Ben Bailey PLC (Housebuilder).
The Mail today said to buy Bellway as they looked very cheap. BBC is cheaper still and is constantly overlooked by analysts.
I am lucky enough to have been in this one for years, and as 2005 started, it hit 500pps. After interims that said it was affected by the slowdown in the market, and the general malaise in the housing market, it has plummeted by 30%. But is this overdone?
The basics make it look very cheap. Trading on a P/e ratio of 3.508 as compared to Bellways ratio of 6.279 it has a similar dividend yield (3.198%). Having read the investors reports it appears the market did overreact, as hidden behind the headline of being affected by the market slowdown was an increasingly large landbank and a move away from their traditional stock of 3 and 4 bed detatched homes and into semis and townhouses, to increase the margin on the land they own.
Further to this, they are specialists in brownfield development, which the government is known to favour and operate solely in the north of England, where the housing market has been less affected than elsewhere.
January sees the year end results posted, and with all the above taken into account, as well as the predicted housing crash not happening, I see a return to the higher sp levels of late 2004 / early 2005. Add into this a 15pps dividend and I see a winner, both short and long term.
Thoughts anyone?
Alan

Shares are usually "cheap" for a good reason. In the case of BBC the interims to June showed sales up over 20% and pretax profits down nearly 20% for a period when most of their competitors were doing much better. IMO has to put a question mark over management. Gearing over 100% added to the prospect of a potentially serious cash situation if housing market deteriorated quickly. Land does not pay the bills, as many found in late 1980s/early 1990s and banks are prone to panic at just the wrong time. Stabilisation of housing situation suggests the worst for them may be over and who knows, one of the big boys might even fancy adding that land bank whilst they remain "cheap". My play in the sector for many years has been KIE, which has the benefit of a successful cash generative construction arm to fund the housing activities. It is arguably "dear" but I would not switch. Good luck Alan, your witty comments on Talk to Yourself thread invariably bring on a smile!

Thanks for that, Partridge.
Its a no-brainer for me, cos I got in so cheaply, and I feel confident of a much better set of results than the interims indicated.
Also, as you say, if the supposed M&A frenzy ever reaches this sector then the P/E ratio must make it a target.
The real problem with this company, as the chart suggests, is so little news flow that we are all left guessing between each set of financials and that is why it tends to swing so wildly at each full year / interim.
Good luck with KIE.
Alan

Is this the start of a sustained rise to a more suitable price, given the ratio?

Well, don't say I didn't flag it up.
Look back at previous years charts and you will find that this one rises rapidly most November / Decembers.
Perhaps the interims always err on the side of caution. I do hope so!!
Alan

Still in that upward trend, fellahs. And on very low volumes.
Alan

al, congrats. ( i thought the other one was the talk to yourself thread?)

Thanks for that, Boz.
It aint finished yet.
I think this one will be strong to early 2006 when the finals come out, and then drift through to summer.
It seems to do that every year!!
Alan

We've seen constant rises since this thread started, every single day.
Will it continue today?
I think a breather is in order, but then balfour beatty has been upgraded and this may knock on through the construction sector, though to be fair, they operate in very different areas of construction.
Drifting for a few days, then onwards. 400pps by late Nov.
Alan

For anyone interested I've dug out these few quotes from the interims and other places;

(02/08/05) Interim Report: "...and will produce volume growth in the current year"


(29/04/05) ANN: ch - "All of these factors give the board confidence that we can deliver another set of good results in 2005"


(01/03/05) Annual Report: ch - "Currently our forward reservations are 20.0% higher than the same period last year. This coupled with the quality and breadth of our product range, together with the strength of the improved land bank, give the board confidence in producing satisfactory earnings in future years"

Turned out nice again!!
This is a very illiquid share.
Very small demand creates large upward movement.
Of course the reverse is also true, but the housing market looks more secure with every report that comes out.
Good gains and still going strong.
Alan

Only 15000 traded and a rise of 11pps.
What more can I say.
May see a bit of profit taking now, but the share is so illiquid, we probably wont.
Remember I said 400pps by late November.
I may have to recalculate that, but 430pps by xmas is most certainly on the cards.
Check the charts. This one is predictable and we will see steady rising from now to end Jan/early feb.
Alan

Well its motoring at the moment Alan - nice call

alan, i think you've got a trespasser!

