Taylor Wimpey Share Discussion Threads

[imastu pidgitaswell] 01/11/2010 15:49

Eh?

Considering what passes for humour on some threads, I thought it was quite witty.

Still, let's just say Blackrock are adjusting their holding up and down all the time. Fnaarrr...

[defcon4] 01/11/2010 15:06

PMSL Sir A R.

[mashraf] 01/11/2010 15:02

sir alf ramsey filtered for unreasonable attack on a fellow investor............

[spennysimmo] 01/11/2010 14:58

JJ, sort the thread out.

[sir alf ramsey] 01/11/2010 14:52

Pleased to be of service smurfy, now where was i,..

ah yes, as a matter of interest stupidgit if you must continue your dalliance with CFD's, i hear C*ckFagDogging is a regualar pastime in the car park behind The Admiral Nelson, Twickers.

PS Remember to wear an eye patch over your right eye. GL.

[smurfy2001] 01/11/2010 14:46

Sir Alf Ramsey,
That's a great article, l posted some bits of interest to investors here in case they don't bother to click your link.


The housebuilder who is ready to take the long road back to recovery
Monday, 1st November 2010

"Prices are very stable at the moment," says Redfern. "Stable is good for us. Prices have not gone up or down for a sustained period of four months or so for some time."

Redfern nevertheless thinks the worst is over. He says: "We would be foolish to say that a double dip is not possible. But we do say that it is not likely. Just as we say a sustained period of rising prices in the short term is also not likely."

A rise in mortgage lending "is by far the biggest factor." But the amount of homes being built in the country is also important. In 2006, the year before the crisis, the industry built 180,000 houses a year, he says. This year it will build 100,000.

The housebuilder did not expect a great deal from last month's government Comprehensive Spending Review (CSR). "We were looking for things not getting worse, rather than a massive upside," he says. And to that degree Redfern got his wish.

Taylor Wimpey will go back to what it previously did, which was to loan first-time buyers up to 25 per cent of the cost of a home.

Redfern says that shared equity schemes account for 10 per cent of the houses and flats it builds a year in the UK. Social housing, he adds, is also not a significant part of its mix.

Those close to Taylor Wimpey expect it to sell its listless US business at some point over the next two years when the market begins to pick up.

In August, the business began to return to something like normal trading conditions, when it posted its first profit in more than two years.

The business hiked margins by one per cent to 7.5 per cent, but this is still a long way from the 14 per cent the two firms enjoyed in 2006 because average prices were some 20 per cent higher than today.

Redfern says: "We are unlikely to pay a dividend in 2011, more likely in 2012, and will be very disappointed if we are not paying dividends by 2013."

The firm, which carries £700m of debt, comes to the end of its current banking facility – with Barclays, Lloyds Banking Group, Royal Bank of Scotland and HSBC – in July 2012 and has already opened talks.

Redfern says: "We are in a very different place to where we were at the time of the last refinancing [in 2009]. We had debts of around £1.5bn and we were in the middle of the financial crisis. Now our debt is much less. We would be disappointed if talks were not concluded by the middle of next year." Its current deal gives it little flexibility to buy land.

Three years previously, in 2007, Redfern's star could not have been brighter. At just 36 he had just completed the merger of his firm George Wimpey with rival Taylor Woodrow, leaving him as one of the youngest ever bosses of a FTSE 100 business, employing around 10,000 staff, with a market value of £5bn and a share price of 518p.

After having secured the business, Redfern is now faced with the slow climb out of a stagnant housebuilding market that many observers think will take at least two years to recover. The stock currently hovers at around 24p, giving the business a market value of £758m.

Is a high flyer like Redfern worried that – after the highs of a merger and the demanding lows of debt financing – the road ahead looks mundane in comparison? Needless to say, he disagrees: "Its not frustrating. We now have the time to get things right. We can get under the skin of the business and the land deals that we do. Big land deals can see us still building on a plot over ten years later. The first big land deal I did when I joined this company is still being built on today. That gives you a sense of how long-term this business is."

It seems that Redfern, his investors and the housebuilding firms are all braced for a long haul. For an industry that has long been characterised by short-termist errors of judgement, that is an uncharacteristically sensible state of affairs. Let us hope it continues.

[imastu pidgitaswell] 01/11/2010 14:28

Alf - many thanks for the tip. I'll make enquiries...

[the disciple] 01/11/2010 14:01

Yup it's boom time and wer'e up 1/2 penny .

[defcon4] 01/11/2010 08:43

Up she goes, but will she stay up, lows in?

[smurfy2001] 01/11/2010 00:06

fletcher, indeed, they could effectively wipe out £600m debt with the America unit alone.

[fletcher] 31/10/2010 23:42

There is one overriding fact that seems to be overlooked in all these posts, and that is:-
There will be highs and lows in the share price, but dare I say it the British are love with home ownership, and property prices, it is now part of our culture and that is what unpins all the house builders share value.

Plus of course TW has two tricks up its sleeve, as I have said before, America and Canada! The sale (or part sell off) could, combined with retained profits, virtually wipe all of its debits. Now there's a thought, a company with out debt.

[shaws37] 31/10/2010 21:35

True smurfy.

[smurfy2001] 31/10/2010 21:31

There's nothing wrong with stakebuilding, no one here is suggesting you go all in.

[shaws37] 31/10/2010 21:22

That's the hard bit J_J. Having had a look at the charts, id say 21 - 20p is support but TW is being forced thru supports all the time. It's a hard call.

[jibba_jabba] 31/10/2010 21:15

At or near the bottom..

[shaws37] 31/10/2010 21:10

when it's still alive ?


jibba_jabba - 31 Oct'10 - 20:18 - 4839 of 4841

When is the best time to buy a share?

[smurfy2001] 31/10/2010 20:20

Good for house stocks????

--

Fed chairman Ben Bernanke is likely to extend quantitative easing by as much as $1tn on Wednesday. Crucial meetings of the UK, European and Japanese central banks follow on Thursday and Friday

[jibba_jabba] 31/10/2010 20:18

When is the best time to buy a share?