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Ashstead: Building My Hopes with the Builders.

By Malcolm Stacey | Friday 28 March 2014

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 Seekers: I've had a spiffing thought. House building firms and those who supply them may see some tasty rises in their share price in the next few months.

Because banks have not been lending money to mortgage seekers, builders have been suffering. They have not been erecting enough houses as a result.

So we now have a desperate house and flat shortage. And when demand outstrips supply – wow!

The Government has at last woken up to this dire situation. They have an easy-to-buy scheme up and running, which makes banks more amenable to lending the money. It's doing so well that we already have a new house boom.

The government is also going to set up the first new town for donkey's years. Loads of new homes needed there.

This means builders should boom. Some of the first evidence comes from B & Q who are owned by Kingfisher (KGF). They have seen a jolly rise in business. They supply building materials and stuff to amateurs to do their own building, extensions and decorations.

Another good sign is that share price of Ashtead (AHT) keeps on rising. For me it is a four bagger, for those who got in earlier it is almost a ten bagger. Ashtead hire out building tools and plant.

It won't be long before British builders see their share prices take off. They've been held down a long time and the impetuous is well, building.

I think I will take my money out of a few less likely winners – like hotel chains and pubs – and try builders and estate agents instead. Well, maybe not this week, but soon enough.

While I'm glad they've already built the Punter's Return.

Malcolm Stacey has been writing about shares for more than 20 years. His first book "The Armchair Tycoon" was first published in 1998 but a revised 2014 e-version is now available. To obtain a FREE copy fill in the form HERE

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