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Bought in at £35 per share. Gulp!!
https://www.proactiveinvestors.co.uk/companies/news/1015133/warren-buffett-s-berkshire-hathaway-buys-stake-in-diageo-1015133.html
Sure we’ll recover this afternoon
Oh dear, one of the last ftse 100 large caps that had been holding up the entire index now rolling over…..back to 5400 over the next two years as Brexit basket case U.K. and it’s tanking economy go through the wringer…again….expect sterling to get absolutely crushed going forward.
This is a prime example of a company trading at a large PE and not hitting targets, share price gets hit. The market has for quite a while been wary of North American sales forecast, is this making people even more concerned that this slow down in Latin America might spread to other markets?
Casapinos - agree with the revenue reduction but profits could be hit harder as a proportion of costs will be fixed.
To put today's fall in context DGE says that LAC which constitutes 11% of worldwide sales may fall by 20%. So 20% of 11% = 2.2% of sales and probably less of profits. But, the SP is currently down 13..5% . Is the market crazy? IMO yes.
Having said all that I bought a bit too early lol...still might have a bit more to fall before it comes back
I've held Diageo since I first bought shares...they were actually the first shares I ever bought. I've added a few every time they've dropped...especially on the Covid slump. They have always been in profit for me and any dividends I automatically buy more. Today was another big top up for me as it looks like a huge over reaction from the market. I sold other shares to buy more as I know there's one thing that will always sell well throughout depression or good times...booze.
“I'm 17% under water - gonna cut losses and move on GLTA“
On certain shares I’d agree but not with Diageo priced at these levels. I only have 100 but I’m adding another 100 today.
Diegeo is a market leader. Its downfall is being listed on the Permabear 100. An index priced by troglodytes from the Stone Age. Like every other establishment and institution in Britain, the stock market is decadent and falling apart at the seams; unfit for purpose and incapable of valuing equities.
Bearing in mind most Permabear listed companies make almost all their money overseas, it seems madness to let under-qualified, undereducated Neanderthals value them. Any company that makes its money elsewhere should wipe their feet on the country and the ftse on the way out. And Diageo is one of those companies.
It's been a while since DGE has issued one of these. Pointer to the state of wider global economy. Gives DGE the opportunity to buy back far more shares now, that is as long as they don't pull the buyback programme.
Haha just thinking yesterday, ooh this is green for the first time in forever. Bit of an over reaction but that seems to be the market at the moment.
I'm adding, I've watched DGE for several years, it's a well-run business in a market which is not going to go away. Humans have been drinking alcohol for thousands of years and will, despite the medical evidence, continue to do so. DGE has grown its revenues steadily for a decade and earnings for a similar period (save the COVID year). The SP is back near the 2020 lows and while it may take time to recover, it will, I have taken the opportunity of this morning's panic fall (driven as ever, by HFT bots all panicking in unison- A feature of the markets nowadays). I hold, comfortable in the knowledge that the SP will be above, well above, current levels in the medium-term future.
I'm 17% under water - gonna cut losses and move on GLTA
You totally missed the point.Nothing to do with "green" issues.
Remy Cointreau doen 10% today
It's about looking after this messed up world we live.
Far too many people fail to take responsibility for their actions nowadays.
One would undoubtedly bin the bag when they got home, that bag would go to landfill site, sit there for years polluting our planet! That's what the essence of the story is. Better luck next time.
Visited a Distillery in Scotland, yesterday. Bought 3 bottles of quality Malt . Naturally needed a bag, as items heavy. Charged 50p for the bag. As a shareholder no complaint. As a customer i was disgusted.
Just revisiting DGE as it has dropped back so much in last 12-24months.
Relative Strength Index (14) 65.3 BUY
Anything over 60 is a BUY on the RSI indicator if you are trying to beat the market..
It's a STRONG BUY at these levels. Fill your boots, and return in 6months
Share price targets you see from any broker are always over12months.
Secondly DGE should hopefully prosper over festive period more fingers x
Arguably yes. There would be fewer shares in circulation so when you divide the vale by the lower number of shares , those shares should be worth more.
That said you still got to take into account other factors, such as the debt issue mentioned below, or say legal issues that might relate to certain brands that DGE holds.
Arguably buy backs might obscure that things would otherwise be worse (share price speaking), but perhaps buy back might be a sensible way to preserve share price value. In a nutshell there's too much to a company like DGE to simply assume buybacks automatically translate into a higher share price.
Without buy backs, wouldn't the SP be even lower? correct me if im wrong
The buybacks over the past year don't seem to be achieving much, I would rather have the dividend and make my own decisions.
Thanks for your response
Appreciated
Nick, the business has debt with different maturity rates,
so issuing new debt (bonds in this case) is part of the process - I assume some
of their debt is coming to maturity over the next 12 months or so.
Please could someone explain
Diageo launches and prices two-tranche 1.7 billion dollar fixed rate USD demoninated bonds
Thanks