Primary Recommendation

Ibstock - Supplier of bricks to UK housebuilders could benefit from surge in transactions after cut to stamp duty

October 2020

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.

Shares in Ibstock, the largest UK provider of clay bricks mainly used for the residential housing market, listed at 190p in 2015 and have been as high as 330p but have recently been battered by the aftershock from Covid-19, which put virtually all economic activity outside of the home into the deep freeze. However, Chancellor Rishi Sunak’s bold decision on 8 July to abolish stamp duty for buyers of homes worth up to £500,000 has already stimulated a dramatic improvement in activity and in the immediate aftermath, traffic to Rightmove’s website spiked 22% while in the four subsequent weeks, housing transactions have risen 20%. The stamp duty cut will be in place until 31 March and the hope is that the worst of the econom ...

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Ibstock (January 2021)

Ibstock (July 2020)

Ibstock (May 2018)

Ibstock (October 2017)

Ibstock (May 2017)

Ibstock - EPS forecast of 19p and 22p over 2 years (May 2016)

Ibstock (March 2016)

Ibstock - Supplier of clay bricks benefits from industry wide shortage (February 2016)

Ibstock - Strong debut for UK's largest brick maker (January 2016)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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