No prizes for guessing which two housebuilders suffered the greatest share price plummet in 2008. Yes, Taylor Wimpey and Barratt.
The imaginary 拢100 invested by 好色先生TV at the end of February, before the calamitous spring selling season, is now worth 拢6 in Taylor Wimpey and 拢15 in Barratt. For the record, our punt is now worth 拢32 in Persimmon, 拢71 in Bellway, 拢65 in Bovis Homes and 拢58 in Redrow.
Meanwhile, Taylor Wimpey totters towards a covenant breach on 1 January like a wobbly aunt after too much Harvey鈥檚 Bristol Cream. Those in the know are still adamant that a refinancing deal will be done but there鈥檚 a hint of exasperation. 鈥淭he fun just keeps rolling on at Taylor Wimpey,鈥 quipped one this week.
Despite the doubts a leaked email from chief executive Peter Redfern this week hinted that talks with lenders were progressing well.
Robin Hardy, an analyst at KBC Peel Hunt, believes the company will still be standing in the new year. He has called it 鈥渢oo toxic to topple鈥, given the banks鈥 unwillingness to close it down and take the assets onto their books, and after crunching the numbers on a debt-for-equity swap. Last week he switched his recommendation on the stock from 鈥渉old鈥 to 鈥渂uy鈥. After all, a lot can happen to a 拢100 stake in a year.
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