psmith64
09 Jun 2015
Undervalued Still looking pretty cheap to me and the most undervalued of the major house builders.We could easily see 1500p here inside the next 18 months IMHO.The real hidden value will come from the strategic land back.DYOR as ever but with growth in dividends a good chance for impressive capital growth what is not to like here.
binjiou
11 May 2015
affordable homes Hitherto, there is no evidence that our elected representatives give a flying f--k about the lack of affordable homes . In a sensible society, the housing problem would have taken greater precedence in the election campaign. Will the new government recognise the magnitude of the problem , do the necessary , and stop playing around with stupid help to buy schemes ? Hopefully the housing problem will now come to the fore----- There should be no scope for ever increasing prices . Govt should free up the planning system , and force builders not to sit on large land banks . They should also abandon" right to buy "schemes and" help to buy"schemes. and aim at promoting larger numbers of truly affordable houses being built quickly. Builders should then benefit from economies of scale . High house prices mean fewer and fewer " owners have any disposable income ; a consumer society depends to some extent on disposable income . Having most of the wealth in the country tied up in property is not productive.Builders and builders` merchants should do well if government starts to take the problem seriously.
old_punter
08 May 2015
Re: Jim Slater Telegraph - Buy Bovis Thank you Jim Slater, the shares are up 70p since the tip last week end, and some of us have trousered a few bob. Shares may well motor on but feed the ducks when they are quacking.
Hydrogen Economy
03 May 2015
Jim Slater Telegraph - Buy Bovis I bought Bovis and Redrow late last year as I felt their SP had not kept pace with the earnings rise and strength in the market and I like BVS yield. RDW had a great boost following results which exceeded market expectations and are up 30%. I think BVS has potential for a re-rating, but don't listen to me, Jim Slater does states it clearly and with authority below. I will look to add this week, especially if election worries cause further fall. I think that risk is overdone as stated on BKG BB. Good luck and please vote with care.[link] I tell you why I am still attracted by the value of shares in British housebuilders, I need to give you some background information on price to earnings ratios and their relationship to anticipated growth rates in companies’ profits. The average p/e ratio of the London stock market is about 17 times expected earnings for the next 12 months. For example, a company expected to make £1m in profits after tax with 10 million shares in issue would have prospective earnings per share of 10p with a share price of 170p and a market value of £17m. The average growth rate in earnings per share for British companies over the year ahead is currently about 13pc. Usually, companies with above-average growth rates command higher than average p/e ratios. For example, a company with a growth rate of 20pc a year might have a p/e ratio of 25, while a company with a growth rate of 5pc might have a p/e ratio of only 10. Companies with powerful cash generation, strong balance sheets, attractive dividend yields and reliable records of increasing both earnings and dividends usually command a premium rating. Unilever, for example, has all these characteristics and is priced at 22 times earnings per share, which are forecast to grow by about 12pc next year. With a dividend yield of more than 3pc, it looks good to me. But sometimes fast‑growing companies have astronomic p/e ratios that lose touch with reality. For example, Asos, the online fashion retailer, was recently tipped at £36.29 by one of its “house” brokers (stockbrokers employed by listed firms as their agents on the stock market). At that price the prospective p/e ratio for the year ending August 31 2016 is an astonishing 70, dropping in 2017 to a still uncomfortably high 47. I prefer to invest in companies with low p/e ratios in relation to their earnings per share growth rates. The housebuilders attract me because they have low p/e ratios due to investors fearing that there might be another housing crash and worries about Labour’s plans to cap rents and prevent the hoarding of land. Bovis Homes' earnings will grow by 550pc over five years if forecasts are met However, after the election, whatever the shape of our new government, there will still be a shortage of houses that is likely to last for many years to come. Jefferies, a respected broker, came out on April 10 with an excellent 61‑page circular on British housebuilders. The broker was very bullish about their prospects, making the point that this year had started better than expected, that their investment fundamentals were excellent and that their growth records since 2011 were far better than most. Jefferies recommended a select number of companies including Bovis Homes and Bellway with price targets more than 30pc above today’s prices. I have a holding in Bellway and have been building a more substantial one in Bovis, which is especially attractive to me because 75pc of its properties are in the south of England – the highest concentration among national housebuilders. Telford Homes, which I recommended in March, attracted me for similar reasons. Telford is focused on London, including properties that should benefit from Crossrail. A recent
one4all
23 Feb 2015
nice results and broker upgrades BUY
Hydrogen Economy
23 Feb 2015
Re: BVS Results 23rd Feb Results – excellent, as expectedRevenue +49%Profit BT+ 69%EPS + 75%Div + 159%Outlook positive for volumes and pricing“Customer demand appears robust at the start of 2015. Mortgage rates are at historic low rates and real wages are growing, supporting affordability. The changes to stamp duty announced by the Government in 2014 are also positive for consumers”“The Group entered 2015 with forward sales of 1,752 homes, a 27% improvement on the 1,377 homes brought forward at the start of 2014”“the Group is confident that it can deliver its expected legal completion growth in 2015.”Area of some concern is costs - 12% increase in cost/build, 7% of which due to labour/materials, balance attributed to change in mix (bigger units).“With the improvements in activity levels and higher sales prices, the cost of building new homes has increased and the supply of additional labour to fully support the higher production levels remained constrained in 2014. The main driver of the increase in costs has been subcontract labour, but material prices have also contributed to the increase. The pressure experienced during 2014 seems to be reducing at the start of 2015.”The cost increase was more than I had estimated so despite revenues being better than my guess, the EPS at 78.6 fell slightly short of my 80-84p guess, so only a 75% rise!Happy holding BVS H2
Hydrogen Economy
18 Feb 2015
BVS Results 23rd Feb BVS FY results out on 23rd Feb. We already know from Jan Trading Update that:- -Completions are 29% up- Av Sales price is 11% Up- Final Dividend 23p giving 35p FY (4% yield) I estimate from the above - Post Tax Profit up~ 79% EPS of 80-84pWe saw RDW rise 17% after they posted 54% H1 revenue rise and 93% EPS gain (very happily). BVS is I think a little fuller valued in the short term at a PE of around 11 Vs RDW 8.5ish, but that probably reflects that BVS has a better yield.I topped up partly in expectation of a rise after results but mainly they offer great growth and yield for the medium term. H2
Rusty Jock
15 Jan 2015
Re: Excellent RNS and SP dives I can only wonder if some folk were holding for a higher dividend indication , and sold out positions when today's statement reconfirmed previous guidance .If not , what else ?
falseyankee
15 Jan 2015
Re: Excellent RNS and SP dives Couldn't agree more. Even profit taking doesn't really explain it to me- after yesterdays drop I'd have expected people to be either out, or in for the medium to long term.Very odd - hope I haven't missed something - I took it as a buying opportunity !!
Bantam Spirit
15 Jan 2015
Excellent RNS and SP dives Absolutely ridiculous!
