11:30 10/03/2017 Re: Does this ever move?
Afrosia Can't remember who said it [ I have a life outside of this :) ] But to paraphrase - a company should only return money to shareholders as dividends when it can't make a better return for them by re-investing in the business. Yes, I like dividends and income, but prefer a better total return. That is what I have had from BREE over the years and expect to continue for some time yet. PE
10:48 10/03/2017 Re: Does this ever move?
Pie-eater, If you read my comment carefully you will see that I postulated a dividend of some 50% of available profits, i.e. 2X covered, as a reasonable possibility and suggested that this level of dividend was insufficient to support a share price of 80p. It is immaterial to me as I have converted #5,000 into #35,000 so am happy someone is willing to buy at this price. I was not.
10:36 10/03/2017 Re: Does this ever move?
Using Cher?s definition, Berkshire Hathaway is a Ponzi scheme. A company should only be paying a dividend if it doesn?t have sufficiently attractive reinvestment opportunities, whether those are internal or external. So far Breedon has demonstrated itself to be an adept capital allocator and one that I trust to either reinvest internally or acquire other businesses. It could also be argued that a company that retains more capital, and is able to earn strong returns on capital, should be expected to have a higher earnings multiple, since the net present value of retained earnings is higher than the value of a dividend.
9:45 10/03/2017 shore capital....
upgrades from hold to buy .
8:34 10/03/2017 Re: Does this ever move?
Cher, You have you opinion and you may or may not be correct. (What was the difference with, for example Facebook in the US where no profits were made for years...and also more recently Snapchat - neither of which I hold directly but almost certainly via US ETFs) Just because a company re-invests it's cash-flow into further growth opportunities doesn't make it a Ponzi. As far as I can tell virtually all companies re-invest for growth and then as that reduces then the profits are increasingly paid in divid as the company matures. BUT The question was, basically where is the divi that you stated gave you the yield? As far as I can see there isn't one. Am I correct on that or are you? PE
8:21 10/03/2017 Re: Does this ever move?
Pie Eater, Without a dividend or a planned liquidation a company like Breedon is akin to a giant Ponzi scam. It is only supportable if new mugs appear to buy the shares as a reward is only obtained by selling. My point was that the profits do not support the present share price.
11:06 08/03/2017 Re: Does this ever move?
Retardation mostly...
10:22 08/03/2017 Re: Does this ever move?
CHER, Sorry, must be going blind....where is the 1.5p divi? Company has always re-invested profits and as I read it will continue to do so.....while constantly reviewing options. PE
10:00 08/03/2017 Re: Does this ever move?
so why the Sell flag then Afrosia?
9:56 08/03/2017 Full Year Resuts
Yes they are great numbers and their future might lie in today?s budget. If the Govt commits to a serious infrastructure spend as expected and keeps talking up the housing market especially, then Breedon is a very strong hold in my view. Today's podcast was worth listening to and the year ahead is looking good, Let's hope the Chancellor gives the building trade a leg up!
9:37 08/03/2017 Re: Does this ever move?
Net debt is #160m versus an equity value of #1,100 and balance sheet net assets of #470m. Leverage calculated as total assets / net assets is 1.7x. I wouldn't describe this as mountainous debt or unsustainable. They are generating enough cashflow to pay it down in just over two years. The earnings multiple is around 23x. Hefty, yes, but potentially justified given the history. I wouldn't place this into "sell" territory yet.
9:19 08/03/2017 Re: Does this ever move?
A third day of 2p increases! How much longer before sanity prevails. EPS of just over 3p does not really support an 80p share price with a possible dividend of 1 1/2p giving a yield of 1.8% and a mountain of debt to service. For several years this share has been a "parking lot" for my surplus cash - originally 12p a share so I have done very well with a gain of nearly 600%. I am out at 80p
9:09 08/03/2017 Re: Does this ever move?
A third day of 2p increases! How much longer before sanity prevails. EPS of just over 3p does not really support an 80p share price with a possible dividend of 1 1/2p giving a yield of 1.8% and a mountain of debt to service. For several years this share has been a "parking lot" for my surplus cash - originally 12p a share so I have done very well with a gain of nearly 600%. I am out at 80p.
15:59 07/03/2017 Re: Does this ever move?
Prelims tomorrow, I believe, Cher, which should be good, along with the chance of a maiden dividend being announced after a few months of them getting into the Hope business. This will be a good move for BREE in getting into the divd list (many investment funds are precluded from buying non - yielders) as I alluded to before and it'll show that the integration of the recent acquisitions is going well. Sudden demand for the shs bodes well - sasa.
15:28 07/03/2017 Re: Does this ever move?
Another 2p uptick today. Over 80p by Friday? What is causing this steep rise? Any answers, anyone.