Taylor Wimpey EPS>Cash Flow ps

12th Jun '20 by YorkshireBorn

2 comments 267 reads

Hi,

Been looking at TW - it ticks a lot of boxes for me, as a long term investment - but concerned about persistent EPS>Cash Flow ps - mindful of Edward Croft's warning about this - have looked at Cash Flow and Balance Sheets for all years and there seems to be a variety of reasons with no specific pattern - adjustment for pension deficits seems to be the only standout here - but surely if such adjustment should be charged against earnings too?

Has anyone else looked at this and spotted anything I'm missing? All comments welcome.

Ian

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UK_Investor_8888

12th Jun '20

There's a modest Short position steaming on TW's lawn:-

https://shorttracker.co.uk/company/GB0008782301/

If the economy booms, TW should be back to normal. If the economy contracts and there is a deep recession or severe pull back of house prices (demand), then TW could suffer a major Asset Impairment charge.

I sold my Taylor Wimpey (LON:TW.) @150p in a handsome profit to buy International Personal Finance (LON:IPF) @ 40.5p (big grin).

Which way is this recession going to go?

YorkshireBorn

Thanks for this - shorting TW seems a little bold - I do take your point though, how will the recession affect the builders? Might take a peek at IPF methinks.

Taylor Wimpey EPS>Cash Flow ps

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YorkshireBorn

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