Watkin Jones Share Discussion Threads

[bothdavis] 18/8/2019 11:53

BBC reports over 364,000 A-level students flood clearing for university places.

[2vdm] 16/8/2019 12:09

Good article, but as you say, very poorly (or more likely cunningly managed) The director appears to have been on the board of the construction firm, then the site sold to investors on promises of good returns and lo and behold the freehold of the sites sold to another company. Not surprisingly the same director is also a director of that company. It stinks imo.

Back to WJG, they do a lot of research before committing and then building on a site. Given that they have a strong record of being able to on-sell quickly,I suspect that they already have potential investors at the pre-construction stage. They also have a long and enviable track record in delivering on time, to budget and quality. I doubt that the Stoke-on- Trents, Bradfords etc would be on their agenda, but could be wrong.

[techno20] 16/8/2019 08:57

For anyone interested, this was another driver of my caution. May be one, poorly managed scheme, but then again, may signal wider sector issues....

[2vdm] 16/8/2019 07:41

Good points cordwainer.

[cordwainer] 14/8/2019 15:33

Maybe its worth also pointing out that the private rental area in general, including student rents, is definitely less of a cash cow for private landlords, with tax and regulatory changes really starting to bite. The likes of WJG may stand to benefit from this trend.

As a side note, I think the govt should consider encouraging a lot more corporate scholarships and bursaries, particularly from SME's and especially at a time when in many cases the cost of capital is less than the student loan rate. Maybe it would produce longer term economic benefits too.

[fredfishcake] 13/8/2019 10:29

I'm with Techno, though it's tough to guess what the timeframe is. WJG is insulated to an extent by having forward sold most of its developments, so cashflow should continue for a few years at least. However, the stock market is forward looking, so as soon as there's a hint that this area is no longer a cash cow, I suspect we'd see this stock go into reverse. I've made decent gains here, but have now sold out as I can see risks on the horizon. Probably being over-cautious, but that's my view fwiw.

[red5] 12/8/2019 13:36

Techno - i too look at the student loan system as a bit of a time bomb, however i don't think student watkin jones has much to worry about either. but we shall see. i think i will put a chunk of money in hear and wait and see.

[cordwainer] 12/8/2019 13:26

.. there's no quota system or cap for UK universities accepting foreign students. There is however limited govt support for domestic students. And for some universities, international students account for more than half on average across all departments.

[2vdm] 12/8/2019 11:53

red5, I understand Techno's view, but mine is that universities are effectively businesses.They have large proportions of foreign students that pay full whack and generally they or their families don't go for over-priced and often sub-standard accommodation. Our daughter spent her 1st year in a WJG block.Really well thought out and safe building and one of our neighbour's kids has just done the same and was very happy. May go back into it for her 4th year.

Turning to the business,it is well run and once they get planning, the model is to on-sell to investor(s. So good for the cash flow. They offer a management service back to the investor, so the model is as risk averse as possible. Finally they have started moving into the Build to Rent sector,spreading their offering.

I think that the brokers tipped it at 230 ish recently but need to check. Brexit effect has kept it back a bit, but it is very unlikely that any gov't would restrict international flow of students to UK unis as they bring in big money and as long as they don't exceed quota ratios of foreign v UK students per uni. just my view.

[techno20] 10/8/2019 11:28

Please accept this as a view from a casual observer and no more. I have two kids one who is about to start yr 2 and the other who heads off to university next year. As a result I’ve been trooping round the university circuit and visited probably 12 in the last 2 years. Almost every one is investing massively in new facilities, including accommodation blocks. Given that many kids are questioning the value in an average degree from an average university, the loans system is fundamentally broken and several universities are already under financial pressure it has all the ingredients of a disaster waiting to happen. This could be some time away yet, but I’m steering well clear.

[red5] 10/8/2019 10:06

I have heard some positive news here any reason why i should not buy into this one? RED5 Standing By

[its the oxman] 08/8/2019 15:44

Chart still looking for 220p plus.

[rivaldo] 08/8/2019 12:47

Looks like this development in Bath is going well:



"Completion of new homes and cafe in Bath imminent

Works to build 44 new apartments and a cafe in Bath are almost completed.

External works at the Riverview Court development on Onega Place are set to be completed within the next two weeks, according to developers Nash Partnership, which designed the homes for Watkin Jones Homes....

.....Berwyn Evans, Managing Director of Watkin Jones Homes, said: “We’re passionate about creating wonderful places to live that really enhance and reflect the local surroundings.

"It has been great to work alongside Nash Partnership and the local authority to deliver this sensitive and high-quality scheme.”

[cordwainer] 02/8/2019 16:56

.. and presumably 'any other contracts gratefully received'.

[rivaldo] 31/7/2019 14:54

Cheers - any other extracts gratefully received!



"Watkin Jones on course for a record year
Simon Thompson

Watkin Jones (WJG:207.5p), a construction group specialising in purpose-built student accommodation (PBSA) and private rented housing, has issued a bullish development update and one that confirms that it is set to deliver all six PBSA schemes ahead of the start of the 2019/20 academic year."

[cordwainer] 31/7/2019 14:39

..Anyone would think ST owns a few WJG.

[hyperboreus] 31/7/2019 13:21

Pertinent extract from today's ST article:

'Importantly, I understand from my contacts that the Woodford stock overhang has now completely cleared, one reason why Watkin Jones’ shares could be primed for a rally back to their February 2019 highs of 233p, and well beyond. The other reason for a rerating is that the shares are very undervalued on several measures.'

[alter ego] 31/7/2019 13:10

Tipped by Simon T in the IC at lunchtime.

[its the oxman] 31/7/2019 12:54

Hoping for a move back into 22p-230p range

[rivaldo] 31/7/2019 12:54

Moving up nicely today.

[bothdavis] 30/7/2019 07:18

Am hoping that his investment is as successful as Unite.

[cordwainer] 29/7/2019 22:39

Got back in at 200.9p on 15th July.

[edmonda] 29/7/2019 13:13

Agreed, an encouraging round-up of recent progress reported today.

new Equity Development research note out and highlights the multi-year visibility and that the shares trade on a modest 13x PER, whilst paying a 3.9% dividend yield. No change to ED forecasts or 250p/share valuation, full note accessible here:

[skinny] 29/7/2019 08:26

FWIW :- Peel Hunt Buy 207.34 265.00 Reiterates