tag:blogger.com,1999:blog-1141932539860553199.post5415028826777949593..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Land banking? Nah, not us mate.Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-1141932539860553199.post-307897254040927722015-07-04T18:52:16.291+01:002015-07-04T18:52:16.291+01:00DBC, it is just accounting tradition to show stock...DBC, it is just accounting tradition to show stocks at lower of cost and net realisable value. But they say that their land bank is worth £4 ban and the total value of their shares is £4 ban, so what's the problem?Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-43914151416028297052015-07-04T18:43:53.255+01:002015-07-04T18:43:53.255+01:00DBCR. et al. No spec house builder 'should&#...DBCR. et al. No spec house builder 'should' mark to market. If he does he is deluding himself about his profits because he has to replace his stock of plots. HOWEVER, as we can see from Persimmons figures they are not spec house builders. Their business is in buying land and obtaining planning permission and then maybe building some houses or more likely dealing on the land. I prefer not to call it 'speculation' as it gives true speculators a bad name. True speculators take the slack out of markets - grain merchants for example.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-80308728848571946442015-07-04T15:52:48.973+01:002015-07-04T15:52:48.973+01:00@MW
Put it another way then: why aren't these...@MW<br />Put it another way then: why aren't these plot valuations made mark to market?DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-79025205021297807702015-07-04T10:46:37.328+01:002015-07-04T10:46:37.328+01:00P, exactly.
DBC, I do not know whether you unders...P, exactly.<br /><br />DBC, I do not know whether you understand my an kj's comments or whether you understood them but are disagreeing with them, and if so what your disagreement is.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-2399234100791791092015-07-04T09:00:07.091+01:002015-07-04T09:00:07.091+01:00PS
I though this is what "mark to market"...PS<br />I though this is what "mark to market" procedures meant.DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-19840943113799614162015-07-04T08:49:32.822+01:002015-07-04T08:49:32.822+01:00@MW
Perhaps the conventions of accounting need an ...@MW<br />Perhaps the conventions of accounting need an internal professional challenge: not all stock is really valued at cost or at a mark-down. This outfit is openly trading at 100% inflated price for its stock of land; as Physiocrat says it's its commercial raison d'etre. Can you sign off accounts and audits knowing them to be unreal?DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-33035183583841423162015-07-03T23:15:24.288+01:002015-07-03T23:15:24.288+01:00I dont see why they are a problem. Are the people ...I dont see why they are a problem. Are the people who keep voting for it really to be put in the dock.<br /><br />They will almost certainly trade the piece of paper. Much easier than building houses.<br /><br />On inheritance tax (property tax) ...<br /><br />http://www.meltfund.com/2015/07/good-news-inheritance-tax-property-tax.htmlRobin Smithhttps://www.blogger.com/profile/04648517992918303543noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-79081428112504279922015-07-03T20:58:33.558+01:002015-07-03T20:58:33.558+01:00Their core competence is land speculation, pure an...Their core competence is land speculation, pure and simple.Physiocrathttps://www.blogger.com/profile/13682019625346594568noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-77889408244762183562015-07-03T15:52:46.320+01:002015-07-03T15:52:46.320+01:00Kj, good work, thanks. Which proves my point.Kj, good work, thanks. Which proves my point.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-57552168037900198482015-07-03T15:45:40.420+01:002015-07-03T15:45:40.420+01:00MW: which accidentally is their market cap also ac...MW: which accidentally is their market cap also according to their website...Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-62202119533170414372015-07-03T14:01:22.127+01:002015-07-03T14:01:22.127+01:00DBC, they are stocks so shown at lower of cost and...DBC, they are stocks so shown at lower of cost and value. I checked their accounts, the plots are shown at £20,000 each on the balance sheet although in the blurb it says that are actually worth twice that I.e. About £4 billion = 90,000 x £40,000.<br /><br />FFS!Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-77006315906561065552015-07-03T13:50:06.549+01:002015-07-03T13:50:06.549+01:00@MW What's the accounting convention with this...@MW What's the accounting convention with this? Presumably these 90,OO0 plots are appreciating in value and loans can be raised against them? Does this value appreciation appear anywhere on the balance sheet?DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-65180162036889611322015-07-03T12:19:08.447+01:002015-07-03T12:19:08.447+01:00MW: thanks. MW: thanks. Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-10053944914294981082015-07-03T11:46:28.071+01:002015-07-03T11:46:28.071+01:00MW. Precisely. Clever innit?MW. Precisely. Clever innit?Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-42866442374396526012015-07-03T11:35:43.001+01:002015-07-03T11:35:43.001+01:00L, correct, but if they have to pay for that value...L, correct, but if they have to pay for that value, then they wouldn't be land banking in the first place.<br /><br />Kj, it means with permission to build, tomorrow if they want. Consent = permission, it is the same thing.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-27379097089424945332015-07-03T11:26:03.294+01:002015-07-03T11:26:03.294+01:00Just a question Mark, when they say "consente...Just a question Mark, when they say "consented landbank of 92,240 plots", do you think that means plots they have building consent/permit on, and could build tomorrow if they wanted to?Kjhttps://www.blogger.com/profile/13530243002915410700noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-23056857430248470722015-07-03T11:08:46.438+01:002015-07-03T11:08:46.438+01:00Actually there is nothing intrinsically wrong with...Actually there is nothing intrinsically wrong with that - as long as they pay the 'rent' to the rest of us...Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.com