| Date | Subject |
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03/3/2021
18:01 | investor0109: Sphere25- quite agree, WJG looks to be making good ground and for good reason. High quality business managed well- believe reasonable value in region of 230-260p, with excellent potential.
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26/2/2021
10:23 | sphere25: Hello 2theduke.
Hello to the Duke. You are the Duke :-)
Yes, it's hard to read this one because of the way the orders come onto the book. The book doesn't often represent the whole picture here. The book can look strong one minute and then the hidden sell algos pop up, which in turn makes the buy algos on the bid run for cover and it looks completely different.
That said, I have nibbled a few this morning too. Just noticed a few bigger buy orders on the book: 25k (20263 remainder at present) at 200p and 21580 204p - larger orders than normal for WJG, which are staying static with the shuffles of the sell algos on the offer. Clearly more capital is being allocated to the re-open trades this week with so many positive moves.
Whether that is a precursor to a breakout in WJG remains to be seen. Volume is light on a quiet Friday morning (though I'm sure folk are watching some of the really sharp moves in the US ten year and the QQQ chart looking rather precarious - the selling can feed through into UK shares if they really go PlungeVille and unwind some of the excesses) and we're about to test those key levels at 207p.
IF we can clear these sell orders at 207-208p, breakout could be on here. If not, it looks like more farting about in a tight range.
All imo
DYOR
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25/2/2021
17:04 | 2theduke: Hey sphere :-) I’ve taken a position but it may be early. We will know tomorrow.
There was someone buying chunks for a while now and then some large seller. Today the seller seems to have finished... to my untrained eyes.
Wider macro trends are on wjg side as well, so I’m ok holding as I don’t tend to trade vs invest.
Good luck :-) imo dyor
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25/2/2021
14:26 | sphere25: Have I missed the breakout here?
It's having a go with the price currently 206.5p. Looks like a larger seller at 208p so a breach above that intraday could make this move interesting. Prone to lumpy moves WJG and often sell orders sit silently in the background waiting particular offer price points to be hit.
Let's see if it can confirm the breakout.
There is no ex-dividend to get in the way this time! :-)
Still, holders gobbled that up and made it back and more atm,
All imo
DYOR
Closing auction update. Price has closed 204.5p. Squint your eyes and see if that's a breakout. Needs momentum tomorrow and it could confirm the breakout but can lumpy ole WJG do it? Don't find this one the most straightforward to trade but it's getting interesting.
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28/1/2021
10:09 | sphere25: Closed out. The bid had actually fallen to slightly more than the dividend, and it's still under now due to wider market moves. We can all see how the dynamic can change with ex-dividends (when you spot them! ha).
Would have given this more of a chance were it not for the wider market move. Rather take some small loses on a few recent trades than get clobbered big if the US does follow through on these moves with much bigger plunges. The trading machines of the new era are dangerous in this day and age when they start spiraling out of control, sit and wait.
I'll buy back here IF we get big weakness.
All imo
DYOR
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27/1/2021
14:31 | 2theduke: I Agree, it's a really annoying timing actually.. I bought it to hold to the trading results and see a rise pre ex dividend to get out, but it's playing at £2, a lot.
It's a really strong share, an investment without doubt. It's just noisy due to the dividend and covid sentiment.
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27/1/2021
13:30 | sphere25: Thanks 2theduke.
Missed that. Dividends! Oh yes, remember those? Almost a forgotten things with the way things have been.
Slipping - clearly watching too many things!
Bizarrely the dividend is incredibly inconvenient considering the price is bang on the chart resistance with the bid building nicely. The setup was there for the breakout. The way this moves, it could have been a ferocious one too - considerably outstripping the dividend amount.
It now depends on the whether the market buys up the dividend amount tomorrow to bring us back into the same strong position or at least above the technical 195p mark. Some of the buying will have naturally been for the dividend too and you can sometimes have the bid fall away in the near term when the dividend buyers move aside. Tend to see that with many shares with DLG being a typical example.
It's a tricky one now from a short term trading perspective.
Only have a small position, was looking to add on the breakout but all change now. See how it moves tomorrow with the gap down in the morning. If it gets bought up, will hang on. Exit if it looks weak and re-try at that next support level at that 185p mark.
I'll be surprised if this doesn't eventually crack this recent high so a different ball game for the longer term holders.
All imo
DYOR
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20/1/2021
09:57 | rat attack: Article from Investors Champion
Despite the challenging conditions, full year results from the leading developer of student accommodation were encouraging. With a significant opportunity in Build to Rent accommodation and institutions willing to provide funding, Watkin Jones looks well-placed to benefit from a supportive market.
Watkin Jones (LON:WJG), the UK's leading developer and manager of residential for rent with a focus on the build to rent ('BtR') and purpose built student accommodation ('PBSA') sectors , announced decent results for the year ending 30 September 2020.
While revenue fell 5.5% to £354.1m, primarily as a result of forward sales of developments being deferred due to COVID-19 uncertainty, that looks a pretty good result in the circumstances.
Adjusted operating profit was only 7.1% lower at £51.7m with the impact of disruption on operations minimised and additional construction costs substantially mitigated, and planned deliveries for the year all completed.
Exceptional costs of £20.5m, including £14.8m in relation to remediating cladding on a number of past developments and £5.7m of additional costs in relation to COVID-19, saw statutory profit fall 47% to £25.3m. There seems some inconsistency in their communication of the impact of the pandemic, with additional costs relating to this simply being treated as ‘exceptional’.
With all Government financial assistance of £0.8m repaid at the start of 2021, management is able to propose a full-year final dividend of 7.35 pence.
The operating cash inflow was £38.3m and free cash inflow £32m, boosting period end net cash to £94.8m of net cash, up from £76.8m at 30 September 2019. With £65.0m undrawn on their revolving credit facility they have plenty of fire power.
Management confirmed a good start to the 2021 financial year, with new forward sales and developments progressing well.
Watkin Jones reports across 4 business lines:
BtR,
PBSA,
Accommodation Management business (Fresh) and
Residential.
BtR made a significant contribution to performance, with revenue up 21% to £94.0m and gross profit £14.9m, representing a margin of 15.8%
In BtR development 928 apartments across five sites have been forward sold for delivery over the period to the 2022 financial year (all date reference here are to September financial year ends). A further three sites (722 apartments) are currently in negotiation for sale for delivery over the period 2022 to 2023. They have a total secured BtR development pipeline of 4,466 apartments across 13 sites, for delivery between 2021 and 2025, suggesting decent visibility.
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19/1/2021
13:23 | investor0109: toptomcat- many thanks, his closing statement here: 'Analysts at Progressive Equity Research are predicting current year EPS of 15.8p, rising to 17.4p in 2021/22 and pencil in respective dividends per share of 8p and 8.7p. On this basis, the shares are rated on a modest price/earnings ratio of 12.8 falling to 11.6 and offer an attractive prospective dividend yield of 4 and 4.3 per cent, respectively. Mr Simpson also notes that financial distress in the leisure, retail and office sectors will enable Watkin Jones to make opportunistic purchases of new sites at favourable prices, another bull point.
From a technical perspective, the shares have broken out of the 183p upper ceiling of the post stock market crash trading range as I predicted back in November. I have no reason to change my strong buy recommendation, nor my 240p to 250p target price. Strong buy.'
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16/1/2021
10:21 | clausentum: From the November update:
"-- Intention to pay a full year dividend for 2020 in line with our policy of 2.0x cover, reflecting our strong cash position, subject to there being no material deterioration in market conditions".
IMO if they follow through with this there should be a higher share price A significant dividend and capital light model make this company ideal for risk averse income investors.
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PLUS1
