Taylor Wimpey Share Discussion Threads

[imastu pidgitaswell] 30/6/2020 08:18

Fine my me - added another tranche just now.

[jonwig] 30/6/2020 08:12

Downbeat statement from Redrow this morning.

FT: Housebuilder Redrow said it will scale back its operations in London to focus on its regional businesses and “heritage̶1; homes. The move is a response to changing priorities for homeowners after the pandemic, Redrow said, with more inside and outside space, proximity to green spaces and better home workspaces becoming higher priorities. Redrow also called on the government to extend the Help to Buy scheme, which is due to be phased out next March, to ensure a “sustainable” recovery.

[imastu pidgitaswell] 28/6/2020 19:04

Note the RNS from BKG late(ish) on Friday re Tony Pidgely. He was a rare talent in the industry, in fact unique - far more deserving of the financial rewards than recent CEOs in the industry who have ridden the Government Help-to-Buy Scheme through their share options.

[sikhthetech] 28/6/2020 16:17

pumping billions into construction and infrastructure is the right thing to do. It provides jobs and income for the govn.

It is a better alternative to paying furlough for too long, which allows people to sit on beaches, spreading the virus, whilst getting paid to do so.

[gbh2] 28/6/2020 15:26

Boris promising to throw Billions into Building and Infrastructure after Brexit, much bound to fall in the Housing sector :))

[sikhthetech] 28/6/2020 14:15

Jonwig,

"How was the corporate outlook back then? Murky?"

The corporate outlook is still murky - that's the point.

With the economy, there's still the likelihood of millions losing their jobs after govn support is withdrawn, mortgage payment hols are withdrawn.


Have they paid back the £550m that they withdrew from the credit facility? I haven't seen any comment suggesting that they have.
Therefore, I think the company's view on conserving cash, until the disruption is better understood, still stands.



The company themselves stated:

“Until the extent and duration of the disruption is better understood, the board believes conserving cash is in the best interests of the long term sustainability of the business.”"

[zac0_4] 27/6/2020 12:34

jonwig - the Terry Smith approach has worked for me! I have a wide range of dividend paying shares, including TW, and I'm also invested directly with Fundsmith in their equity fund. I've set up an automatic quarterly drawdown payment with them, just like a dividend payment. None of my directly held shares get anywhere near close to the total return I've seen from their fund.

[zac0_4] 27/6/2020 12:34

jonwig - the Terry Smith approach has worked for me! I have a wide range of dividend paying shares, including TW, and I'm also invested directly with Fundsmith in their equity fund. I've set up an automatic quarterly drawdown payment with them, just like a dividend payment. None of my directly held shares get anywhere near close to the total return I've seen from their fund.

[gbh2] 26/6/2020 17:17

Heavey losers syndrome, they simply cannot move on :)

[jonwig] 26/6/2020 16:56

Dated March. Everything has its price, we’ve moved to the next stage.
PS. How was the corporate outlook back then? Murky?

[sikhthetech] 26/6/2020 15:09

Jonwig,

What do you think about Sharetalk suggesting that they are UNDERPINNED by £500m cash...

Not an agenda to construe all news as good news, is it???

£550m credit drawdown to pay back, £100m++ redress for leasehold scandal...


The company themselves stated:

“Until the extent and duration of the disruption is better understood, the board believes conserving cash is in the best interests of the long term sustainability of the business.”"

[jonwig] 26/6/2020 15:03

The point is that some commenters will try to construe all news as bad news if they have that agenda.

Personally I'm usually indifferent as to whether the company keeps the cash or pays me a dividend. I can always sell some shares. (That's the Terry Smith idea.) Given the current uncertainty, some may take the view that it's prudent management.

[imastu pidgitaswell] 26/6/2020 14:47

And? Your point is? Recycling public stuff from over a week ago - so what does it mean?

One interpretation might be that they have over £1.5 bn (saved divi, draw-down, placement) more cash then if they had done nothing. Sounds pretty good to me, no?

[sikhthetech] 26/6/2020 14:42

sharetalk

"underpinned by £500m cash"

They saved around £500m by not paying the dividends.

They also had drawn down £550m of their revolving credit facility.





Coronavirus: Taylor Wimpey cancels dividend and draws down £550m


"It has drawn down its previously unutilised revolving credit facility of £550m, resulting in a gross cash position of £807m and net cash of £165m as at 23 March 2020. It has also stopped all discretionary land spending.

The board has taken the decision to cancel the 2020 final dividend of 3.8p per share (c. £125m) that was due to be paid in May and the planned special dividend payment of 10.99p per share (c.£360m) that was due to be paid in July.

“Until the extent and duration of the disruption is better understood, the board believes conserving cash is in the best interests of the long term sustainability of the business.”"

[sharetalk] 26/6/2020 08:19

Investors rightly now view TW as a good recovery play, underpinned by £500m cash, a national demand for more houses and low interest rates.

Won't take much to push TW back above 220p this summer.

P.S.
Nine TW directors bought shares in the 145p placing earlier this month.

[craftyale] 26/6/2020 07:53

I guess starting a third thread is out of the question :)

[spurslegend1] 25/6/2020 21:16

#HSBC housebuilders VALUATION Everything’s a “buy”: #SIG #BKG #TW. #PSN #BWY #CRST #MCS #RDW #VTY

[gbh2] 25/6/2020 16:35

sharetalk - Agree, but there will always be disgruntled losers :))

[sikhthetech] 25/6/2020 15:45

sharetalk

"Covid was widely known about and affecting the market well before lockdown began."

Exactly, that's the point..
It wasn't just the lockdown which affected HBs but there was a slowdown prior to it.

[sharetalk] 25/6/2020 15:19

Covid was widely known about and affecting the market well before lockdown began.

Investors rightly now view the housebuilding sector as a good recovery play and TW are in a very good position, underpinned by £500m cash, a national demand for more houses and low interest rates.

Won't take much to push TW back above 220p this summer.

P.S.
Nine TW directors bought shares in the 145p placing earlier this month.

[sikhthetech] 25/6/2020 15:16

clarky

crest:
"20% drop on half year affected by the worldwide pandemic was massively overdone"


They were in Lockdown for only 5 weeks before H1 end, end of April.

Revenues and gross profit down 50% because of a 5 week lockdown - really!!!

Suggests that HBs were already facing a slowdown before Covid19 lockdown.



Crest Nicholson’s revenue halves in the first half of 2020

[gbh2] 25/6/2020 15:08

Because they were down 10% yesterday :)

[sharetalk] 25/6/2020 15:07

Housebuilder CRST are up 4.3%.