Another good start to the day. Can it keep it up?

Its motoring today Alan

Another 10% by new year, Baz. I hope!!!

This thread started at 365pps. Now 399pps. Thats almost 10% in under 2 weeks.
Evidently it can't go on at that rate, but it is following, uncannily accurately, the graph for the previous two years.
Last year it peaked at over 500pps. I don't think it will hit those heights again soon, but I do believe we have a steady rise in front of us between now and the end of Jan.
Alan

And theres the four quid I said by late November. It's early. Sorry I got the timing wrong, but I do think it will drop off again alittle before climbing some more!!!
Alan

Nice strong finish to the day, almost back to its intra day high after an earlier fall back.
Wheres it going tomorrow?
haven't got a clue, but it's generally upwards for the next couple of months, I hope.

Another good day for you Alan - was beginning to wish I had switched my KIE, but they too are nicely blue today. Sector nearly always has good run Nov-Mar and hopefully this time no exception.

Fingers crossed, Partridge.(For KIE as well)
Alan

Well 2 weeks since this thread started and we've seen a rise of about 12%.
Will it go further? I think so.
Will it go in a straight line? I doubt it, nothing ever does.
Where is it going tomorrow? Your guess is as good as mine. Probably better, but the day finished stongly, as it did on Monday, and thats often a good sign.
Alan

Another good strong day. It's a boring old share, this, cos the news flow is nil, so unless there is anything dramatic, I'll drop the daily commentary.
Still think theres a good few miles left in it, but as it has risen so well in the last couple of weeks, I think it will drop off for a week or so before starting a year end surge.
Anyway, I'm bored of talking to myself.
Alan

I also think there are a few miles left in it, maybe up to 440p before some consolidation. When does it go ex-div? As it seems to be repeating last year's pattern on the chart I intend to hold into the new year. Good spot Alan.

Its repeated it for the last 2 years now, Suth. I've held for about 8 years now, and what started as my first ever share, and a speculative punt, has become a lovely divi payer for me!
Back in a mo with the ex divi date.
Alan

Doesn't go ex divi till April next.
Alan

PS,
Nice to know I'm not on my own with this one. 8-)

I bought them following your earlier posting and my investigation on this and the sector in general. Looks like it may be one to move in and out off if predictability holds and take some capital as well as good income from it; that is, if it isn't taken over first. Will keep you posted on what I do with BBC.

She moves again!!
SSSHHHHH!
Lets keep it our little secret!!8-)
Alan

Alan - KIE just about keeping up with you!

Partridge,
I think we're due a pause, while you catch up.
Keep the faith.
Alan

Partridge,
Have you caught up yet?
Can we get going again now?
Pleeasseee?
Alan
;-)

KIE comfortably ahead if you look at last 3 months, but you just have the edge on one month (by my crude calculations about 12% against 10%). KIE AGM due shortly and I hope for positive spin to put me ahead before Xmas!

Best of luck to you, partridge. I would be very happy if you made 1000% by xmas, providing I only lose by a short head!!!
Alan

Just had a look at Telford homes.
Good interims this morning, saying that even in the SE house prices haven't crashed as predicted and it is recording another record year.
This company is trading on a P/E of 8.176 as opposed to BBC under 4 and it has 150% gearing.
Still think BBC looks way too cheap, and the run up to the year end will see it rise a good bit further.
Alan

And another one reporting today. Crest Nicholson. Everything looking rosey, sp rising on results and a P/E ratio of 7.849.
In this season of housebuilders reporting, the message seems to be; "Hey guys, it aint as bad as we thought it might be".
Gives me great confidence that as focus turns towards BBC year end (31/12) this will rise in anticipation and again on publication.
Alan

Not a lot of volume on BBC, but I think the MMs will push it up to reflect what else is happening in the sector, which seems pretty rosy as Crest numbers indicate. Hopeful therefore for continuing rise in SP into the BBC year end and with some even modest activity it good jump nicely.

