Taylor Wimpey Share Discussion Threads

[spennysimmo] 03/3/2011 10:41

I doubt it. Unless there is an abundance of surplus cash, "controlled" debt will be required. How would they function without using finance facilities when required?

Edit: Granted they may not need a £1.3bn facility but they will require a facility.

[sir rational] 03/3/2011 10:33

Spenny some commentated that the new debt facility doesn't last for many years - would this be because TW. don't anticipate needing such a big facility for too much longer?

[sir rational] 03/3/2011 10:32

Quite right but mkt unenthusiastic about such heavy gearing as at present

[spennysimmo] 03/3/2011 10:30

They haven't just negotiated a £1.3bn debt facility with the intention of being debt free.

[slytherin] 03/3/2011 10:24

I like the fact that they are completely out of future defined benefit pension entitlement accrual. Means inherent risk now constantly reducing. Their mortality assumptions are also very high - can't believe many builders will make it to 86+, so that as an average is very high.

Don't expect TW to go debt-free if they sell NA - they previously said some of the proceeds will go into land bank investment (to help achieve #1 UK status), some will go on short-term working capital and I bet the pension trustees will demand a slug towards their £248m "hole". There are >£900m of short-term creditors, which dwarfs current assets (excl. inventory). Would expect underlying debt to remain around £350m - £400m, but that will be much more comfortable for the market than £650m-£700m. Theory says it is inefficient to be debt-free.

[sir rational] 03/3/2011 10:23

Here we go lads

[the old dog] 03/3/2011 10:02

It seems you can have as many intraday rises as you want, as long as they don't take the price over 40.

Woof

[sir rational] 03/3/2011 10:02

PG are the sector dopes, silly moo that she is

[q2u] 03/3/2011 09:51

erm - I believe that is what they thought in 2007 SR!

[kfp] 03/3/2011 09:51

PG have a "hold" and 36p price target for TW.
Not much of a help, look forward to other brokers comments.

[sir rational] 03/3/2011 09:39

Goodbye 39p...forever!

[chairman2] 03/3/2011 09:25

In these markets if you have two bits of good news
excellent reults and sale in NA
you dont release them together

if there is a NA sale announcment in the next two months it will
lift the share price by another 50% in my view. (Or rather shares
will mysteriously rise because such a deal will leak.)

[kebab77] 03/3/2011 09:17

Yeah, $1b or more for TM ... which is above book value and will make TW. debt-free. NAV will increase further.

[sir rational] 03/3/2011 09:11

kfp - 3 Mar'11 - 08:48 - 7391 of 7395

Sir Rational

They don't actually say that the "TM" sale is a definite ?

The sales process is a definite. Receiving 4 bids last week is a definite. Next round of bids tomorrow is a definite.

Of course what is not definite is a done deal.

But the odds on TM getting sold for something circa $1b must be (what?) 80% or so

[sir rational] 03/3/2011 09:06

Pete Redfern, group chief executive said the house builder, which is in the throes of selling its North American arm, was well on the road to recovery in spite of an uncertain market in the UK.

He vowed Taylor Woodrow would never return to pushing house building volumes at the expense of margin.

Redfern said UK operating margins were up to 7.1% and predicted a return to double digit margins next year.

[sir rational] 03/3/2011 09:03

Premature to sell...

[lol short killer] 03/3/2011 08:58

Buy rumor, sell fact.

Phew.......#

lol

[kfp] 03/3/2011 08:48

Sir Rational

They don't actually say that the "TM" sale is a definite ?

"In North America, markets appeared to have stabilised and there were signs of increasing consumer confidence. The group was evaluating proposals for the North American business and would update the market in due course."

[barf2] 03/3/2011 08:44

In the past I've almost hoped for a poor set of results on a stock in the [mistaken] logic of thinking the contrarian attitude of those big players who govern the markets would push the share price up. I was wrong,they got slammed!

[gbh2] 03/3/2011 08:44

UK market is screwed, we need the DOW to come to the rescue again, roll on this afternoon.

[fewdollarsmore] 03/3/2011 08:42

barf - agree it is fustrating as no doubt if the results we poor the share price would surely drop off a cliff.. perhaps I should change my investing stance to shorting instead