Taylor Wimpey Share Discussion Threads

[londonfinancial] 23/4/2010 19:35

Bob , house prices in the states are dirt cheap .Febuary also was the coldest month for 50 YEARS of course nobody bought houses.

[bobsidian] 23/4/2010 19:32

Yes. But only the foolhardy would believe the current rise in house prices to be sustainable.

The Halifax House Price Index report for February 2010 made an interesting observation. The average house price fell during that month primarily because more residential properties were made available for sale.

[londonfinancial] 23/4/2010 19:30

Bobsidian , yes property is wonderful values in many places the US for example has never been so cheap , the UK with the weak pound is also a wonderful place to invest . The BRIC countries apart from Russia also are very reasonable .

I like to buy at the bottom not the top .

[smurfy2001] 23/4/2010 19:28

bobsidian - the reason they traded above NAV was prices were rising 2003 onwards to 2007. It made sense then.

[smurfy2001] 23/4/2010 19:25

You're free to do as one pleases Lucan. Have a good un'.

[bobsidian] 23/4/2010 19:25

spennysimmo

"bobsidian, you are 100% right however once it does pass it there is no further resistance in sight."

The problem with TW. attracting a share price in excess of 55p is that it will be ascribing a significant premium to its net asset value per share and historically the housebuilding and real estate sectors trade at a discount to such a value.

When it was last at such a level it was little surprise to see the share price turn lower. But this is a bull market and it may be the turn of housebuilders to trade at overvalued levels.

[smurfy2001] 23/4/2010 19:20

Lucan,
Go on then, you're dying to tell us you much you made...

p.s, How long will you stay long TW. for? Barcap (on Bloomberg just now) estimate New Homes Sales could exceed %27 next month as the stimulus ends this month, so could be far more upside yet to come next month.

[spennysimmo] 23/4/2010 19:19

Evening ed.

[bobsidian] 23/4/2010 19:17

londonfinancial

"The housing markets are a whole different ballgame in 2010 . 2009 was many years ago..."

Are you being serious ? Do you honestly believe property is good value on its current multiple of average earnings ?

If the banks thought property was good value, would they be applying such hefty premiums to the base rate for all those seeking a mortgage in excess of 75% loan-to-value.

You will know when you have reached the bottom in a housing market correction when you look down a street and all you can see is "for sale" signs and the 95% loan-to-value mortgage is readily made available without being priced at such hefty premiums to the base rate.

[londonfinancial] 23/4/2010 19:09

Agreed SMURFY2001 Only a fool would sell now , its only just begun .

[londonfinancial] 23/4/2010 19:09

Agreed SMURFY2001 Only a fool would sell now , its only just begun .

[smurfy2001] 23/4/2010 19:04

Lucan, why sell now?

[purplebox] 23/4/2010 18:54

jaws158 - 23 Apr'10 - 18:15 - 402 of 424

purplebox new to T+ trades and bought 20000 TW today on a T+3,if i am going to keep hold of them do i need to do anything else before the three days are up thanks.

jaws,

A T+3 is really a normal trade and if you bought today payment is due next Wednesday, T+3 means 'settlement on the day traded plus three'. A T+3 trade is said to have 'standard settlement terms'.

If you want to keep your shares your broker will take the money from your account on Wednesday and that's all there is to it.

Selling shares also is normally done using a T+3 trade, if you sold today the proceeds would be credited to your account on Wednesday.

Now, if you had sold today, on a normal T+3 trade, that would be a 'closing deal' where both the buy and sell trades settle on the same day and you would only have to pay for your losses or sit back and watch your profit credit into your account.

T-Trades are normally T+5, T+10 and T+20 trades and are not offered by a lot of brokers and aren't available at all on ISA accounts. The share price will carry a premium of, say 0.25%-0.5%, to cover the cost of the deferred settlement – remember that you are effectively borrowing the money. Sometimes this premium is waved as an incentive to get you to buy – this used to be the case with TW. but sadly not anymore.

My broker is TDW, and while much maligned, they offer me credit or 'margin' (about an extra 50% of my current cash/portfolio value minus my unsettled trades - I'm a good customer).

So with my current TW. Trade I can settle on say a T+6 basis 14 days after the original trade date (14+6 = 20) and again both the buy and sell trades become due for settlement on the same day.

This is another example of a 'closing' deal and my gains would be paid into my account on the settlement date. Here I'm in profit so all is good but it can go the other way as well.

One final note – if you are happy with the profit you have made already you could ask your broker to 'close' the trade on Monday using a T+2 and the profit would be credited to your account. Again, not all brokers will do this.

Luckily my broker allows me to trade like this on-line.

Note: All trades are at your own risk, T-Trades carry more risk than normal trades.

[smurfy2001] 23/4/2010 18:50

Lucan, l could tell it was you from a mile off...