Taylor Wimpey Share Discussion Threads

[sir rational] 21/7/2011 09:32

Funny how different buy prices changes your perspective lol

I'm sitting on breakeven so quite relaxed.

Market is in turmoil but TW. safe as ouses, business transformation well underway with profitability restored and progressive divi policy about to be announced.

Perfick ;-)

[sir rational] 21/7/2011 09:24

A nothing day, methinks.

[pilly11] 20/7/2011 16:38

Good buying point here?

[imastu pidgitaswell] 20/7/2011 14:18

Don't think we'll see that - they don't want to leveraging back up again, covenant restrictions, susceptibility to economic downturn etc etc, having very nearly gone bust due to having too much debt - not in these times of likely banking crisis.

Wot they said last time about dividends:

"Dividends

The Board did not consider it appropriate to propose an interim dividend for 2010. The uncertainty in the wider economy has eased somewhat during the second half of 2010, however, we are not proposing a final dividend for 2010 (2009 full year dividend: nil).

We will continue to review our dividend policy in the light of Taylor Wimpey's financial position and prevailing economic and market conditions in the future."

[smurfy2001] 20/7/2011 14:14

Share buy back instead of a dividend would be music to my ears.

[imastu pidgitaswell] 20/7/2011 14:04

I know we've all forgotten what one is, but I'm thinking we might see some news about the resumption of a dividend with the half year results at the start of August.

Now that the future is settled, and TW is a steady cash generative, low debt, high net asset value business, there is simply no reason not to. Low to start with, certainly, but a start, and a signal of intent.

Presumably the management are thinking along the same lines - something has to get the sodding share price moving?

[fewdollarsmore] 20/7/2011 13:43

not much!!

[sir rational] 20/7/2011 11:22

better than a kick in the teeth ;-)

[sir rational] 20/7/2011 09:35

Re-rating play now

[shaws37] 19/7/2011 20:26

Ooooooosh, party on folks....


Money First-time buyers

Number of first-time buyer mortgages up by 17%

More mortgage products at 90% and 95% are available for first-time buyers

[sir rational] 19/7/2011 20:07

Questor share tip: Barratt's margin plan is built on strong foundations
One the whole, yesterday's update from house builder Barratt Developments was good. However, the shares fell 6pc as the market fretted about the future. Questor thinks the falls were overdone.
Barratt Developments
105.9p -5.3
Questor says BUY

Barratt Developments

Barratt sold 1.8pc fewer homes in its last financial year, which ended in June, because it is focusing on business with good margins instead of volume. Indeed, in the second half of the year the operating margin increased to 7.8pc from 5.9pc in the second half of 2010.

The group sold 11,171 units over the year, with the average selling price for each property rising to £204,000, up from £195,000. It sees volumes rising 5pc to 10pc in the new financial year, based on improving trends in the second half. This will be the highest level for three years.

The company also expects to return to profitability (before exceptional items) this year, guiding to pre-tax profits of £40m. This is at the upper end of analysts' expectations, with current consensus shown in the graphic at £33m. Last year the group posted a loss of £33m, once exceptional items were stripped out.

This time there will also be exceptional costs of about £55m, mainly due to cost associated with a refinancing and the cancellation of interest rate swaps. This should push the headline figure into the red, but this has been known by the market for some time.

Net debt was £330m at the end of the year, which is lower than guidance. This means analysts will have to reduce the amount of expected interest payments in their models, which is a positive. The company has refinanced and has £1bn of committed facilities for four years.

The company also said that the Government's shared-equity scheme, called FirstBuy, was working.

However, the share-price reaction indicated that there are obviously some negatives. Firstly, the outlook statement appeared more cautious than its peers. Mark Clare, chief executive, said that trading conditions in some areas outside London and the South East were "challenging".

There was also no sign of the dividend being reinstated, but this was unlikely anyway.

However, as the forecasts show, at least some analysts had been hoping for a payout resumption.

There were also negative comments from Robin Hardy, an analyst at KBC Peel Hunt. "The risk is that Barratt's London exposure blinds investors to the wider risks of a national, volume house builder," he said. "It is now alone in having material debt, has no surplus assets to sell and is making 300 basis points less than its cost of capital, even by 2013. Exposure to London is not enough to counter that." He thinks that overbuild could be a risk in London and hit prices hard.

Of course there is no doubt that things are tough out there for all house builders. However, Questor still thinks the shares are fundamentally undervalued and yesterday's fall has created an opportunity. Mr Hardy's bearishness about London also seems excessive.

The shares are one of Questor's tips of 2011 and they are up 19pc this year compared with a FTSE 100 down 3pc. Trading on a June 2012 earnings multiple of 14, falling to 8.3 in 2013, the shares are a buy.

[smurfy2001] 19/7/2011 17:44

edsthebusiness,

So they shop at Waitrose for 5 minutes and love the benefits? You seem to be an expert in this area... ;-)

[edsthebusiness] 19/7/2011 17:27

"Immigrants love the attraction London provides"

Immigrants love the attraction benefits provide

[sir rational] 19/7/2011 17:12

If they rent, then BTL landlords will buy properties to let out to them.

[kfp] 19/7/2011 17:07

But could the people who arrive here get a mortgage? They are no good to house builders for years and if they take jobs that Brits want too much money to do then Brits wont be able to afford a house for a long time. Unless property comes down to affordable levels .

[imastu pidgitaswell] 19/7/2011 13:51

At the risk of stating the obvious, we just sold our US business...

:-)

[smurfy2001] 19/7/2011 13:07

Many immigrants are also living in sheds in London. There was a program about it on CH4. Also, some houses are housing a family in just one bedroom.

Immigrants love the attraction London provides.

[sir rational] 19/7/2011 12:54

Is there such a thing?

I imagine there are quite a few crowded households in places such as London (or wherever the jobs are) but as they accumulate wealth, they'll be looking to find a place of their own.

[kfp] 19/7/2011 12:35

In immigrant hostels ?

[sir rational] 19/7/2011 12:26

So where are they all sleeping @ night? ;-)

[sir rational] 19/7/2011 12:26

The estimated resident population of the UK was 62,262,000 in mid-2010, up by 470,000 on the previous year.