Watkin Jones Share Discussion Threads

[glaws2] 06/9/2017 15:11

It's not the first time they done this - the last one was in April. There will be no new presentation - RNS stated "There will be no formal presentation distributed during the visit and no new material information will be given".

[quepassa] 06/9/2017 14:32

Great initiative. Will help boost market understanding of Watkins Jones.


ALL IMO. DYOR.
QP

[rivaldo] 06/9/2017 08:40

Good to see WJG organising an analyst and investor visit today to spread the word:



"Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said: "Today's site visit provides an excellent opportunity for a City audience to obtain an update as to the progress of both developments in addition to gaining a valuable insight into our business model as a whole."

[its the oxman] 31/8/2017 16:01

Nice upgrade, 220p soon at this rate.

[rivaldo] 31/8/2017 09:20

Beaufort Securities have raised their target price to 225p (from 195p):

Conclusion:

"Our View: Watkin Jones continue to secure, fund and develop a pipeline of attractive sites. Amid continuing strong demand for its student accommodation, the Group provides excellent visibility on future revenue, earnings and cash flow.

Following yesterday's news, the Group has now forward sold 1,981 of the 3,545 beds (c.56%) planned to be delivered ahead of the 2019/2020 academic year, having already completed similar sales for all schemes covering the periods 2017/2018 and 2018/2019.

The Group noted in its interim results that the fundamentals of the student accommodation market continue to be attractive. It has received increased institutional demand for its high-quality purpose-built assets, with a number of new international funds now also entering the market. This has led to a positive impact on development values as competition increases and yields improve. With respect to the Brexit, investors have become increasingly confident that the final negotiated outcome will not significantly change the currently advantageous conditions offered to EU students choosing to study in the UK, while Sterling's concurrent devaluation against the international basket of currencies has made it a more attractive destination for higher education. This means that Watkin Jones can expect to find continued demand for its developments.

The Shares has performed excellently year-to-date rising almost +70%, and are now valued at FY2017E and FY2018E P/E multiples of 15.4x and 13.9x, along with dividend yield of 3.2% and 3.5%, respectively. But given the strength of its business model together with its management's excellent execution, Beaufort reiterates its Speculative Buy rating while upgrading its target price to 225p from 195p."

[gswredland] 30/8/2017 13:18

Excellent news and looks like this could be a catalyst

[douglas fir] 30/8/2017 13:00

hxxps://www.constructionnews.co.uk/10022921.article?utm_source=newsletter&utm_medium=email&9



The group’s chief executive Mark Watkin Jones said: “Our ability to secure, fund and develop a pipeline of attractive sites provides excellent earnings visibility for our shareholders.”

In its build-to-rent business, the company is due to start a 322-unit scheme at Bath Lane in Leicester (pictured), which secured planning permission this month.

Watkin Jones now has six schemes targeted for delivery during its 2019, 2020 and 2021 financial years, in addition to its planning and site acquisition pipeline.

[adamb1978] 30/8/2017 12:06

Big bump in the share price on the back of this morning's announcement. This feels like a very long-term hold for me

[santangello] 30/8/2017 11:23

Looking like this mornings (excellent) announcement has been the catalyst for what looks like a breakout.

We shall see ?

[rivaldo] 30/8/2017 07:34

News - another £90m is incoming from forward sales and developments:



I love this paragraph:

"Both developments are due for completion for the summer of 2019 and, following these agreements, Watkin Jones have now forward sold 1,981 of the 3,545 beds planned to be delivered ahead of the 2019/2020 academic year. All schemes to be delivered during FY17 and FY18 and ahead of the 2017/2018 and 2018/2019 academic years have been forward sold."

[bestace] 28/8/2017 17:17

I'm not so sure about the family not looking for an exit. Remember the family trusts sold a big chunk of shares at the earliest opportunity after the 12-month post IPO lock-up period expired, and that was at a price some 30% lower than the current share price.

So first an IPO and then a secondary placing; the direction of travel seems pretty clear to me.

That secondary placing led to a further 6-month lock-up period which expires in just over 3 weeks time. If they were ready to initiate a sale immediately after the first lock up expired, I don't think we should be surprised if we get another secondary placing in 3 weeks.

