Rhigos
22 May 2017
Bricks, demand, suppliers, stock I have read reports from several house builders over the last year or so of a shortage of bricks. I thought there might be an opportunity of making money investing UK brick makers. There are three quoted ones IBST - FTSE 250, FORT - FTSE Small cap and MBH - AIM. Cost of shipping bricks make it too expensive to import from overseas. Came across this article while researching:[link] was surprised to learn that currently there is a lot higher level of stock than normal, around 3 months supply. This makes nonsense of builders claim of brick shortages. Perhaps a transport issue. This puts me off my idea of investing in them. The fundamentals of all 3 do not seem very attractive to me. IBST looks the best of the three to me.Views anyone?
II Editor
03 May 2017
NEW ARTICLE: 10 best stocks for high-yield dividend investors "Dividend payouts from @GB:UKX:FTSE 100 shares rose by 17% in the first three months of this year. But with so many blue-chips declaring their payments in foreign currencies, nine-tenths of that growth was down to the impact of the weaker pound ..."[link]
Eadwig
02 May 2017
Re: CEO Jeff Fairburn 10yr share option At least PSN didn't pay maximum bonuses for those with responsibility for the quality metric, which fell slightly (I might be talking about the results before last here, actually).I was quite surprised to read the final accounts of a FTSE 100 company where all directors didn't get ALL their bonuses at 100%.But basically, I agree with all said previously. Remuneration committees are a farce - worse than that, they're a waste of time and money.
Rhigos
02 May 2017
Re: CEO Jeff Fairburn 10yr share option aspace, "308 million shares per last annual report (31 Dec 2016) not 3.27 billion."Agreed looked at row on list for Taylor Wimpy by mistake, Mkt Cap given as £7,190.1m so £100m worth of new shares should only alter SP by about 1.4% not 10% so do not understand where 10% comes from in FT article.
Eadwig
02 May 2017
Re: Strong Buy Signal aspace, "I think it's helped at the CFO Mike Killoran has been in that role nearly 20 years giving him the ability to understand costs"Due to the sector experience of the top management, PSN's planning ALWAYS includes an allowance for a major cycle downturn, more so than any other house builder, and they carry no long-term debt. Two of the reasons I always refer to them as 'best of breed'. [I wish they would get a better grip on their quality control. That's really my only specific concern with them].the way, I beat your buy price. My current holding is @407p - and this is my second cycle following PSN. If I'd never invested in any other company and just stuck with PSN, I'd be a very rich man today - even accounting for 3 years of none holding (2008-2010 inclusive) in between the two rocket rides.
aspace
02 May 2017
Re: CEO Jeff Fairburn 10yr share option 308 million shares per last annual report (31 Dec 2016) not 3.27 billion.
Rhigos
02 May 2017
CEO Jeff Fairburn 10yr share option According to last weekend's FT current potential value of value of 10-year share option plan, based on dividend payouts, carries a value of £100m. Plan conceived in 2012. The article stated that investors have been alarmed by the scale of share-based payout and the diluteive effect it would have on their own stakes because the company will have to issue thousands of new shares to pay Mr Fairburn. This equivalent to 10% of the value of company shareholder Royal London Asset Management said this week.10% of pf PSN's shareholders failed to support pay report on Thursday.I do not see how they got to those figures as market capital of PSN is £7,190 m and there are currently 3.27 billion shares.
aspace
01 May 2017
Re: Strong Buy Signal I don't think north of 2000p is too rich actually. PSN's results remain strong in the following respects:* Annual revenues have nearly doubled over the eight years since the Global Financial Crisis showing PSN's ability to capture market demand. * Net profits after tax and all comprehensive items (of which there are not many) have increased nearly tenfold from £64m in 2009 to £606m in 2016. All supported by cash inflows. Why? Market demand for PSN's excellent new build homes supported by help-to-buy AND PSN's concentration on speeding up planning and build processes AND superb cost control. * Cost control is evident in average wages per employee which have remained flat at £40k per employee. * Virtually debt-free - no leverage to speak of. So interest-cover is more than 200x, which is unheard of amongst my other company investments. Even at the current price of £23.20, PSN is only on a PE of 10 and a dividend yield of 4.7%. I think it's helped at the CFO Mike Killoran has been in that role nearly 20 years giving him the ability to understand costs and no doubt he played a key role in formulating the capital return plan. He is also the director with the largest shareholding stake. At 55 he is still young enough to continue his contribution for years to come. Sure he is sitting on 3.5m share options which must be worth £millions when he chooses to exercise them. But given how well he and the Board have served us shareholders, good on him I say. I just hope he is mentoring those below him so we can have a smooth transition when he decides to move on. When I bought these shares in 2011 at £4.35 I knew they were a good buy but had no idea they would be my best ever investment both in dividends and capital gains. And today's price remains a reasonable valuation.
