Persimmon - PSN - Share chat

Hi @Cargo7

Welcome welcome welcome :ocean:

This is probably a good piece to read if you want to polish up you’re knowledge.

Why are persimmon tanking so hard?
I’m £600 down in a month!!!
Has something happened?

It looks like that sector is taking a dive. Taylor Wimpey and Barratt also tanking.

Inflation and cladding causing hyperthetical problems I think. Whether it will actually be a problem yet to be seen. I’m still topping up my TW

Inflation is the biggest reason. If borrowing is more expensive people will buy less homes or can afford less.


But “expensive” is all relative. Some of us can remember 15% mortgage rates - limiting the supermaket shop to sell-by date reductions to keep in the black - those were the days. We are nowhere near. And won’t be even in Dec or Mar 2023. So PSN’s fundamentals are worth a look at - I think they are quite ok but the price has only got 7% more to fall (from - 13%) before I’ll have to stop loss.

Oh completely but relative in this context relates to the price in the memory of investors and in the finically projections of the company. I’m in my 30’s but my first mortgage was 7.49%.

I own a few house builders but regardless of its performance don’t / won’t own Persimmon. They are the cheap nasty builder people think of when they’re imagining the worst of the industry

Am I correct in saying that if a share price drops off on a whim but the fundamentals are still ok, that buying Persimmon cheap, means you get are getting a higher percentage dividend at a lower price? :moneybag:

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The dividend is paid in £/p but an easy way of comparing across companies is to divide it by the current share price. So in a way yes your theory is right.

In your own holdings you could calculate a ‘personal yield’ which would be the dividend amount / average buy in price.

The other thing just to be aware of is that the dividend yield in the app is a backwards looking metric. If a company hasn’t announced a dividend it’ll use the last one, this may not always be in line with future payments (for good and bad)


Thank you @NeilB Yes, makes sense.


“I own a few house builders but regardless of its performance don’t / won’t own Persimmon” - Hmm. Financial performance is (almost) everything. Ethics has a place - would I invest in slavery if it was legal? Or brothels? Totally not. In the final analysis the role of the capitalist is to maximise his/her return on capital. Appreciate this won’t play well to a lot of 30 somethings. I’m in my 60s and we grew up in harder-nosed times, albeit with free university tuition! PSN up 2% so far today. Long may that continue.

For really full-on ethical crowdfunding, try Ethical Crowdfunding Investments | Triodos Bank ( 6% bond return on a current offering. (I’m not on commission!).

Hi @RogeroftheRaj just some background. I have worked in the industry for the better part of two decades now. I know on the front line the qualities I look for in my investments and this isn’t one. If you have any insights other than up 2% in a day then I’d love to hear them.

I didn’t bring age into this.

Going on previous post should be getting dividend payout coming through soon?

Payout date is 1st April 2022. Although expect it to appear a few days after in your brokerage account.

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Brill thanks for that.

If you’ve decided to pick a developer over buying a REIT or ETF then a few bigger ones to look at could be -

Redrow - FTSE250. Good quality builder with a nice product. Expanding their coverage with new regions so there is growth to be factored in.

Taylor Wimpey - Elliott have been very active with the changing of the old CEO and the new boss wasn’t their preferred candidate. They could continue to make a scene or go off quietly.

Barratts - My current employer. (I have a staff share save which means I’m getting shares for £4.32!) Good builder, volume but reasonable quality too.

Persimmon - I’m not a fan but that is mainly of what they build and how as opposed to the stock which has been a big performer.

The industry has to ween itself off low interest rates and help to buy this year. While prices have been have been rising so have building materials if prices plateaux and materials don’t the margins will come under pressure. To tackle building materials inflation the Bank of England will likely raise rates which reduces the amount people can borrow. I’m bullish on the future but the next 6-9 months could be interesting.


Thank you neil, much appreciated awnser

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Heck of a drop yesterday

It was yes. I noticed 8.00 yesterday it had dropped by £1.43, which I assumed was because of it being ex-dividend date (£1.10 dividend per share) but then compounded by the whole market which sunk like a stone! We’ll see when there is any recovery.


And interest rates rising affect the borrowing ability of their customers. Triple wave :ocean: :ocean: :ocean: