Updates & Ideas

Housebuilders look over-sold

October 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Housebuilders look over-sold The headlines surrounding cost of living increases has seen deep value emerge amongst UK housebuilders but in a recent research note, one broker, Jefferies, says the sector trades at 1x net tangible asset value (NTAV) and below liquidation. It argues share prices now reflect an anticipated 13% decline in house prices. However, there are bright spots amidst the gloom and I highlight two below. Crest Nicholson (CRST, 231.5p)Founded in 1963 Crest is unusual in gaining not one, but two public listings over its 59 year history. Originally listing in 1968 as a composite house builder, general contractor and mini conglomerate it nearly went bust in the credit cru ...

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