Wren (See LSE:WREN) Share Discussion Threads

[Abuse team] 21/3/2006 17:28

Post removed by ADVFN

[philjeans] 21/3/2006 16:54

Since posting this new thread last night, there has been a little buying and price has hardened 10%.

Stock is very hard to come by, but a sharper price may prise a few more away from stale holders.

We were at 24p a few months ago and so there is plenty of headroom - and remeber new shares were issued two weeks ago at 22.3p!

Still a stonking bargain at p/e less than 4!

[philjeans] 20/3/2006 21:30

A small but highly profitable home counties specialist builder, currently traded on OFEX. Successfully operating over the past 12 years, the company has focussed on obtaining planning consent on brown field sites (often large gardens of detached houses in the stockbroker belt) and building much needed residential units of all sizes around London.

Wren has recently begun to specialise in retirement houses and apartments and currently has options outstanding on 350 residential units (290 retirement properties) which , if all succesfull, would have a gross sale value, after build/conversion, of over £100M!

But t/o last year was only £2.4M as they need finance, and time, to develop. They came to OFEX in late 2001 at about 14p and the shares have gone nowhere since; currently 12p but have gyrated between 9p and 24p over the past 4 years.

REASONS TO BUY

* profit in last f/y to 31/07/05 was £1,027,000
* current P/E is therefore around 4; and falling
* last report announced they were considering promotion to AIM to gain higher profile; raise more cash and improve share price - directors have been disappointed with market perception, and reception, to date. I understand plans are now well advanced.
* I know that current trading is very strong and total earnings this year will be well up - however, with these small builders, timing of sales is critical and completions either side of the date line severely impact results in the short term. That happened a couple of years ago, but things caught up in 2005.
* co has EXCELLENT web site, providing full info - wrenhomesplc.co.uk and the business uses up to the minute digital mapping software for its planning applications and builds.
* share price is currently bumping along the bottom but; AN ANNOUNCEMENT ON 13TH MARCH REVEALED £500K OF NEW SHARES HAD BEEN ISSUED AT 22.3P - ALMOST DOUBLE THE CURRENT TRADING PRICE.
* two founding directors own 93% of issued shares; this means there are very few available in the market and prices can be volatile

SUMMARY

An unknown, highly profitable, specialist housebuilder in the frantically sought after south east catchment, soon to be listed on Aim; has issued new shares at almost double the current price but you can still buy at 12.5p!

As ever DYOR etc. I hold.

NOTE - As shares are traded on OFEX at present, I can't seem to get current charts or figs across from that site, but see Ofex.com for full details of co.