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

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!!!

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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!