provisional Allotment Letters will be posted to Qualifying Non-CREST
Shareholders on today, save as stated in the Prospectus. It is expected that the
Nil Paid Rights will be enabled for settlement in CREST by 8.00 a.m. on 20
October 2009. It is expected that Admission to the Official List will become
effective and that dealings in the New Shares will commence on the London Stock
Exchange, nil paid, at 8.00 a.m. 20 October 2009. The latest time and date for
acceptance and payment in full is 11.00 a.m. on 3 November 2009. Given the
proposed industrial action within Royal Mail, shareholders are urged to respond
promptly on receipt of the Provisional Allotment Letters.

[what is a login ?] 19/10/2009 11:39

I wondered whether the share price would visit 200p before the rights issue but that doesn't seem to be the case.

[what is a login ?] 18/10/2009 19:24

Here's a comment from Robert Cole of The Times 26th Sept. He seems gung ho about the RI (SP below 210p and still, for now, descending):

"In real life, Redrow, the housebuilder, is issuing 13 new shares for every 14 in existence. The new shares are priced at 105p, while the old market price was 233.5p. The Terp, therefore, is 13 x 105p (or £13.65) plus 14 x 233.5p (£32.69), divided by 27 (the sum of 13 and 14). Answer? 171p. And that is the figure to rest judgments about the wisdom, or otherwise, of investing.

My analysis of the four cash calls launched on Wednesday? Redrow, Barratt and Liberty look basically sound. Yell is much more of a head-scratcher."

[what is a login ?] 17/10/2009 07:36

This comment from the FT that dates back to 11th September but is still relevant. Steve Morgan has quite a wall to climb.
My thought is that anyone who bought certain builders in 1993 and held eventually had multi-baggers.

"Contrition comes easily when your predecessors can be blamed and Steve Morgan must be hoping that yesterday's results represent a nadir for the company he founded. The consensus among analysts is that if anyone can turn round Redrow, he can, but the scale of the struggle should not be underestimated. Most housebuilders have been tripped up by outsized financing costs and by land writedowns, but Redrow is barely making money on the most generous metrics: subtracting the cost of site labour, materials and land alone from the group's turnover leaves only £5.4m. The land writedown - which is promised to be the last - knocks 20 per cent off the value of Redrow's net assets, meaning the shares are now trading at a 24 per cent premium to book value. That is close to the rating enjoyed by a solid housebuilder in a solid housing market - and well above the current sector average of about 1 times book value. Mr Morgan may be the man to save Redrow, but that valuation looks rich for the moment."

[hamsterape] 16/10/2009 18:57

The ex-rights date is NOT the 15th - I think I've said before about
people posting confusing and/or incorrect information,
although I'm sure they have good intentions.

Ex-rights means that buyers on that day onwards are not entitled.
Buyers before ARE entitled even if not yet on the register.

Buyers registererd prior to the record date are entitled and receive
all the correspondence. Buyers not registered by the record date are
also entitled up until they go ex-rights but the rights may have to
be reclaimed by the broker from the people who were on the register
before the record date but then sold before they went ex-rights.

It may or may not be possible to request that your broker trades them
cum- or ex-rights but then you would be quoted two completely different
prices so it would be obvious which was which.

However, I do agree that it's worth confirming with brokers and
particularly with CFD providers that they have indeed remembered that
there should be rights attached.

[mryesyes] 16/10/2009 18:45

£1.50 is a bit conservative. Although you lose half (13/14ths) your % of redrow
it is now a company with a lot more cash......
Whoever underwrote BDEV???

[mryesyes] 16/10/2009 18:43

Its the same as going ex dividend. The registrars set a date of 15th. Therafter they begin the process of drawing up a list of the identities of holders on that date, prior to the sending out of allotment letters.
It is getting ever more complicated where holders are not just certificated or crest but nominee, day traders and week traders etc
A lot of shares are "in transitu" as of 16.30 on the 15th owing to the types timing and overseas nature of holdings, offshore etc
From what yoy say I can tell that 20th is the date on which all rights can be determined with 99% plus accuracy, that is why allotment letters always warn you if you have sold or otherwise disposed etc
They need the 5 days to settle things, otherswise MM's are left with ex right stock etc etc. On the 20th they will be able to decide definitively who had what on the 15th

[hamsterape] 16/10/2009 16:01

The rights will trade on the LSE, yes, but you may have difficulty
selling them until they are actually booked to your account.

[what is a login ?] 16/10/2009 16:00

THE EX-RIGHTS DATE IS 20TH OCT (not Monday as some on here seem to think.)
Thanks for that HamsterApe.

[rkjones] 16/10/2009 15:19

Is there a market for their nil-paid rights? Presumably the share price will drop to about the £1.50 mark on the 20th.

[hamsterape] 16/10/2009 12:20

The balloon season is over anyway - the last Redrow promo was mid-September.

I rang one of their brokers to check the ex-rights date as it's nowhere
in the RNS and their website doesn't even mention the rights issue under
either key dates or company news - useless.

The broker hasn't bothered to call back either.

BDEV goes ex-rights on Tues morning. At least that date is in THEIR RNS.

I wrote to RDW's PR company suggesting that next time they want to do
a rights issue they should put the following at the top - the ex-rights
date, the number of shares per existing and the price. All the rest is
extra detail that can be perused later. I wish RNS required it this way
themselves.


Edit: I seem to have found the document on the website now, by another route
(or else it wasn't there previously).



THE EX-RIGHTS DATE IS 20TH OCT (not Monday as some on here seem to think.)

[what is a login ?] 16/10/2009 10:07

I phoned the number and received a prompt friendly reply before being put through to the legal department and then back to reception. No information on RI. They did offer to call me back. I forgot to ask about the balloon. I suppose Selftrade will send an e-mail in a few days time.

[what is a login ?] 16/10/2009 09:46

I was looking for information on the RI on the company website:

"Find out when Redrow's hot air balloon is at an event near you"

The houses they have built look homely and comfortable but I'm not very interested in the big red Redrow montgolfier. LOL

The number for enquiries (about the RI and also, I suppose, about the ballon) is Steve Morgan 01244 530044.