It also appears today that McCarthy & Stone have bought a load of their own shares. I know they aren't quite the type of housebuilder we are talking about here but it is another sign of the entire sector being undervalued. The trick, as always, is to find the most undervalued!! That is why I harp on about the P/E ratio and the divi yield of 15pps.
Alan

As I have written previously, I believe this share to be predictable over 12 months, and the last three years charts are almost a copy of each other in the timing of rises and falls and the angle the chart climbs and drops.
Between end Nov 2003 and Feb 2004 there was a rise of about 30%.
Between end Nov 2004 and Feb 2005 there was a rise of about 30%
I do hope that the predictability continues. That would target holders for a price of about 540pps.
Heres hoping it is as forecastable as it has been for the last few years.
Alan

Alan - thought KIE AGM comments might spur them ahead of BBC. Chairman's statement roughly translates as "things are going stonkingly well" and the shares drop a few pence. Funny old game, but I still expect both to do well over coming months.

Me too mate. Its the results season in this sector and the crash that discounted them all never happened!!
Good results on one player usually trancribe to an entire sector being moved up. Not to be today, but we will have a merry christmas and happy new year with BBC and KIE, I'm sure.
Alan

Alan - Looks like a few people read have the AGM statement for KIE a day late. Quietly confident - but BBC may still get ahead on their trading update due in a couple of weeks.

I love a good natured race!!
Alan

oop's sorry Al wrong thread.

You know you're always welcome, Driver.
My home is your home, my food is your food, my wife is y..., sorry, got a bit carried away and emotional there.
Alan

Al
I know Im not a very good tipster, but take a look at cct read the thread well some of it anyway, cct the seller of this years top must have toy (THE DALEK) small M/Cap 25m sp 52p recovering from a high of 160p all time high 450p

Got one on my Xmas list, driver. Giving it the once over as we speak (or read, or whatever).
Just noticed the headlines in Saturdays Express are along the lines of "Crash, what crash? The housing market is off again".
Didn't read it fully, but that is the kind of news this sector needs. It won't do it any harm, anyway!!
Alan

Here she goes again.
Bang on time to mirror last 2 years charts.
Alan

Good call, I read your other posts and after my own research concurred and bought in yesterday morning.

Thanks

My pleasure UKR. Hope we're both right then!!
Alan

Ticking up nicely and looks if it is about to run again. At some point these might be taken over by one of the bigger boys. All the buys so far look smallish and are probably retail investors, with no sign yet of the big boys getting in yet. I will continue to hold mine hoping for 450p early in the new year. IMO, just north of 500p looks the ultimate top, except we get some takeover activity. H

Hi H.
Right at the begining I expected the high 400's by feb,
Seen nothing to change my mind, but will probably cash in, in feb anyway, regardless of price, just expecting the same as previous years.
Alan

Alan, nice move today with good news from the update. High 400's by Feb looks conservative at the moment given the prospect of increased number of plots next year and consolidation in the sector. Pity it isn't going ex-div early in the new year to scoop that up also. H

Well, back from some very crappy hols and delighted with the pre close statement and the move north on it. This co do have a habit of conservative interims followed by very good finals, and this keeps reflecting in the way the sp moves through the year.
If the increased land bank is financed by profit, I stay in regardless. If the increase is financed by higher gearing, then I still think divi day is a good time to get out and buy back in at a lower price through the late summer, but I will take a final view when i see the finals.
A fiver would be nice, H, as it would make this a ten bagger for me and those are few and far between, even if it has taken a good few years since my original buy. I have never sold a single share in these, and it will take absolute certainty of a fall for me to sell, as the divi is so good (30% of my original stake), but if the finals are in our favour and the sector consolidation does continue, then there is still another 20-30% in these by spring. heres hoping!!
Alan

Up another 10p today, on low volumes. Buys outstripped sells and closed on a session high.
Gotta be happy with that. It bodes well for the next couple of days, (I hope).
Alan

