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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 16
No. of Recommendations: 6
Seeking Alpha analyst made a timely call of Strong Buy
Taylor Morrison Home Corporation remains a compelling buy in the homebuilding sector despite near-term headwinds and recent operational softness.
TMHC's differentiation through resort lifestyle communities and a high-credit, high-income customer base positions it well for future demand recovery.
Financials show revenue and unit declines, but shares remain attractively valued both absolutely and relative to peers, supporting a continued buy rating.
Long-term catalysts include a persistent US housing shortage and anticipated interest rate declines, which should drive renewed homebuyer activity and profit growth.
https://seekingalpha.com/article/4905642-taylor-mo...
No. of Recommendations: 11
Berkshire Chief Executive Greg Abel described Taylor Morrison as a leading homebuilder and said the acquisition aligns with Berkshire's longstanding investments in housing-related businesses. He added that Berkshire expects to integrate its site-built homebuilding operations into a larger platform over time.
Following the acquisition, Taylor Morrison will continue to be led by its current management team, including Palmer as chief executive.
Goldman Sachs and Moelis are serving as financial advisers to Taylor Morrison, while Simpson Thacher & Bartlett is acting as legal adviser.
https://seekingalpha.com/news/4598717-berkshire-ha...Glad to see that Berkshire under Abel continues not paying big money to investment bankers and legal advisers.
No. of Recommendations: 0
On website it says news from Berkshire Hathaway and Warren Buffett.
No. of Recommendations: 17
Becky just said on CNBC she spoke
to WEB yesterday about deal and he said he had nothing to do with it. He said Greg did the deal faster than
an he could, smoother than he could etc.
No. of Recommendations: 2
tmhc was down 5 % last month so the deal was not leaked, well done. I didn't follow the option action in the stock.
No. of Recommendations: 1
" tmhc was down 5 % last month so the deal was not leaked, well done. I didn't follow the option action in the stock."
There is almost no open interest in the tmhc options hence front running the news via options wasn't an option. All parties kept this deal private, well gone these days.
No. of Recommendations: 1
Berkshire Hathaway Buys Homebuilder in CEO Abel’s First Takeover
Berkshire Hathaway is sitting on nearly $400 billion in cash–and it looks like the conglomerate’s new CEO Greg Abel is keen to start spending it. Berkshire said on Sunday that it had agreed to buy a leading homebuilder, the first acquisition it has announced since Abel replaced Warren Buffett at the helm.
• Berkshire agreed to buy Taylor Morrison Home for $8.5 billion in cash, including assumed debt. Berkshire is paying $72.50 a share for the Arizona-based company, a 24% premium to the stock’s closing price Friday of $58.50.
• The deal signals a willingness by Abel to make purchases using the $400 billion cash pile, and it also adheres to Berkshire’s historic price discipline in buying stocks or companies. At Friday’s close, Taylor Morrison stock was near its 52-week low.
• “Joining Berkshire Hathaway is a once-in-a-lifetime opportunity to propel Taylor Morrison into its next, and most exciting, chapter, supported by Berkshire’s unmatched capital strength and long-term investment philosophy,” Taylor Morrison’s CEO Sheryl Palmer said.
• Barron’s wrote earlier this year that a homebuilder would be a natural purchase for Berkshire. The conglomerate appears to be taking advantage of the weakness in home-building stocks to get a well-regarded Sunbelt company for a discounted price.
What’s Next: The transaction, while not large, likely will be well-received by Berkshire investors. Berkshire’s Class A stock, which ended Friday at $710,900, is down 6% this year and is more than 15 percentage points behind the S&P 500 index.
—Andrew Bary and George Glover
No. of Recommendations: 2
No. of Recommendations: 5
Berkshire agreed to pay $72.50 a share in cash for Taylor Morrison, valuing the homebuilder at roughly $6.8 billion in equity value and $8.5 billion including debt. Analysts at Citizens said the valuation appears modest compared with recent deals in the industry.
"Based on recent completed transaction multiples, the 0.9x price-to-tangible book value multiple we estimate Berkshire is paying appears low relative to recent public builder transactions," Citizens analysts wrote.
They noted that the acquisition of Tri Pointe Homes earlier this year implied a multiple of roughly 1.2 times forward tangible book value, while MDC Holdings was purchased at about 1.3 times tangible book value last year.
"Given Clayton Homes is already the largest producer of manufactured & modular housing in the US, we believe Berkshire could leverage this transaction to infuse additional off-site construction methods at TMHC," UBS said in a note. "We expect continued consolidation of the US homebuilders, which could provide a meaningful catalyst for industry improvement, efficiency gains and stock price appreciation."
https://stocks.apple.com/ApvRZlVK2RQ-cSCzFOjwzKg
No. of Recommendations: 3
I did email in and suggest Barratt Redrow in the UK, trading at a substantial discount to NTAV (42% below), market cap £3.7bn & strong balance sheet.
Historically this type of valuation has been bottom of range.
No. of Recommendations: 2
Out of curiosity, have you taken a look at some of BTRW's competitors? I'm thinking of Vistry, which has been taken to the woodshed. Granted, things look ugly in the short term, but they're selling for maybe 5x earnings* (*or maybe not, depending how bad earnings get). Also at roughly 25% of book or 50% of tangible book (using the company's numbers for land assets). Management seems mostly rational. I haven't dug into their debt very deeply, which would be an obvious next step.
No. of Recommendations: 1
Yes but I only have Barratt atm. From a management perspective (being more well managed) the only other two I would consider investing in are Persimmon and Berkeley. They also have strong strategic land teams / bank, take a long term view and are more shareholder friendly imo.
However, I have not looked too closely at their valuations compared to Barratt.
I personally avoid the others.
