Building Shares

[Bouleversee]

Why are the building shares particularly badly affected on account of Brexit worries? E.g. Persimmon down over 5% - a large sum for me and I have others too.

[GrahamPlatt]

https://www.theguardian.com/business/20 ... t-concerns

[Bouleversee]

Thanks, GP. I should have thought the effect was approximately the same for all importers. At least PSN make their own bricks. So hopefully just another short(ish) term blip. It doesn't help to think ahead and stockpile if the port capacity doesn't follow suit. So who is going to benefit from this chaos at least in the short term. Perhaps my Clarkson shares will go up. Maybe BG's China Growth fund or IT, though that might leave a sour taste in the mouth. What else, I wonder? Does anyone here make window frames, doors etc. with UK timber? I hope there won't be unpropitious felling of trees here, however. We have enough environmental problems. Yet another reason to grow more, however,

[tjh290633]

Having, against my better judgement, read the Grauniad article, that might explain the weakness in Kingfisher shares. I'm surprised that we import screws, though. What do GKN do these days?

TJH

[dealtn]

I should have thought the effect was approximately the same for all importers. At least PSN make their own bricks.

Well I am not sure I would claim a 5% decline in a share price is "badly affected", more just "noise" to me. Especially so for a share that is up on all of a 1 week, 1 month, 3 month, 6 month 1 year, 3 year and 5 year views.

Interesting that they make their own bricks though as I didn't know that, so thank you. It seems they make 80m a year, but only use 50m of them so presumably make money from the additional 30m and will see increased demand if imports are as badly affected as some think. However they only source 40% of their requirement in-house so will be affected also.

I am invested elsewhere in the sector, but looking at "building" as a sector I would (and do) have more of my share ideas elsewhere, more in tune with infrastructure construction projects, rather than in house builders.

[dealtn]

I'm surprised that we import screws, though. What do GKN do these days?

GKN?

[Bouleversee]

and got taken over by Melrose.

5% plus may not be a very significant loss (although it tots up to a fair sum on my holding as it is my best performer and worth a large sum now) but it and Berkeleys were showing losses quite a bit more than the average and I just wondered why. I do see, however, that despite their abundance of bricks, things will grind to a halt if they can't get hold of window and door frames, doors etc. I daresay the situation will be resolved in due course.