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FreeFall

I Must Be Missing Something

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So, a few days ago Bovis announced a drop in profits of 20% with a hollow promise that the housing market is looking up.

Since then their share price has gone up by nearly 10%.

Anyone know why this has happened? I would have thought that a drop of 20% in profits would lead to the share price going down through people selling off / profit taking and finding somewhere more profitable for their hard earned cash?

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Short covering? Or some other reason?

If before the neg statment some people were positioned before hand then there covering may have caused a temorary shortage.

Or was used as a cove for an accumilation of the stock pending some one knowing some good news ar prop hype or other customers comming into the market from other proffesional reasons.

There can be lots of reasons. If the news is ever the reason it will be future news that some one knows or is anticipating.

In the current climate even un founded future news can be a reason to buy.

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I have posted on iii website on the Redrow and Persimmon BB (and Northern Rock in protest about them offering 7x mortgages) to people owning these shares and tried to install a HPC in their minds. However all they talk about is takeover rumours ??

They will not listen??

that is why the shares are rising

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I have posted on iii website on the Redrow and Persimmon BB (and Northern Rock in protest about them offering 7x mortgages) to people owning these shares and tried to install a HPC in their minds. However all they talk about is takeover rumours ??

They will not listen??

that is why the shares are rising

I heard some time ago that Persimmon was looking for another significant acquisition. Do they have Bovis in mind?

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Shares work on expectations. So if everyone expected a drop in profits the price wouldn't change much. If the drop was less than people anticipated then the share price may go up. If people suspect a takeover they will buy speculatively.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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