By Malcolm Stacey | Friday 10 March 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Trenders. I’m about 10% in cash at the mo. It’s out of the ordinary for me to have so much money not in shares, but even raving optimists have to take a bit of notice of the gloomsters who heavily outnumber me - many of which write on this glittering website. However, I have spent some of my cash reserve recently on shares in three companies in the house building game. You’ve probably read me being boringly bullish about this sector over the last year.
So let me name the happy trio of bricks and mortar firms that now have some of my hard-earned. The first is Berkeley Group (BKG). I’ve commended this feisty outfit to your further study in living memory. But I have never before held the stock myself.
However, the case seems strong. Berkeley specialises in building homes on brownfield sites. These are in built-up areas which are not always popular. However, as the housing shortage gets worse and government keeps banging on about helping builders to create affordable homes, Berkeley seem to be in an area which is likely to boom.
My other builder is another of my favourites Galliford Try (GFRD). I already had shares in this company. And now I’ve doubled my holding. The share would have to fall quite a lot for me not be in profit, so it seems to be worth an additional punt. It builds mostly in the South East and while that region’s house prices are too high, I can only see that leading to higher profits for local builders.
Choice number three is another newcomer to my portfolio - Carillion (CLLN). This is not a house builder, but a commercial and public services builder and engineer, doing schools, roads and rail and the like, as well as servicing them afterwards. In just a few days, my new shares have already made me a few hundred quid.
You’ll remember that the budget gave away millions for road building in the North and Midlands. But I was disappointed that there was nothing this time about encouraging new homes. However, Whitehall has been bleating on about various schemes to encourage house builders and it’s likely that the campaign for more affordable homes will continue.
Therefore I’m quite happy to add all these building shares to my bag, even though Uncle Tom has contradicted me from time to time.
And now it's time to build my strength in the Punter’s Return.
Never miss a story.
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