What, folks, is wrong with PSN?

[Arborbridge]

Moderator Message:
Moved from Company News because that board is reserved for company news and a bit of discussion around that news; whereas this board is much more suitable for general discussion about shares. Chris

What, folks, is wrong with PSN? Is it a bargain on offer, or a trap?

I see the price has be steadily dropping for a year now which rings alarm bells. Of course, this might be groundless worries about shortage of materials etc which will be reversed before long, but share prices which fall for this long, are often telling us something.

The question is: what is it?

[daveh]

What, folks, is wrong with PSN? Is it a bargain on offer, or a trap?

I see the price has be steadily dropping for a year now which rings alarm bells. Of course, this might be groundless worries about shortage of materials etc which will be reversed before long, but share prices which fall for this long, are often telling us something.

The question is: what is it?

Its not company specific. I've just stuck some of the builders into the LSE charting tool and Barratt, Vistry, and Taylor Wimpey show very similar share price graphs. Berkeley is also vary similar except recently where it has bucked the falling trend of the others..

[scrumpyjack]

I guess the concerns the analysts have with builders, which have resulted in the SP weakness of the sector, are

costs of the cladding issue
rising interest rates leading to a fall in house prices
end of the help to buy scheme

It seems to me that the current prices over discount these problems and I can see nothing that is going to reduce the fundamental imbalance between supply and demand in the housing market.

I will certainly keep my Barratt and Persimmon shares, but it takes two views to make a market!

[idpickering]

I guess the concerns the analysts have with builders, which have resulted in the SP weakness of the sector, are

costs of the cladding issue
rising interest rates leading to a fall in house prices
end of the help to buy scheme

It seems to me that the current prices over discount these problems and I can see nothing that is going to reduce the fundamental imbalance between supply and demand in the housing market.

I will certainly keep my Barratt and Persimmon shares, but it takes two views to make a market!

I agree with the gist of your post. tbh, I get that shares in house builders can be fickle, what with the sector being prone to being cyclical, and I'm ok with that. I'm not remotely fazed by the downturn in the PSN sp, shall continue to hold, and as I've said before, may well buy more PSN shares soon.

Ian.