Been having another look at the historical charts.
Now I keep banging on about the graph apparantly repeating itself (a bit like me) but the 50 DMA rose above the 200 DMA (Golden cross?) on the first trading day of 2005. The exact same thing happened today! (Spooky, Eh?)
In 2005 the sp stayed above the 50 DMA for just over 3 months on a trend that saw a rise topping out at 20% between 01/01 and 01/03.
Right, putting my Mystic Meg hat on, I think the trend will be almost identical this year and the sp will top out on finals day, around 01/03/2006, at about 556p.
I stand to be shot down but the last two months have seen almost exactly the same trend in 2005 as we saw in 2004. Will it continue?
As always, IMO & DYOR
Alan

Al
Reading with interest, now you read my ert its only fare.

Im interested too and might get in 2morrow. Also tipped by shares mag last year followed by an initial big rise. Not in the tips this years but still a very positive write up on last years effort and expect the step foward this year. Could always be a target for a bigger fish too. looks good.

Alan, agree north of 500p is a reasonable expectation in the time frame you mention barring any bid. Do you find out how they increased their land bank, through debt? Early March will miss the divy but a good capital gain likely H

H,
Think it unlikely that they have increased their land bank through extra borrowing as BBC seem, by nature to be fairly cautious. Think it even more unlikely they would tell me if they had as they are now in their closed period (I think).
Alan

Yep. It boded well!
Up 7.5p without any trading. Hope it continues.
Alan

Just thought I would add the chart from start of the thread to now, for no other reason than it makes me feel good!!!

" alt="" />

And then I've got the damn thing wrong!!
Never mind. Up 30% in 2 months.

Up 11p at the moment, although a lot of sells are coming through now. The chart is coming up to a congested area now and may stall for a while before it moves on and up. Still hoping for mid 500s, H

H,
You'll have to give me a few charting lessons, I'm afraid. Had a look at the last two years, and I'm confused by your comment. (I think you're right, I'm just confused by the charting position!!!).
The mid 470's seems to be associated with peaks before a fall, troughs before a rise, or a flashed by price during a bull or bear run. But not with stagnation.
As I said, I've more chance of understanding Homer in the original latin (Joke alert everyone - I'm not THAT stupid) than understanding a chart, but I do try to learn from those who know.
Thanks
Alan

Alan, neither am I a chartist and you are right the mid 470s seem to be an event line where things often happen. I didn't mean stagnation, I meant stalling on its rise, ie bouncing around this area several times before continuing (hopefully) with the uptrend. H

The Tempus column, this morning, rates 4 house builders as worth buying. BBC isn't one of them, but it does display confidence in the sector, and I don't understand why BBC is overlooked all the time.
Its just like the opening paragraph of this thread. Based on the fundamentals, if these 4 are worth buying, BBC must be that plus a bit!!
Alan

Alan - See KIE did not get a mention either, although not a pure housebuilding play.Don't think we will go far wrong with either of them, but in this sector you never know!

Alan - you may have led for a while, but KIE now some lengths in front!

Feb is my big month ;-)

BBc is rated as a bargain company of 2006 in todays IC.
They took their bloody time. I was saying that months ago!!!
;-)
Alan

And Bellway have reported the housing market being much better resulting in them having a record order book!!!

Is anyone interested in Galliford Try. They seem to be flagging.

Evidence that the Uk market is picking up rapidly.
Results out in 2 weeks.
M & A rumours in this sector.
February traditionally the best month for BBC shares.
100,000 share broker to broker deal just gone through.
Might be an interesting week or two ahead.
Alan

Another 25k broker to broker trade today.
Ain't got a clue whether its significant, and if it is, what it signifies, but its interesting me.
Any ideas anyone?
Alan

Results a bit uninspiring and debt remains high. Still could be attractive to a predator, but also still prefer KIE!

