Here is an update I wrote recently on Compound Income as the shares are up by around 50% a year on from my original post. One line summary is that they still look good value, but maybe I wouldn't be chasing them up here given the recent steep rise. Original post from April 2014 appears below this update.
Bellway - (BWY) the UK house builder announced bumper
interim profits as they had already flagged in a prior trading
update that they would see strong trading results which would be
weighted towards the first half. So rather than reproduce lots of big %
gain numbers like the 56.1% rise in earnings I'll leave you to read the announcement
if it is of interest. Of interest to me was the fact that the dividend
was also up by 56.3% to 25 pence. They suggested they would continue
with "The payment of a progressive dividend, together
with the growth in net asset value, is delivering long term,
sustainable returns for shareholders."
So given that they
already told us that the results were going to be first half weighted
what does this leave them to do in the second half? Well last year they
made 89.9p of earnings in H2 and they have just reported 103.5p in H1
this year. So looking at forecast of 210.2p for the full year (Source:
Stockopedia) this leaves them 106.7p to do in the second half or growth
of 18.7% in H2, which doesn't seem too demanding against the growth just
reported.
However, I guess we have had some signs of a slow
down in the housing market and with the General Election to come this
could impact them. But talking of politics each party seems to be trying
to out do the other in terms of the number of house they are planning
to build - although I'm not quite clear how they are going to do that?
Plus the latest scheme from the Chancellor George Osborne
to provide help to buy ISA's with tax relief on top might eventually
help (house prices) at the margin, but surely increasing supply and
bringing prices down would be better for those looking to get on the
debt treadmill, but then falling house prices presumably don't help win
elections.
Any way I digress, getting back to the point, it seems
Mr.…
