Wednesday, June 11, 2008

Probably beyond redemption…

Barratt 'needs £1bn to survive'

"In a savage note, Dresdner Kleinwort withdrew its target price on Barratt in a note titled: "Don't buy [at any price]." £1.7bn of debt, and a third of their land bank bought in the last year. If house prices fell no further, they could just about survive. Another 5% and they would have no means of paying down their debt. Another 10% and they will be unable to sell at cost. They're dead. Share price down another 20% this morning

Posted by uncle tom @ 10:09 AM (885 views)
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7 thoughts on “Probably beyond redemption…

  • tyrellcorporation says:

    I wonder if the government will step in to save them? Nah, for some reason that’s a treat saved for banks and ailing car plants located in Labour heartlands.

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  • financial planner says:

    Er…it might have been better if DK said don’t buy when the share was £13…

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  • Barratts will go bust very quickly if this keeps up – they are down 25% again today !!!!!!!

    price change % 52 wk-h 52 wk-l
    68.75 22.75 24.86 1075.00 91.50

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  • just had a look at the chart for “fun” really and it looks erm less than inspiring. Any short term bounce looks like a sale. Having said that yes its a bit late in the day, other opportunities look more reliable.

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  • Barratts share price peaked in January 07 at 1280, today it has dropped as low as 66. As a percentage this is phenomenal and illustrates these guys must have thought the good times were coming back. With a value of 5% from peak; this is dot-com stuff.

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  • sosoon 66 —– so far?

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  • Ah, sorry, I just submitted something similar covering Barratt’s woes. What’s really interesting is that Barratt’s big buyout last year, Wilson Bowden, is already having to cancel and retract development. Doesn’t look such a good idea at £2.2bn anymore.

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