I bought into Taylor Wimpey Plc (LON:TW.) recently. That was despite current market sentiment which I feel has been overdone. TW has far greater assets than current debt. Debt is about £2bn and assets about £4bn. Okay so assets are falling and lets take a worse case in the next year of 25% we still end up with about £1bn assets for a company with a mkt cap of £100m currently.

Okay so the current panic is meeting banking covenents in the near term. This saw AXA sell off a huge position and force the price down to 4p silly really but they panicked. Barratts pulled off a refinancing and I see no reason why TW. should not do so. I took advantage of the sell off to buy it was a 25% gamble but worth having a go at. Yesterdays news of a leaked email confirming that all was not lost and negotiations were going well saw the price rise 7%.

I feel this could be a 5 bagger in the short term and perhaps a ten bagger in a year? But who knows.

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