Watkin Jones Share Discussion Threads

[davidosh] 07/4/2016 16:55

I just mentioned Watkin Jones on the Smallcap radio show

[its the oxman] 07/4/2016 16:45

Could move smartly part 110p now.

[ron manager] 07/4/2016 14:33

www.proactiveinvestors.co.uk/companies/news/124539/watkin-jones-plc-reports-strong-trading-124539.html

[18bt] 07/4/2016 09:33

Potential to beat forecasts in 2017 with 3 more in legals. Sound start as a plc

[jonwig] 07/4/2016 07:13

Pre-close trading statement should support share price:

[carbon man] 05/4/2016 18:09

tax loss selling over

[jonwig] 05/4/2016 16:17

I was charged stamp duty on my purchse last month, and have now received a replacement contract note cancelling this. No stamp duty on certain AIM shares!

This is in the prospectus (pdf pp 124-125), so if any recent buyers have been charged sd, do challenge it.

[18bt] 05/4/2016 12:59

Well argued from ST - have nibbled off the back of it.

[nimbo1] 05/4/2016 12:56

A tip from ST normally has a positive impact - especially when the print edition is released.

[alan@bj] 05/4/2016 12:40

Thanks tromso1. I am also a subscriber but read your link before I opened the email from IC. Good of you to post it.

[jonwig] 05/4/2016 12:20

Excellent, thanks. (I'm a subscriber but hadn't caught it.)

So there's a trading statement on Thursday (7th) and his target price is 140p.

[jonwig] 30/3/2016 06:57

Most overseas students will already be using this sort of purpose-built accommodation, and you're right that the supply of smaller properties might shrink.
This means, I think, that a UK student will have to pay more for "cheap digs" or move into blocks which cost more anyway.
So demand for WJG's services could rise ... Universities themselves might enter the market? Dunno.

[alan@bj] 29/3/2016 22:03

Any views on the effect of the tighter rules on buy-to-let? I think if anything it's a positive for Watkins Jones because it should mean fewer landlords able to let to students.

[danpollard] 29/3/2016 21:57

Evil Knievil has just tipped these:

A few days ago I bought Watkins Jones Group (WJG) at 104p (plus stamp of 0.5%). This is student housing. I have yet to learn tnav but on P&L and dividend forecasts this stock is cheap.

hxxp://masterinvestor.co.uk/evil-diaries/the-evil-diaries-african-potash-proxama-and-watkins-jones-group/

[alan@bj] 27/3/2016 10:20

Ken - I really think you should visit the company's website and read the Admission document, which describes what the company does in some detail. They are "in the management business" but also in the land procurement, design, build and sell on business too.

Go to www.watkinjonesplc.com then select Results Centre, and you'll find the Admission Document there.

[kenbarlowx] 26/3/2016 10:21

Thanks jonwig
It does sound like they're really in the management business. I wonder if they fix up a long term contract with the flat owners, or just rely on the stickiness of having all the owners having to organise if they became dissatisfied and wanted to switch. They don't say what proportion of revenue is from management & what from construction?

They said who the blue-chip clients are is confidential. Has anyone made enquiries about investing in their flats? What would one buy - a % share of the block, a defined number of rooms, or what? Would they restrict buyers to a maximum stake in a block?

I can see the big advantage of clearing the building of tenants every year.

[jonwig] 26/3/2016 07:32

kenb - I'm invested in two flat operators, DIGS and ESP. The reasons student accommodation is a good market (pro tem) are set out in the prospectus here. Another operator is joining AIM soon, and Unite [UTG] is the biggest company in the sector.

None of these have, to date, commented on the new 3% stamp duty, which they will have to pay. I would imagine there's scope to pass on at all of most of the rise, amortised over a period of years. So: not material. DIGS and ESP are REITs, which has tax advantages.

Student flatsare distinct in that rent is paid in advance on an annual contract, and add-on services prove lucrative (laundry, common rooms, gyms, ...)

As for a moat, again the prospectus explains this (p 16).

Watkin Jones delivers a full service solution to its blue chip institutional
investment partners, including site identification and procurement, planning consent, transaction funding, construction, delivery and asset management.

Watkin Jones was established in 1791 and is a ninth generation family business, which has experienced significant growth since 1999, when it entered the student accommodation market. The Group has strong relationships with institutional investors, and a good reputation for successful, on-time-delivery of high quality developments. Since 1999, Watkin Jones has delivered over 28,000 student beds across 88 sites, making it a key player and leader in the UK Purpose Built Student Accommodation market

The "full service solution" is described in detail later on.

[alan@bj] 26/3/2016 07:29

You should probably check out the company website Ken.

[kenbarlowx] 25/3/2016 23:17

What's the business model here for the buyers of the student flats? Are they in a different position to those doing ordinary buy-to-let? Presumably they have an easier time building a large portfolio, but is their tax position the same?

What's the difference between a block of student flats and a block of ordinary flats, as far as an property investor is concerned?

Can there be any kind of moat around WJG's business? They must have decided to specialise because they believe they have some edge here. That might be the close tie-up with the management company? So is the firm really a property management business?

[alan@bj] 24/3/2016 16:45

That 16:27 10,000 "Sell" at 101.0499 was actually my buy.

[jonwig] 24/3/2016 14:45

Well, I bought a few this morning. A tight spread and got below mid-price. (Buy/sell stamps are, as usual, inaccurate.)

What swung it was their business model, which is pretty de-risked for a builder. And a good record in avoiding over-runs.
A 6p dividend from 2017, which the Zeus Capital chap expects to rise by 5% pa.

[soundbuy] 24/3/2016 14:10

Cheers for that.........