The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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happy to stay . good team and captain at the helm .
It's mystifying isn't it..what looks like excellent sales figures hasn't translated into a higher SP..I guess higher revenues mean nothing unless margins increase
It is great update. I am surprised though it hasn't reflected on SP. I guess it's general market sentiment or am I missing something.
Those are pretty hefty growth numbers in revenue, as inflation and input costs stabilise they will lead to increased margins. I admit I am surprised the food business is so positive, I expected Primark to continue to knock it out of the park but thought foods would be challenged.
Deutsche upgrade this morning and trading update tomorrow morning
good company , NOT RUN BY IDIOTS ,,,they always make money , if the divi was alot higher more would be interested. but they reinvest , im in .
With positive results out from all the supermarkets ( £12 billion + Xmas ) and the home cooking boom
and recession proofed primark what’s not to like
GLA
Trading update due on 24th Jan, looking to add more to my position before then. Out of all retailers Primark will be one that should benefit from the current climate. Healthy cash flow and very serviceable debt enables the company to weather any uncertainty to come this year.
Quiet on here. Thinking of buying some before Jan trading update. I think Primark will have hit decent numbers and battered retail in general may get a tick up this month. Worst case my short term pay may turn long term!
What are holders thoughts on trading and SP performance?
Yes the divi yield 2.7% is quite low but they are using the earnings to invest in newer stores and online technology for online sales. They are going for growth by investing in wider markets and new trends.
I've recently been to Westfield London in Shepherd Bush on a Thursday for a day out. I saw quite a number of people having Primark bags but not other retailers. Okay some M&S. Westfield seems to be quite quiet as I was expected it to be a bit busier with people shopping for Xmas presents. Primark bags stood out from what I saw...
Couldn’t be more phlegmatic. Waste of time.
I know you guys have a lot of questions and want to know the latest about ABF I suggest you follow @ABFInvestor on twitter where all these topics can be discussed or are already discussed for example "Goldman upgrade" has already been tweeted about and you can search "@abfinvestor Goldman" and engage on the thread, You can also ask questions about the company and the guy is most eager to respond. I find this views and information much better than on any of the forums on lse
I believe Primark is approximately 50% of ABF at present. For me - the existence of the diverse food business provides great diversity.
I do not hold this share in my portfolio - yet! I'm a great believer in observing businesses that do well just by looking around me. Nokia and Microsoft i the early / mid 90's; Netflix in 2000. I spotted none of these of course! However I remember being in Penneys (aka Primark in Ireland) last year and there were up to 20 cash registers on the go. Mind you it was near Christmas. Then I'm told that Penneys in my location in Ireland have expanded into the upper floor of another shopping centre. I also hear about this being a very popular location for women's clothes. Now I read about the online sales initiative and expansion in UK. I am also intrigued by the idea that inflation may drive people to lower cost retailers. In short, I think Primark is a good investment. I have two reservations. Firstly, I don't know what % of ABF Primark comprises -maybe someone can help me here?. Secondly, the yield of 2.8% is low for me. Everything that I see seems to add up to a convincing case to buy this share. Any comments appreciated!
Nothing not to like here so far as I can see. About time these started to re rate. Bricks and mortar retail may be dead in places - but Primark is the clear exception and now with some online presence at last. The diversity and pricing power in the rest of their stable is the icing on the cake for me. Very comfortable holding these.
Regardless of what Goldman's think, this is a solid company with good wealth preservation charateristics. The family ownership stake and charity relationship mean they are unlikely to bet the bank on any one deal etc. It won't shoot the lights out or double in value in a year or two, but should provide solid returns over time. I liked this company for a while, but I didn't want to pay £30. Very happy to get in at around the £15/£16 mark. I think this will get back to £18-£20 in the next year or two. Then its all down to whether we grow / maintain margins etc post recession. I think these shares will be considerably higher in 5 years - I'm looking for around 8-10% per annum total return.
I don't know of these analysts keep their information back from private investors, but they always seem to be behind the curve. If this is really what they think and when they think it, PIs definitely have an advantage over them!
Goldmna Sachs switched from Sell to Neutral, price target from 1460 to 1900. Talk about poor timing, if you were following their advice you would have been selling into the rise until today. Predicting what has already happened isn't particularly valuable.
Popular budget retailer Primark announced on Friday it will invest £140 million in its stores in the United Kingdom. The proposed capital will be spread over a two-year period, with the high street brand creating more store openings and about 850 new jobs.
Primark also opened a new click-and-collect online service last week, showing its ongoing commitment to its customers.
Founded in Dublin, Ireland, Primark is a subsidiary of Associated British Foods and has stores in the United States and Europe.
Baha Breaking News (BBN) / KB
Just a reminder - 16th Mar 2021 2464p , post pandemic. I see pretty much no reason once the inflation shock is priced in why this should not go to at least back there by March again.
All still understating it. Surprised someone hasn't broken ranks yet and gone with a 2000p + forecast. The results and the buy back surely imply a full recovery, if not to pre-pandemic levels then certainly to a price far higher than today.
Looks like all shorts now closed.
Barclays raises AB Foods price target to 1,700 (1,500) pence - 'equal weight'
Deutsche Bank raises AB Foods target to 1,600 (1,575) pence - 'hold'
Goldman Sachs raises AB Foods price target to 1,420 (1,380) pence - 'sell'
NAV 1464p