Don't.
I'm sat here so disappointed this morning :-(
The P/E is still too low, but the SP means the market doesn't like it.
Still, and always will be a multi bagger for me, I got in so early, and the divi is great cos I get 15p for shares that cost me 50p each, but I still think its worth a fiver plus.
Never mind. Back to other depressing results on my holdings.
I'm having a bad day!!!!
Alan

Keep smiling al... you would think these would come good in the end... you should have bought some bnh ;-)

I have one for ya mate that is worth looking at - tgp - on a p/e of less than 5. Results out within next 2 weeks.... a very undiscovered story...

Al
CCT, MDY

I keep talking to myself on here Al check out ALY for your retail recovery stock.

Willco, over & out.

Director buying today. 3000 @ 412p.
Good sign.

Same guy, another 1900 today at 427p.

Hi al, hope your well mate.

I am back at Rothwell Athletic this year...

Did you buy any of those BNH - they have had a good run - i sold mine at 184 after paying 61p, i am quite happy with my return!

I have reduced my equity holdings as I think things are a bit shaky at the mo, however, I have recently bought DDC - they pay a yield of 6% forecasting to pay 10% and I believe there is plenty of upside in sp yet... have a look at them:

They are essentially a eastern europe property fund. they are 1 to buy (have 90p in cash) and own 6 shopping centres on top of the cash!!

Chairman bought 17k shares at 1.07 recently, and it seems other directors have been buying as many as they can sub 1... a few million i recall.

Let us know what you think

Legend

Sounds like a good 'un, leggy.
I was a little sceptical of BNH, as you know, but I was very happy to be proven wrong. Just as a note of caution, the FSA have stopped several companies similar to BNH from taking any new business as they have real concerns over the compliance regimes being operated. The FSA will not name names but I don't believe BNH is one. But it does show how vulnerable this type of business is to the whims of the regulator.
I had DDC flagged up to me some time ago and I decided against them then, as they really don't fit my portfolio strategy. I am not anti them at all, but I am fairly heavy in property at the moment and I am still cautious about anything eastern european. After a few disasters last year, i have moved a very large percentage of my portfolio into FTSE blue chips and mid caps, and the remainder is doing sterling service in CSB, SEO, HYC and a few others.
Will be at Rothwell tomorrow, playing cricket against Glasshoughton, and no doubt we will unknowingly bump into each other as your season starts and mine ends.
Good luck with BNH and DDC.
Alan

News on BBC.
Stephen North has retired as director. Funnily enough this was the guy who was buying stock the other day at 424p.

Its almost that time of year again to check out them there charts.
Every year seems to see this one go on a climb for the last few months of the year. Its starting the 2006 climb season from a much stronger price than usual, but this cloud on the predictability seems to be because there has been director buying up to 424p.
20-30% in the last few months of the year is fairly common and as the results in the building sector start to come in, we may see it again this year.
As i keep saying, I am no chartist, but this is an perrenial of mine that seems to be strangely predictable.
You watch, that is the kiss of death for BBC.
Alan

Up almost 10% (at time of writing) since the last post and there seems to be a golden cross approaching.
Nice.

Golden cross takes place today (barring any disasters).

Hi al, great to see these motoring along.

bet your glad you still hold these huh??

am back at rothwell a this year, we've made a great start to season.

Good to hear it, leggy.
We won promotion from the 3rd division at the first try so that was fantastic. Went to the very last match, which we ended up playing in almost total darkness!!
Very happy to still be in these. Divi up, and quietly making money for me. best kind of share to own. I just regret not having more balls when I first bought them, cos at a fiver a share they are officially a ten bagger!!!
Good luck for the season. Lets put Rothwell on the sporting map.
Alan

Speaking to someone in the property business yesterday. They did not know of my holding in BBC and they mentioned them as a likely takeover target. He reasoned that the landbank now possessed by BBC was attractive to companies of the size of Persimmon as a way to grow quickly as sourcing suitable development land was becoming just too difficult and expensive to do.
His rationale was simple. Companies like Persimmon need to buy more land than they use each year, in order to grow. A builder that sells (eg) 2000 plots needs 2001+ that year. Getting that much land with planning permissions is getting almost impossible, so the route left is to buy a company that owns an existing landbank. The premium for a going concern is worth it as it saves massive amounts of money in the sourcing, applying and bidding. Further it eradicates a competitor in the bidding process so keeping the eventual tender price for such land down.
The logic works to some degree, and he is in that very arena. It will be interesting to see if an M&A frenzy does break out, and who are the targets.
Alan

Back up at a fiver again, and little trading.
Heres hoping the run up to the pre close statement continues this well.

