REACT Group – states “pleased to have delivered another period of good progress”… but it’s behind expectations!
Filtronic – argues “healthy improvement… in line with internal forecasts”, but what does that mean financially?...
5.5p to 2.5p in 9 working days- the Vast Resources shitshow in full swing with ANOTHER bailout placing
Hello Share Tasters. The house building sector is perky. And that’s jolly news for Ibstock (IBST), the leading Leicester company that makes bricks. Trouble is raw materials are getting more expensive and transport costs are going up. However, if the house building market continues to strengthen, then customers for bricks aren’t going to mind paying extra.
The last time that I wrote positively about Ibstock (IBST) - the UK’s largest brick company - was here - back in April. Back then I concluded that ‘assuming further recovery in key sales/profit metrics to closer to the 2019 levels as 2021 progresses. And fair value is still above 250 pence’, which still suggests today a nice 10%+ increase potential in the share price.
Whilst my positive views on the UK’s largest brick company Ibstock (IBST) - most recently written up HERE - have been really well-rewarded over the last six months, I do have one confession to make. Yes, the company did make a loss of £20 million last year. It was clearly a very difficult year due to Covid-19 shutdowns but also Ibstock was taking on board one off costs to help evolve the business. Still, I know some investors will be feeling unhappy.
It has taken me an extra day to respond but did you see the update from the market share leading clay and concrete building company Ibstock (IBST)? Although the full results are out in early March, the company said it expects to report adjusted EBITDA for 2020 of around the previous guidance (back in October) of £50 million. I know this puts the company on a x20 EV multiple, the reality is that it is talking even more positively about 2021 as the CEO notes that 'we are encouraged by recent market trends in the industry and the resilience of demand from our house builder'.
I've mentioned brick company Ibstock (IBST) a few times on these pages, noting here that 'I love basic, but worthy, products' especially if they have pricing power due to a supply oligopoly, as you should note with this space. I see on a shabby day for the broader market that Ibstock shares are once again close to the 150s pence level I have used a couple of times to add to my holding, which is kind of interesting especially as the company's trading update released today read well in my view. So what did it say?...
You know I love basic, but worthy, products and have rhapsodised about the brick market before as pricing power is decent, assisted by a continuing structural demand for houses due to a rising population (don't get me started though on housebuilder profitability levels and 'help to buy' style market distortions!). However...
This may surprise a few people given my pessimism on the housing market and the housebuilding sector but I am not bricking it about the world of bricks. Now maybe it is because I am a sentimental old fool who lives near an area whose heritage is wrapped up in the world of bricks, but my simple observation is...
Hello Share Trudgers. There’s been talk of a collapse in property prices on this august website. As I’ve often posited, I consider this too dire a view of the bricks and mortar game.
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