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Not my part of the world but Primark Norwich was busy.
Only browsed the mens section but outstanding value on good quality products.
Posted on the BARC bb by Mr A but also applies to ABF.https://www.ig.com/uk/news-and-trade-ideas/best-cheap-stocks-to-buy-in-july-220728
*throw :)
Nice to see it tipped in the times today:
https://www.thetimes.co.uk/article/share-tip-trend-is-turning-in-favour-of-primark-owner-abf-0fnxzp5k9
I don't have access but can imagine that the main thrust is around primarks value proposition and its appeal to households who will have their budgets further squeezed over the next few months. I agree and think it is good value on both a multi year historic and forecast earnings perspective. Through in an appealing dividend and prospective store growth and I think it's one to tuck away for a few years.
On a multiple of 15 here that is not cheap by any stretch. Investors in these times r looking for bargains. What would draw them here. They reduced there dividend is there any sign of that coming back does anyone know and what level it would be at.
Primark-owner Associated British Foods (ABF) is ‘materially undervalued’ considering its leadership position and ‘excellent’ balance sheet, says Shore Capital.
Analyst Clive Black retained his ‘buy’ recommendation on the stock, which closed down 0.4% at £15.84 on Monday.
He noted Primark’s move into digital shopping, with a click-and-collect trial running in North West England, and said its ‘prime located stores’ are ‘very well operated, with, crucially, price leadership for the products on offer – not an irrelevance in recessionary times’.
‘We believe that Primark will prove to be resilient through this cycle, noting that it is a business that intends to expand from around 400 outlets to around 530 by 2026 while its parent is highly cash generative with an excellent balance sheet,’ said Black.
‘ABF’s equity appears materially undervalued to us.’
Another insider buy, this time a little north of £45 000.
should have waited.
Bought them on Wednesday at 1636p. Quite a vote of confidence for a non exec.
Director purchase of 45 000 shares showing up on this morning’s RNS.
That’s over £700 000.
" false eyelashes and nails performing particularly well from the revival of socialising"....
blimey..in may day we never thought we needed them just to socialise ..how things change .. :-)
https://www.theguardian.com/business/2022/apr/26/primark-rising-costs-price-rises-abf
https://www.theguardian.com/business/2022/apr/26/primark-rising-costs-price-rises-abf
Perfect recovery play this one. Very strong cash balance and plenty of growth potential. Why they don't tie up with Amazon I don't know! Would be a devastating combo in my opinion.
* oops ..highest yield
Why the market reaction is so bad?
the results are the past, despite being good...market looks to the future ....sees the cost/price/margin pressures ahead .....
market will no doubt look for a low with which to get in for the forthcoming dividend at the lowest yield ...so a bit of game playing for that I would imagine
Great co on the cheap imo, profits and dividends up-cost pressure but that is everywhere and people just need to live with it as it's not going away, very oversold here
Hopefully the momentum from the last update is carried through in these difficult times.
Mid-teens P/E
Great balance sheet
Trading >50% below it's all time highs
Primark will remain very popular even in inflationary times
New stores in US and Europe
Nah, that's a load of rubbish.
We don't stop buying basic food stuffs even though the price rises, same as needing new knickers or socks. When times are hard are you going to get your socks from M&S, Amazon, the poundshop or Primark? A big portion of people will associate Primark with value for money, hard times are actually good for them.
This price is too cheap based on the numbers, I'll be buying more with the expectation of seeing mid 20s sometime in the next 12 months.
Hmm, risky. The difficulty is knowing how low these can go. There just seems to be no support. Best to wait until signs of a real recovery going on. High Street is dead nowadays and when people do return to the empty car parks, it's for one or two essential items or the odd gift. Gone are the days of filling the baskets with cheap tat from Primark.
I suspect the fears are around inflation of wheat due to the Ukraine conflict. It is traded as a global commodity, and whilst ABF don't buy from Ukraine for their bakery businesses the fact that both Ukrainian and much Russian wheat will be off the market will have an impact. They will have a lag between commodities rising and being able to recover margin through price rises, although that should be a short term problem.
I also think that in times of higher inflation discounters like Primark benefit massively compared to say Next or M&S, less money in shoppers pockets likely means more spent at Primark rather than less.
I'm happy to take a punt at these prices and will be buying in tomorrow with expectation of a rise post results later this month, and longer term a return to pre-covid levels.
This seems incredibly undervalued, am I missing some glaring controversy / mistake / risk? Any help appreciated, just doing my initial overall DD today.
Cheers!
Website is an absolute joke as expected.
They said in last TU that "the group is on track to launch its new website in the UK by the end of March." Well I just had a look and it's up and running but you still have to go to a store to collect so what's the point? My guess is you also have to go to the store to return items. Also the range of products is derisory and pathetic - in menswear- 5 jeans , 16 T shirts, etc. Come on Primark - you must do much better if you pretend to compete with the offerings of proper online retailers.
That must be a lot of posts. No idea how many as I filtered him years ago. He was deramping BOO regularly 20 posts daily.
ABF having a torrid time still I see.
All his posts appear to have been deleted....?