Tuesday, March 01, 2005
Just desserts from Ben Bailey
I spent much of 2004 as frustrated as a mayfly stuck on its back in a butchers. Nothing ever came off for me. I knew large gains could be enjoyed through the strategy I'd employed but payday never arrived. Companies in my portfolio reported strong trading and high earnings but share prices never moved to reflect this. I continued to flap and fight for modest returns.
2005 has brought a tremendous reversal in fortunes.
After a long wait, Ben Bailey is at last approaching the price the shares deserve. The 7a.m final results announcement from Ben Bailey this morning made my margarine on toast taste like a foie gras and caviar canape consumed on the back of a private yacht in the Caribbean.
Earnings per share, dividend per share and market outlook gave weight to a further 2.6% rise in the shares today, pushing the shares to 497p to buy against my purchases in 2003 and 2004 at 178p and 390p respectively. The largest stake in my portfolio is riding at an all-time high and this morning's news is the best I've been able to report since the blog began over a year ago.
The Ben Bailey chairman's statement read:
I am delighted to be able to report that the Company has produced further record results. Turnover increased by 29.8% to £81.5m (2003: £62.8m), from the sale of 527 houses (2003: 450 houses). Profit before tax increased by 27.9% to £16.47m (2003: £12.88m) with operating margins showing a further improvement to 22.4% (2003: 21.9%). As a result of the above, earnings per share increased by 26.9% to 100.5p (2003: 79.2p).
with sentiment toward the housebuilders turning upwards, further gains could still be in the pipeline. The crucial month of March has started well but I must guard against complacency. Even in the light of this excellent news, I'll be selling Ben Bailey at 522p given the chance.
The Artful Dodger
2005 has brought a tremendous reversal in fortunes.
After a long wait, Ben Bailey is at last approaching the price the shares deserve. The 7a.m final results announcement from Ben Bailey this morning made my margarine on toast taste like a foie gras and caviar canape consumed on the back of a private yacht in the Caribbean.
Earnings per share, dividend per share and market outlook gave weight to a further 2.6% rise in the shares today, pushing the shares to 497p to buy against my purchases in 2003 and 2004 at 178p and 390p respectively. The largest stake in my portfolio is riding at an all-time high and this morning's news is the best I've been able to report since the blog began over a year ago.
The Ben Bailey chairman's statement read:
I am delighted to be able to report that the Company has produced further record results. Turnover increased by 29.8% to £81.5m (2003: £62.8m), from the sale of 527 houses (2003: 450 houses). Profit before tax increased by 27.9% to £16.47m (2003: £12.88m) with operating margins showing a further improvement to 22.4% (2003: 21.9%). As a result of the above, earnings per share increased by 26.9% to 100.5p (2003: 79.2p).
with sentiment toward the housebuilders turning upwards, further gains could still be in the pipeline. The crucial month of March has started well but I must guard against complacency. Even in the light of this excellent news, I'll be selling Ben Bailey at 522p given the chance.
The Artful Dodger
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