Back after a few weeks away and, yes, the run up has continued that well!!!
Five and a half and counting. Someone somewhere expects a good pre close statement next week.
Alan

Agree, the statement should be good, based on the sound housing market and growth of number of BBC's plots.

Recent run up in share price may be due to speculation spilling over from the WLB situation. Having said that, market cap. is still too low, imho. Holding tightly onto mine.

Go, Go, BBC!!!

I am not sure whether this has been posted or not.

But question if the share price is to low why arn't many buying them?



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Bellway PLC
16 November 2006


BELLWAY p.l.c.

BARKING REACH UPDATE


Bellway p.l.c. is delighted with the decision from the Planning Committee of
Barking and Dagenham Council, made on 15th November 2006, that it has passed a
resolution to grant planning permission for Barking Riverside Limited to develop
a 180 hectare site at Barking Reach in the Thames Gateway. The permission is
subject to confirmation from the Mayor of London and the Secretary of State for
the Department for Communities and Local Government.



Barking Riverside Limited. is a joint venture between Bellway p.l.c. and English
Partnerships and is set to become one of the largest regeneration projects in
the U.K. The resolution to grant paves the way for the development of a new
mixed use community in east London comprising 10,800 homes, of which
approximately 50% will be solely developed by Bellway, together with schools,
community facilities and enhanced transport links, including ultimately an
extension to the Docklands Light Railway.



The proposals will now progress through to the next stage of the planning
process and once all permissions have been secured it is hoped that development
will start in 2008.



For further information contact John Watson or Alistair Leitch on 0191 2170717.





Ends




This information is provided by RNS
The company news service from the London Stock Exchange





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2006 MoneyAM

Something has lit a fire under this today.

Al
Nice rise, when you said bbc I went and bought ITV !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I buy the "Red Hot Adult Channel" every month, Driver.

Al
I don't need to, I go to bed with one every night then go to work worn out the next day. Wouldn't it be nice just to watch a bit of BBC.

This is one long running reality that I have seriously enjoyed!!!

Its been a very good run recently.
I believe the pre close statement is due tomorrow, so lets see if we can break that 6 barrier.

You have email.

And I thank you for it.
I am returning one soon.
Alan

Half right, half wrong.
No pre-close statement today, but 6 well and truly breached.

Last possible day for a pre close statement and no sign of one.
Read into that whatever you will, but its been a good year with a very strong finish.
Dead happy.
Alan

al, well done mate, seems like you have had a good year.

I have bought some fum over the last week or so.

Defo worth a look imho.

Happy new year and good luck for 07 ;-)

And to you, Leggy.
I've only had one little flutter over the last few weeks.
Have a squint at PDR. Not everyones cup of Assam, but I fancy it!!
Alan

Anyone heard any news on a potential takeover bid? I presume the interest rate increase had an impact today?!!!
Simon

I've heard none, Simon. These are a notoriously tight lipped company but they have done very well for me over the years so I aint complaining.
And yes, the rate rise shocked it down a bit but I fancy it will still do well. Traditionally, if you like to trade, March is a good time to sell these and October to get back in, so expect a drop over the summer.
Alan

Should I be keeping hold or selling? Big drop today for some reason?
Thanks

Don't know is the short answer!!
They usually start to fall on results day and then pick up late in the year, so this is a bit early.
I think its just a general malaise on Interest rates and inflation fears.
Alan

Twas a nasty correction, but it seems to have bottomed and be going in the right direction again.
Alan

Went well today. Anticipation of good results? Or, sector consolidation hopes?

Either way, not grumbling.

