vitranc Introduction Persimmon ( OTCPK:PSMMY , OTCPK:PSMMF ) (PSN.L, listed on the London Stock Exchange) is one of the largest homebuilders in the UK. It builds homes under three brands and is known for selling more affordable ones with an average asking price of 20% below peers. What’s unique about Persimmon is that it has the most established off-site manufacturing of timber walls, roof tiles, and bricks, essentially a vertically integrated business. The business benefits from a structurally undersupplied UK housing market where there has been no real solution for the lack of high-quality housing for over a decade. The business is also resilient and has improved operationally since the great financial crisis in 2008. It has survived the worst period in the housing industry, and the company and balance sheet have transformed, with margins improved markedly. The latest financial update also shows an excess cash balance sheet of nearly £1B, giving a solid buffer as it prepares for a higher interest rate environment. I believe the valuation is attractive at the current price (£14/share) and might offer an upside for nimble investors who can time the market (not us). However, Persimmon is not a sleep-well investment. I don’t […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
