Taylor Wimpey Share Discussion Threads

[sequoia] 18/1/2011 20:05

Is the deferred tax asset of GBP 633.5 not 20-25p SIR RATIONAL ?
And would the sale of TM add say 20p to the share value.
seq

[smurfy2001] 18/1/2011 20:01

Can relax now :O)

[sir rational] 18/1/2011 19:57

Should have tripled up sub 25p, nearly did but c'est la vie

[sir rational] 18/1/2011 19:55

Yes I can't really understand why it didn't stay in the 40s or so, hedgies at work but the lesson is: look at the underlying value and don't sell too cheap

[sir rational] 18/1/2011 19:53

Luds - oh yes indeedy

[shaws37] 18/1/2011 19:48

Once money is in the bank after TM sale, that 57p will look cheap.

[sir rational] 18/1/2011 19:48

The remaining deferred tax assets of GBP663.5 million, which relate predominantly to trading losses incurred by the Group during the economic downturn, will be recognised on the balance sheet once there is a greater certainty regarding the timing of the Group's return to normal levels of profitability.

+++

Ah, there's another 10p for next year ;-)

[ludlowe] 18/1/2011 19:47

sr ,is it ever too soon to take a profit , before watching again ?

[imastu pidgitaswell] 18/1/2011 19:37

Yes, as simple as that. Good that the FT is so positive, but when you can buy net tangible assets of 57p+ for 38p, why not?

Although have to say I don't understand this quote "The main reason the figure has been high during the past 18 months is that the cash flow covenants we had under our previous banking arrangement meant that we were paying suppliers and land holders early" from the CEO - why would any covenant require anyone to pay suppliers early?

I really wondered at the time how this got down to around 20p - essentially down to hedgie-heaven and an absence of fund manager balls.

I'll bet the bloke at Schroders (14%+) is feeling pretty pleased with himself...

[smurfy2001] 18/1/2011 19:26

So latest NAV will be around 57p with the deferred TAX (current NAV 47p + 10 deferred Tax)?

Current share price 38p / 57p NAV = ~%33 discount to NAV today

STRONG BUY

[sir rational] 18/1/2011 19:24

You sold too soon, Luds? ;-)

[sir rational] 18/1/2011 19:01

Please respect FT.com's ts&cs and copyright policy which allow you to: share

Taylor Wimpey to exceed estimates
By Ed Hammond

Published: January 18 2011 18:36 | Last updated: January 18 2011 18:36

Taylor Wimpey's shares rallied more than 8 per cent after the housebuilder said it had outperformed market expectations in the year to December 31.

The UK's second-largest housebuilder by volume said that an improvement in output and profit margins in its North American arm would boost overall figures.

The group's Taylor Morrison business, which has operations across the US and Canada, has seen a pick-up in activity as the fallout from the cessation of the US government's first-time buyer tax credit abated.

Taylor Wimpey recently put the business up for sale and is in talks with a number of trade and private equity buyers over a deal worth about £600m.

The company said that talks were ongoing with a number of parties, but refused to give details of the timing of a sale.

However, investors were also buoyed by the housebuilder's guidance that year-end net debt would be about £660m, compared with consensus expectations of closer to £800m.

Updating investors before the company's full-year results in March, Pete Redfern, chief executive, said: "The market seems surprised, but we had been telling our shareholders to expect the number to improve."

"The main reason the figure has been high during the past 18 months is that the cash flow covenants we had under our previous banking arrangement meant that we were paying suppliers and land holders early, so the debt number was artificially high," Mr Redfern added.

The constraints on mortgage lending have been a source of concern for housebuilders during the past year and Taylor Wimpey said that the lack of available loans, particularly for first-time buyers, was the biggest issue facing the industry in 2011.

Shares in Taylor Wimpey rose 2.95p to 38.1p on Tuesday.

FT comment

The trickle of positive news to come from Taylor Wimpey over the past three months has started to form a substantial pool. On top of the better than expected profit and debt figures, the group has overseen a management change, the arrangement of new banking facilities, a bond issue and the ignition of the sale of its overseas operations. Near the foot of Tuesday's trading update, the company also mentioned that it was recognising £300m in deferred tax assets. Add this money – equivalent to about 10p a share – to book value and the shares, trading at a 30 per cent discount to net asset value, start to look cheap. Even factoring in its recent rally, they still trade below the sector discount of 20 per cent. While the flow of good news will most likely dry up until the spring, investors brave enough to dip in a toe now might find themselves rewarded.
.Copyright The Financial Times Limited 2011. You may share

[eightounces] 18/1/2011 18:41

And just how often are to in and out of a "Donkeys doodah" isn't that illegal?

[ludlowe] 18/1/2011 18:37

was in and out of here quicker than a donkeys doodah today ,fact

[sir rational] 18/1/2011 18:23

What a day ;-)

Lots of stale bulls have exited the game.

Of course the rise can continue - ask yourselves - if you are a buyer of the 35m odd shares bought today, are you going to sell for a penny or two of profit?

No - you'll hold on for something far better than that.

The TM news looks likely to come reasonably soon and if it's not disappointing could be the catalyst for TW. to spring to a price that exceeds NAV, same as some of the debt-free peer group.

[d20814] 18/1/2011 18:18

last time people got this giddy on old tee dubs it got to 56!!! think we'll see it there again within the year, maybe even within the month.

[letsgetbizzay] 18/1/2011 17:58

FEWDOLLARSMORE - this isn't stopping until 44 ;)

[wendsworth] 18/1/2011 17:25

FEWDOLLARSMORE : On the other hand........!????

[smurfy2001] 18/1/2011 17:20

Plenty to go. Got that 9p increase in NAV to take into account.

[fewdollarsmore] 18/1/2011 17:15

I cannot see this rise continuing tomorrow surely... we have another housebuilder reporting in the morning if the results are not great then could be a down day..

[smurfy2001] 18/1/2011 17:12

That's what l thought. Cool.

[imastu pidgitaswell] 18/1/2011 17:05

Sure looks like it:

[sir rational] 18/1/2011 17:02

IP - pessimism wins the game

[smurfy2001] 18/1/2011 16:46

imastu pidgitaswell - decending triangle clearly broken today, would you agree?