Small Cap Value Report (Thu 11 Jan 2024) - NGHT, TSTL, SPA, LORD, POLR, TRST, MER, XPP
Good morning from Paul amp; Graham!
Let's leave it there for today, before my elderly PC (or me!) blows a gasket!
Mid to large cap news so far this year strikes me as pretty good, which is encouraging for the overall economy, and hopefully smaller caps too - eg.
Larger housebuilders - are much higher share prices up with events now? -
Persimmon (LON:PSN) - y'day seemed surprisingly upbeat - reported FY 12/2023 completions (sales) ahead of expectations, albeit 33% down on 2022. Its outlook sees "highly uncertain" market conditions in 2024, but mortgage rates easing is already helping demand. Build costs moderating. Shares have risen 54% since late Oct 2023!
Taylor Wimpey (LON:TW.) - Today says FY 12/2023 operating profit at top end of guidance (£440-470m), which it says is in line with expectations. Uncertain market conditions, but improving mortgages outlook amp; enquiries. Order book is reduced. Planning system "extremely challenging" - slow. Build cost inflation almost gone, at 0-1% on new tenders, but 4% in H1 2024 due to time lag. Also trades in Spain, which I didn't know! Net cash £678m. Optimistic medium amp; long term, PSN said the same thing. Shares up 42% since late Oct 2023 low.
Big retailers - as...