Housebuilder shares - Runts of the litter

Procrastinator333

While housebuilding shares jumped a bit on news of the budget not quite being as bad as had been possible, they are clearly amongst the runt of the FTSE 250 litter.

In the last 12 months the FTSE 250 has risen from 7200 to 9900, a 37.5% rise.

Compare that to the housebuilders over the last 12 months:

Barrat, 95 to 109 - 14.8% rise
Persimmon, 350 to 385 - 10% rise
TW, 33 to 32 - A 3% fall

On their own, these rises look ok, but when taken in the context of an index that has risen 37.5% they are pretty dire. If anyone else can be bothered to look it up, please do, but they must be amongst the worst performing shares in the FTSE 250.

Not exactly a vote of confidence in the house building market.

Really2

Procrastinator333 wrote: »

While housebuilding shares jumped a bit on news of the budget not quite being as bad as had been possible, they are clearly amongst the runt of the FTSE 250 litter.

In the last 12 months the FTSE 250 has risen from 7200 to 9900, a 37.5% rise.

Compare that to the housebuilders over the last 12 months:

Barrat, 95 to 109 - 14.8% rise
Persimmon, 350 to 385 - 10% rise
TW, 33 to 32 - A 3% fall

On their own, these rises look ok, but when taken in the context of an index that has risen 37.5% they are pretty dire. If anyone else can be bothered to look it up, please do, but they must be amongst the worst performing shares in the FTSE 250.

Not exactly a vote of confidence in the house building market.

I remember when TW was 4p in 2008, I would be reasonably happy it was 825% higher than that had I invested in just over 18 months.

Blacklight

Given all the BS people have spewed since 2007 about living in a post apocalyptic world where the streets are stained in blood, cars burn and houses are 3.5x average wages; I'm happy with the fact that they're still trading.

It's interesting how the fact that we haven't seen a 50% crash in the market has turned into "omfg only a 10% rise in house prices!" or "lulz housbuilders shares only up 15%!!!111".

I didn't anticipate anything rising quite as quickly as it has following the worst financial crisis in living memory.

Dirk_Rambo

Really2 wrote: »

I remember when TW was 4p in 2008, I would be reasonably happy it was 825% higher than that had I invested in just over 18 months.

how many people bought at 4 pence though. I'll give you a clue - sod all. housebuilding shares have been a tragic investment in recent years. much better if youd invested in gold and silver, you can't go wrong there.

princeofpounds

But wait! Houses are almost as expensive as they were at the peak! That's a fact! So these guys must be able to sell their stock at premium prices!

.... something doesn't seem quite right, does it?.....

Maybe the market is telling us something.

Really2

Dirk_Rambo wrote: »

how many people bought at 4 pence though. I'll give you a clue - sod all. housebuilding shares have been a tragic investment in recent years. much better if youd invested in gold and silver, you can't go wrong there.

Care to prove that? I know someone who purchased 100,000.

I even said on here around the time they looked good for a gamble.

If no one purchased them why where they 4p?

Dirk_Rambo

they were 4p because it's close to zero pence, that is nobody wanted them.
silver is where the real shrewd investors are imo, fill yer boots

Really2

Dirk_Rambo wrote: »

they were 4p because it's close to zero pence, that is nobody wanted them.
silver is where the real shrewd investors are imo, fill yer boots

They were 4p because that is what they were traded at so your comment no one purchased them was foolish.

If no one had purchased at 4p they would not be 4p.

Has silver gone up 825% in 18 months. I believe TW went to near 60p in that time 1500% increase.

But you seem to need to ramp silver so we know where your cash is.

chucky

Procrastinator333 wrote: »

Not exactly a vote of confidence in the house building market.

i'd love you to be able to explain why not...

can you include company capitilisation, yields, EPS, PE Ratios and even current turnover of these companies when you try to explain you're statement that you've just derived from a share price...

1984ReturnsForReal_2

This is one of the best things about this board...

There is always someone to give a little bit of [STRIKE]balance[/STRIKE] perspective to Hamish........

Procrastinator333

Really2 wrote: »

I remember when TW was 4p in 2008, I would be reasonably happy it was 825% higher than that had I invested in just over 18 months.

If you pick the right time frame, It wouldn't surprise me if every single share outperforms the index it is in. Great.

I have just found this on Yahoo finance. Great for illustrating the point of this thread.

http://uk.finance.yahoo.com/echarts?s=TW.L#chart2:symbol=tw.l;range=5y;compare=^ftmc;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Pull up each respective share, then use the comparison to see how they have all done over the last 5 years compared to the FTSE 250

They are dire.

I'm not posting this with the suggestion this indiciates house prices are going to fall or crash etc etc. Simply as a bit of reality to compare with other threads that give a totally manipulated view.