Thursday, Jul 03, 2008
Barratt Shares have fallen by almost 97%
Me: Is Barratt bust??
Barratt share price on 6 Feb 2007 was 1289 (Click on the link above for price list)
Todays closing price is 41.50
Hence the fall in share price is
(1289 - 41.50) * 100
---------------------------- = 96.78%
1289
So if you invested £100 on 6feb 2008. Today it would be worth 3 pounds 20 pence.
I have no idea how they have not broken their covenance against their bank loans.
Barratt is the second largest house builder in the UK. If this is what the market values Barratt its actually valuing its land banks and its properties and project its developing.
So were they over priced by 93%.... Could be
Posted by deepak @ 09:41 PM (1022 views) Add Comment
11 Comments
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1. uncle chris said...
But to be fair Deepak ... in BBC terms it's not really a crash, just a correction, an adjustment, a dip, a softening of the share value. Seroiusly though, this really does show you just how much trouble the builders are in. Incidentally, can unsold housing stock be repossessed. If so, then standby for major repossession auctions in the next year.
2. Mattormsby said...
I think we should all club together and buy the company.... sack them all..
then dish the land up between us all... go into self build....
lol.. maybe we could then build a few more and rent them out...
3. mark wadsworth said...
"overpriced by 93%" ???
Don't you mean overpriced by 3,106%?
1289 divided by 41.5 times 100 = 3,106.
4. mark wadsworth said...
Anyway, what happened to the Halifax June House Price Index?
5. p. doff said...
1. uncle chris said...''Incidentally, can unsold housing stock be repossessed''.
Certainly can. A builder here went bust many moons ago, leaving several houses on an estate in varying stages of the build, from just footings to virtually complete. A friend of mine bought one of the almost finished ones, considerably cheaper than the builders price. The rest were obviously cheaper still.
6. growler said...
@ mark wadsworth
Absolutely right :-) How and when do you present figures that, quite simply, are totally awful?
7. p. doff said...
How and when do you present figures that, quite simply, are totally awful?
After they have been massaged - sorry, seasonally adjusted. If you are having a difficult rights issue.
8. enuii said...
Remember S2R1's 6-7-8 prophecy, looks like the Sesame Street storm clouds are gathering around the letter B.
B&B&B (Bradford & Bingley & Barratt) will tomorrow see a share price massacre with Chancellor Badger (Darling) announcing another Northern Rock style bailout for the pair on Sunday.
Or am I just stirring the pot tonight.
9. growler said...
@ p. doff
:-) So it's not just me that is a conspiracy theorist. Not at the level of some others I might add, but I can see an uncomfortable relationship between statisticians, lenders and brokers
10. gardeniadotnet said...
Or am I just stirring the pot tonight?
That's all you ever do isn't it?
11. little professor said...
Good one, enuii!