Jump to content
House Price Crash Forum

Woah! Taylor Wimpey Just Dropped Off A Cliff


Recommended Posts

Wimpey has been down all day, but it just plummeted to be the biggest FTSE listed loser.

price change % 52 wk-h 52 wk-l

27.00 4.75 14.96 360.00 31.75

Any thoughts on why, apart from the usual problems.

They build properties that are too expensive, which the banks now won't finance. All this is a bit like Hovis baking loafs and selling them for 2 Grand, then wondering why no one wants them. :blink::blink:

All they need to do to stay afloat is to build affordable properties, simple. Is this not how every other business operates - by selling a product the consumer can actually afford to buy??

Wimpey and all the rest are maniacs that deserve to go to the wall for not even knowing the basics in how to run a business. Unbelievable!!

Edited by Wait & See
Link to comment
Share on other sites

They build properties that are too expensive, which the banks now won't finance. All this is a bit like Hovis baking loafs and selling them for 2 Grand, then wondering why no one wants them. :blink::blink:

All they need to do to stay afloat is to build affordable properties, simple.

and sell off their existing stock and service their debt...

Link to comment
Share on other sites

They build properties that are too expensive, which the banks now won't finance. All this is a bit like Hovis baking loafs and selling them for 2 Grand, then wondering why no one wants them. :blink::blink:

All they need to do to stay afloat is to build affordable properties, simple. Is this not how every other business operates - by selling a product the consumer can actually afford to buy??

Wimpey and all the rest are maniacs that deserve to go to the wall for not even knowing the basics in how to run a business. Unbelievable!!

The basic problem is that they have paid way over the odds for land. As far as I understand it they have borrowed massively against the assumed value of this land. With this falling by the day they are basically screwed. If this is revalued to reflect the its true value then they are effectively in negative equity territory (like a lot of their customers!). :unsure:

They are totally BROKE!!!

I guess the alternative is to pretend there isn't a problem and keep an artificially high valuation on their books. This happened following the crash in Japan in the '90's with the result that even today there are plots that have been vacant for years as to sell them or build on them would be to accept their lower value. The banks might actually go along with this as otherwise the builders will be declared bankrupt and the banks will have to write off their loans.

Link to comment
Share on other sites

The basic problem is that they have paid way over the odds for land. As far as I understand it they have borrowed massively against the assumed value of this land. With this falling by the day they are basically screwed. If this is revalued to reflect the its true value then they are effectively in negative equity territory (like a lot of their customers!). :unsure:

They are totally BROKE!!!

I guess the alternative is to pretend there isn't a problem and keep an artificially high valuation on their books. This happened following the crash in Japan in the '90's with the result that even today there are plots that have been vacant for years as to sell them or build on them would be to accept their lower value. The banks might actually go along with this as otherwise the builders will be declared bankrupt and the banks will have to write off their loans.

Indeed, this can be the only explanation as to why they suddenly cant make money..... Building materials and labour are more or less the same as ten years ago, prices are three times as high..... they were making money ten years ago..... it can only be they've been silly sausages with their land purchases (that or they've been doing a Max Mosely with their profits for the last ten years).

Link to comment
Share on other sites

Indeed, this can be the only explanation as to why they suddenly cant make money..... Building materials and labour are more or less the same as ten years ago, prices are three times as high..... they were making money ten years ago..... it can only be they've been silly sausages with their land purchases (that or they've been doing a Max Mosely with their profits for the last ten years).

I can't understand how these companies can be in such a poor position having had all these years of large profits, surely they can just scale down their operations. They were making a profit when house prices were half their 'current notional value', and costs other than land have not risen all that much.

Link to comment
Share on other sites

I can't understand how these companies can be in such a poor position having had all these years of large profits, surely they can just scale down their operations. They were making a profit when house prices were half their 'current notional value', and costs other than land have not risen all that much.

Because all the money's been ciphoned off abroad, with the debt lying here

Link to comment
Share on other sites

They build properties that are too expensive, which the banks now won't finance. All this is a bit like Hovis baking loafs and selling them for 2 Grand, then wondering why no one wants them. :blink::blink:

All they need to do to stay afloat is to build affordable properties, simple. Is this not how every other business operates - by selling a product the consumer can actually afford to buy??

Wimpey and all the rest are maniacs that deserve to go to the wall for not even knowing the basics in how to run a business. Unbelievable!!

I wonder how long it will be before bread is actually 2 grand a loaf :P

Edited by Patfig
Link to comment
Share on other sites

Guest KingCharles1st

An awful lot of infrastructure to keep running on few house sales.. These big building companies are a bit like Jabba the Hut, except now they are only getting one bowl of rice a day to eat.

Link to comment
Share on other sites

I can't understand how these companies can be in such a poor position having had all these years of large profits, surely they can just scale down their operations. They were making a profit when house prices were half their 'current notional value', and costs other than land have not risen all that much.

Its easy to go bust. You just SPEND to much.

These guys bought things for too much at the wrong time.

Proves that "genius business people" are mostly the result of a boom, no skill required.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    No registered users viewing this page.





×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.