Wednesday, Apr 11, 2007
Who'd have thought it!
Guardian: Hazy outlook hits 'sub-prime' mortgage firm
Shares in Kensington Group fell 4% this morning after the specialist mortgage company admitted that it is unable to predict its profits for this year.
Posted by inbreda @ 02:20 PM (133 views) Add Comment
10 Comments
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1. inbreda said...
Can't have been more than a few days ago someone in the Guardian was claiming how different the US and UK were, and how supply and demand and the shortage of building land was going to prop up the UK market, and yet here we have the truth.
The CEO suddenly does a runner. They can't predict their profits (i.e. they CAN predict their profits, but they're too damn scared to tell anyone!!). 10% are in arrears. And best of all - they considering offers for the company - any method of muddying the accounts so that noone can tell what a massive mess they're in.
2. This comment has been removed as it was found to be in breach of our Blog Policies.
3. Sam said...
the company might be worth a punt -40% of asking price.
4. royston said...
Kensington Group still has a share price??!!!!!!????? The shares are still trading?????????????
5. bingo said...
Kensigton shares are off by around 5.5% today alone, and they are approx half the value of their 52wk high. So they are being dumped. Who said there was no sub-prime market in this country? I know someone said that, I just can't remember who it was. We need to find out who and ridicule them.
6. paul said...
"We need to find out who and ridicule them."
Try David Smith over at economicsuk.com. He's the biggest nob there is when it comes to economics writing. He's said (amongst other things):
"Gordon Brown is firmly in control of the economy"
"Current inflationary trends are a temporary spike"
"Oil will fall to $40 per barrell, very soon"
"Mortgage equity withdrawal is a form of wealth generation"
"House prices in the US are not falling at all"
"The UK and ustralia have had a soft landing unlike the US housing market"
7. bingo said...
I will email him and ask why he thinks there is no sub-prime in this country. I have owned homes in both the States and in the UK and I can testify that there is a tougher approval criteria in the States for mortgages than there has ever been in this country. The lending houses are a lot more critical when it comes to who they lend money to accross there. I can't believe anyone would listen to these so called economists (David Smith), he has no first hand experience of actually going through the approval process in the States.
8. bingo said...
Actually just onto his site, pretty interesting forum on house prices going on over there. Not all bulls and not all bears, seems pretty balanced. Good link, thanks for that.
9. paul said...
"pretty interesting forum on house prices going on over there"
there was until he went on holiday and mysteriously forbade anyone from posting. If you read what's atcually happening they're all ridiculing him for his blinkered optimistic take on the housing market.
10. sold 2 rent 1 said...
I will be giving DS both barrels when he gets back
He used the LSR affordability index to back up his views when prices were rising.
Now LSR say prices will fall in 2008, DS says soft landing.
He will start predicting HPC 1 month before it happens.
That is like the weather man predicting rain when the clouds go dark and low and a few splashes hit your face.
It's just not good enough.