Barratt Developments (BDEV)

SHARE TIP: Barratt won't escape the need to cut the value of its land bank to realistic levels

November 14, 2008

by BarrettC

BEAR POINTS:

■ Substantial writedowns ahead

■ Profits sacrificed for cash flow

■ Lousy outlook for housing market

■ Generous selling incentives store up trouble

BULL POINTS:

■ Rumoured land joint venture

■ Further government help in housing market

IC TIP: Sell at 82p

Shares in all of London's listed housebuilders rallied in the build up to last week's widely anticipated . But even the compensation of UK base rates at a 50-year low won't prevent further horror in the housing markets.

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