fitcontroller
19 Apr 2017
Re: Strong Buy Signal I too thought north of 2000p too rich but bought 3000 anyway, am I glad I did.
Rhigos
19 Apr 2017
Re: New all-time closing high 2242 Another all-time closing high today 2297. Prospect of a Conservative government in power after June election with an anticipated strong majority, the market appears to thinks will be good for UK economy.It worries me a little how the populace will face up to inflation rising by up to I forecast 8% to 12% within the next 2 years yet wages being limited to rises of 2% to 5%. Smart move to have election sooner rather than later IMO.Not so bad for those of us with shares that pay good and often rising dividends. Those investors in FTSE 100 companies and others earning profits in dollars have at least a hedge against inflation. Shares in precious metal miners IMO a particularly good hedge against inflation.
Rhigos
18 Apr 2017
New all-time closing high 2242 Been a good day for house builders, student property REITs (e.g. ESP and DIGS) and HWDN. Despite FTSE 100 being down 2.46% today I had three new highs (since I bought) in my portfolio today UKW, PSN and XPP.I suppose the £=1.2762 USD helped UK focused companies, it certainly had opposite affect on mining and oil shares.
malj1
06 Apr 2017
Re: Strong Buy Signal Tongue in cheek there. A better buy signal is the usual posts from Jockey/Jonga/HCU/Taffychaff that the housing market is doomed. They've had a perfect track record over the past decade in being wrong. They're all quiet at the moment, though this could be that they've gone bust! We can only live in hope .................
Eadwig
06 Apr 2017
Re: Strong Buy Signal Nigel Mills, Non Executive Director, bought 716 shares in the company on the 4th April 2017 at a price of 2088.00p. The Director now holds 716 shares representing 0.00% of the shares in issue.His full ISA allowance - and quite a high price as well. He'd have been better off buying 'em 6 months ago!Still - another classic buy signal, but above 2000p is too rich for my blood, even with the 110p dividend on the way.
Mark Y38
10 Mar 2017
Re: Interim ex-div day (25pps) I have to say the reduction in dividend allowance annoyed me. It is another double whammy. People who have planned and saved to help them in later life have had a terrible time recently due to the pathetic interest rates for savers. So the obvious way to try and boost things is to take a little risk, invest on the stock market, putting money into companies and then and try to boost income. In the 80s the Tories were keen to encourage in share ownership.Now the government is penalising those people under the excuse of tackling private company directors avoiding income tax. As usual, governments (of all persuasions) use a hammer to crack a nut and do not look at (or do not care about) others who may be caught up in the changes.They could have distinguished between publicly listed companies and private companies if they had wanted to make the tax system "fairer" as they claimed.If you think you may be affected, look to Bed and ISA shares if you have an ISA allowance this year, next year and at the start of 2018/19. That will be up to £55,240 worth of ISA you may be able to use (allowance goes up to 20,000 in April) but remember you still have to pay dealers fees and stamp duty to bed and ISA so it is not a free option.
Rhigos
09 Mar 2017
Re: Interim ex-div day (25pps) riverside red,Reduction to £2,000 annoying and more investors will have to file tax returns. Before the crash I concentrated on capital gain outside ISA because of generous exemption limit. After markets slumped it was hard to make net capital gains approaching the limit. The last few years I have concentrated on high yield shares in my dealing account to boost my modest pension and realised little net capital gain. Now I will have to rearrange shares outside ISA to concentrate again on capital growth and keep high yielding shares in ISA. This may work if UK stock market continues to rise.
