Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Currently I have a negative outlook on UK property in the shorter term and that makes Savills (SVS) an attractive shorting opportunity. It is the UK’s leading estate agent and one of the biggest in the world, based on turnover, but with the share price very close to an all time, currently at around 712p and a market cap of just under £1 billion, this FTSE250 company looks over-valued to me.
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Comments
paul
Agree with the over inflated UK housing market theory. However, with interest rates possibly coming down another .25pc, this will only add fuel to the fire. So long term a correction is coming, short term, the bubble may go on! Subsequently, related companies may continue to benefit in the short term.
Gary Newman
Paul,
I think some will hang around for the dividend and then probably sell before the election to be on the safe side. Always hard to call an exact top on anything having a run like this but do think they’ll struggle to match the performance of 2014. Outside of the UK i think they’ll also see a slowdown. Obviously have the investment side of things as well but that has contributed a relatively small amount and UK market still has most significance, although Asia is also fairly major these days. Looking at it more as a longer term short – or a sell and re-buy lower – over a period of months rather than just a quick hit, as I think when the bubble does burst there will be plenty of downside for the sector.