It’s time to take profits on Barratt

Housebuilder Barratt Developments has just posted a good set of results, and most City analysts are tipping it as a 'buy'. But the recovery looks priced in, argues Phil Oakley. It’s time to take profits.

Trying to sell houses in a weak economy and tight mortgage market is not easy. So the management team at housebuilder Barratt Developments (LSE: BDEV) should be given credit for doing a good job the news that half-year operating profits rose by 40.5% is an impressive achievement.

The company has certainly learned some hard lessons from the housing boom and bust. It is focused on rebuilding profits, and has become very disciplined in buying land.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.