Wimpey

It is true that the ratio of house prices to earnings is at an all time high - about 5.8. But what is new is that long term interest rates are much lower. So people can afford to pay much more on any given salary. I think the level of profits made by WMPY are not only sustainable but will rise. It is of course the fact that many more people disagree with me and believe that the market will crash and the profits will be wiped out that explains the miserable price earnings ratios. WMPY will certainly become a FTSE 100 company before BKL. It has higher profits and more than twice the turnover.