Persimmon 🏚 🔨 - PSN

I’m pretty sure our new CFO upset a few shareholders with pulled dividends in his Aviva days.

Now just flipping junk half the price no divs what a waste of time

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Very accurate description unfortunately, sadly this being my largest holding and can’t sell until I’ve made up the loss :frowning:

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Not a big holding here but nonetheless, still too big a loss for me to swallow so will have to wait for a recovery.

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Re the two replies would you invest money in this company today rather than elsewhere? if your answer is no you should really go through your motivation to continue holding the shares and consider if selling and investing the money elsewhere isn’t a more sensible option.
There is no guarantee persimmion will ever reach the price it was and if it does it may take many years to do so, it is difficult to see housebuilders thriving again for a year or two possibly longer.

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Very valid point. It was something I bought at the beginning when I knew less and I bought it because it seemed to be a dependable company and reliable dividend payer. Now I know to buy individual stocks only in low quantities.

I would lose £1,270 if I sold now which is very painful! I’ll have a good think about what you have said.

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Don’t forget, given the lean times ahead, the main priority for the CEO/board is to the company through the lean period that’s coming.

Dividends might cause such a cash flow issue that may jeopardize the long term health of the company.

This is an example of why I think dividend investors are much better off buying equity income trusts.

With trusts, you won’t get as extreme price swings and they can continue paying out from reserves.

Some have steadily increased their dividends each year for decades:

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The majority of my dividend portfolio is in investment trusts and most continued to pay up during the pandemic when many companies cancelled their payments.

However, I played around with a Dogs of the FTSE portfolio (PSN was one of the ‘dogs’) so have a bunch of these individual shares, all mostly looking rather sorry for themselves right now! :laughing:

None of them are large holdings (range around £500-£1k) but still big enough that I don’t want to sell at a loss.

Generally, that’s true but not so for this investment trust I hold:

Still, it continues paying its monthly dividend :sweat_smile:

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It is difficult to get ones head around but what if they never get back to your even point? what if they lose even more value? I know it seems like you haven’t lost the money while you still hold the shares but in reality you have. You need to revaluate each share and if the the only reason you are holding it is to not crystalise the loss you need to consider if this is a sensible long term investment strategy.
I hope this doesn’t come across as overly critical it is just meant as a constructive other view point.

Hear what you’re saying and if these shares were a significant part of my portfolio, then yes, I would revaluate each one and think about a better long term strategy.

However, they make up less than 1% of my portfolio, only a bit of fun (though not so fun right now) and as I am no longer following the Dogs of the FTSE strategy (hold for one year and sell, whether profit or loss), I’ve decided to just hang onto them for now.

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Proof if needed, a manager on a building site today was telling me that tile delivery dates have dropped from 6 to 8 weeks or more 18 months ago to 2 to 3 days. Most sites here are scaling back and laying off temps etc. Our concrete deliveries have dropped off too, not as many footings etc to fill.

Decided to sell all mine this morning… not sure what to invest into tho. Any recommended penny stock ideas anyone ?

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Sold all mine today

Out of interest, what are you reinvesting in?

£TM1 - bringing my AVG down a bit

9% of mine :frowning:

Another very good point, I’ll consider over the weekend. Extremely painful but, you’re right, perhaps there comes a time to cut losses and put into an ETF with a good yield and ideally might increase in value more and quicker than Persimmon will.

Thank you, and this! This is one of the things I’ve learned over my investing journey which I wish I’d thought of at the beginning when I was seduced by the Persimmon shares!

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I think I’m in the same boat as everyone else nursing large losses. It’s my biggest investment as well seduced by the high dividend yield.

The advantage of Persimmon and most of the other house builders is they have no debt and are sitting on high value assets (land). If there’s no profit in building they will just stop. If that happens I fully expect the government to bring in incentives (I.e mortgage guarantees HTB or maybe even bring back MIRAS)

I don’t mind the cancelled dividend tbh. If that’s what it takes to see the company through this downturn then so be it. Persimmon will still be here and then a housing boom will begin again.

Keep calm and average down. If I’m wrong it’s been fun and I hope you didn’t bet the house (pun unintended) on it.

Wow they’ve shot down over the years haven’t they? I remember their shares looking decent at £18-20 two years back, when I looked them up as I bought one of their (terrible) houses haha.

Didn’t expect them to be down to around the £12 mark at all. As far as I knew they were still buying up land around my area and putting up the cheap housing so, would have thought theyd be cracking on.

They are advertising on the radio regularly now. Hopefully that is a good sign. Fingers crossed for a steady climb in price