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

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.