A good week in fact (so far).
I think it will trace its historically predictable path of peaking around results day and the gently heading south for the summer, but the chart (to a non chartist like me) suggests differently.
Alan

?

Strategic review = could sell itself.

Or an MBO (unlikely).
Bring it on.................

I don't see an MBO, either.

My view; very likely accept a bid.

WMPY are looking for acquisitions.

Alan - well done on this - I have watched this since you mentioned it at about 3 - and I always thought it was due a correction, too good to be true and I just knew that as soon as I invested it would go down - so I never actually took the plunge.

Well done you - u always said it had legs - and so it seems

Baza

Thanks Baza. You know the story on this. I am actually emotionally attached to this as the first stock I ever bought at the princely sum of 50p, but at the 3 stage it really was way undervalued.
alan

Current EPS are 74.5p (2005). If we assume this years results next week show similar (and why not) what kind of multiple do we think would be reasonable as a for sale figure?
Currently trading at about 9 and a half PE ratio, this still looks a tempting buy for a private equity group and the increase in land bank over the last couple of years may tempt the Wimpeys and Barrats of this world.
Anyone fancy a guess at a "for sale" figure??
alan

My guess: 800p.

Results out today are encouraging without setting the world alight.
3 days earlier than expected.
Alan

Like some of the other smaller housebuilders, BBC has been feeling somewhat greater cost pressures than those of the bigger builders.

The train is in motion. I expect we'll soon see a formal statement that BBC is open to offers.

The market for housing plots is very competitive and should secure a buyer for BBC.

Agreed. And to be fair I was told this may happen some months ago. I even posted it on here!!
The increase in land bank that they borowed to finance now makes perfect sense and looks astute. Not huge by any means, but it makes it worth more and a more attractive proposition for both existing builders and private equity.
Alan

Hint of rose tinted spectacles...opposite view could be that they are underperforming the competition and overgeared. Just needs interest rates to rise sharply, house prices to fall and if no buyer by then watch out as land values sink, at least in the short term. Your scenario more likely (and really just envious as I never did buy, but KIE have hardly been a slouch!) but don't get carried away with emotion.

KIE has been an excellent investment, and so has BBC. Commentary from the bigger players suggests that there is a steady market for new housing overall in the UK. Half a dozen UK housebuilders would want to add 3000-ish plots to their banks. Perhaps with a touch of irony, I would place KIE amongst those who might be interested. Also, Miller may take a tilt, and may use BBC to get a listing. The big listed housebuilders are also obvious candidates.

Yes, rose tinted spectacles and there's many a slip .... some caution needed but I still think BBC will put itself up for sale and will accept the best bid. I've guessed at 800 p to give a premium to shareholders and give some margin for the buyer. I've seen 850p mentioned, but who knows? Even if it's 750p plus the final dividend I won't be complaining.

I refer the right honourable gentlemen to post 93 of this thread.
Alan

hewittalan6, yes, re-read your post 93 - good one. The writing has been on the wall for while but, as ever, it becomes clearer with hindsight.

Stormy times over the last week or so (in common with everyone else), but yesterday saw huge volume and the majority of it was broker to broker trades.
Today the volume is more subdued but seems to be a fair bit of market maker trades.
Wonder if this is significant.
Alan

All the M&A activity in this sector is doing BBC no harm at all.
If you are going to put yourself up for sale, now is a damn good time to do it!!
Alan

Is something brewing at BBC?

LONDON (Thomson Financial) - Real estate company Town Centre Securities PLC said it bought 10,000 shares for 659 pence each and 100,000 shares for 655 pence apiece of UK-based real estate developer Ben Bailey PLC, raising its stake to 400,000 share or about 3.34 pct from 2.42 pct in the company.

Recommended cash bid of 700p in today.
Thought it would be a bit more.
Alan

well done alan - 50p to 700 - not a bad littlr investment

I eventually dipped my toe in the water at about 640 - so cannot complain

So what do you recommend as your next 10 bagger - and please dont saY sTANELCO !!!!!

About 60 years in a building society account, Baza ;-)
Alan