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Crest Nicholson - Varde sells out and removes overhang

December 2014

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.

  • Epic Code:
  • CRST
  • Price:
  • 359p
Another share snaking upwards is housebuilder Crest Nicholson (CRST; 359p), after a longstanding overhang in the shares finally went. Hedge fund Värde, which rescued the business a few years ago, has now sold its entire stake. Perhaps not entirely coincidentally, with some fanfare, Goldman Sachs has made the shares one of its 2015 Conviction Buys with a 598p target.Crest operates in the South of England. It built 2,172 units in 2013 at an average sale price of £250,000, generating sales of £526m. Despite the prevailing gloom in the sector, the company is targeting revenue growth of 70% by 2016 through a combination of higher volumes (+25%) and higher prices (+35%). This supports broker eps forecasts of 46.7p for th ...

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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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