[jonwig] 27/8/2017 14:59

Que Passa - I agree he, and the other major family holders won't be looking for an exit, but in one or two places he has been labelled the "last of the WJ family". There's a daughter, I seem to remember, but not a succession.

This is straying a bit far into personal speculation for my comfort, and I wouldn't think of holding the shares as a gamble on any such outcome. It's either a good company in itself or not.

[ugandalad] 27/8/2017 13:31

This is a medium to long term hold for me as I believe the CEO will have a good go at delivering the growth he aspires to and I am comfortable with the business risk profile.The shares on Friday were priced by the market after the latest news and hopefully further positive up dates will flow as progress continues. The fact that Midas has come on board is friendly but any playing abouton Monday by the market makers will be short term in nature therefore of little interest to me. But I'm not a trader.

[quepassa] 27/8/2017 13:14

With some 30% owned/controlled by Mark Watkin Jones (1992 Trust at 15.24% + Wills Trust at 10.92%+ M WJ at 3% direct holding), it would be near impossible for any predator to get the Company, unless the current family wished to sell.

Does the current CEO look like the sort of fellow who would let this long-held family Company go on the cheap?

I don't think so.

He wants to build the Company into a major concern. Rightly so.

As I have mentioned before, only time will tell if he has got what it takes to grab this massive PRS/BTR opportunity and go for it big time.


ALL IMO. DYOR.
QP

[santangello] 27/8/2017 12:41

They were hardly in WJG class......PI's want either capital or income....both are 'guaranteed here', and (as mentioned in this [and most other] updates/recommendations)will be so for a long time to come.

My fear is that they are being watched by predators looking to consolidate, and could possibly go on the cheap (say 250p), which would be a crying shame.

[jamdan1] 27/8/2017 09:58

Wouldn't get to excited. Over the last two weeks the shares which were highlighted hardly moved

[gswredland] 27/8/2017 09:50

Saw the Midas just now but rivaldo had beaten me to it!
Interesting in that they often recommend taking some profit on their previous tips but didn't this time.

[santangello] 27/8/2017 06:22

Great spot, and share Rivaldo.

Well, that exposeure should set the share price alight Tuesday a.m.......looking forward to that (nearly as much as the income to be made from WJG mmmmmmmm)

[rivaldo] 26/8/2017 23:55

Good to see WJG tipped in the Mail on Sunday tomorrow (or today if you read this on Sunday!).....



"MIDAS UPDATE: Student digs tip turns to rental flats as shares soar

Watkin Jones began as a joinery business in 1791.

Still run by a descendant of the original family, it is now involved in two very modern aspects of construction – purpose-built accommodation for students and blocks of flats built for rent.

The firm floated in March 2016 at 100p and Midas tipped the shares two months later at 109p. They have since soared 82 per cent to 198p, but should continue to rise long-term.

Chief executive Mark Watkin Jones has delivered on his promises to date and plans to double the firm’s size over five to seven years.

The company moved into student accommodation in 1999 and is now a recognised specialist.

The sites are forward sold to institutional investors and the firm often manages the units – so it does not have to tie up cash for years while it builds the units and it gets an income after.

About ten sites are finished each year, providing up to 4,000 beds. A further 19 sites are planned for 2018 and 2019. The business is robust and demand is strong.

Now the firm is keen to replicate this success in the purpose-built rental sector. A first site in Leeds is already open and prospects are bright.

Midas verdict: Watkin Jones has made big progress since floating and growth should pick up pace.

The firm offers generous dividends, with 6.6p expected this year, rising to 7.3p in 2018. Good value for both existing and new investors."

[x54v] 22/8/2017 10:18

A little bit higher and it's blue sky.

Consolidating sideways for 2 months now. Time for the next move up.

[someuwin] 22/8/2017 10:06

Curving up nicely.

[quepassa] 21/8/2017 13:11

thanks.
qp

[x54v] 21/8/2017 12:47

Institutional investor appetite growing in the area, expectations of profit and EPS for current year continue to be derisked, company has forward sold all of its developments scheduled for completion by Sept 2018 so good earnings and cashflow visibility. Price has been in tight range since last update, looks to be breaking out now to new highs.

[quepassa] 21/8/2017 12:27

Thanks. That's behind a digital subscriber PayWall and not in last Friday's printed edition.

Could you kindly summarise article.

thanks.

QP