Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Dairy Crest supplies a third of the country’s milk, including all that sold by Waitrose and Marks & Spencer. Sainsbury’s and Morrison – but not Tesco – are key customers, too, as well as corner shops, hospitals and restaurants. But milk is a commodity and profit margins are low, so the company has to work hard to deliver returns to investors and keep customers and suppliers happy. The firm has made tangible progress towards that end and Chief Executive Mark Allen intends to lift the milk division’s profits from about 10m pounds to about 30m pounds over two to three years. Dairies are being merged, new machines have been acquired that process milk faster and more efficiently and the business has invested heavily in software that will ensure it transports milk more cost-effectively. Furthermore, the firm is doing much better with dairy products. Last year, Allen sold French spreads firm St Hubert for 344m pounds, since when he has been looking for acquisitions. For the year to this March, brokers expect profits of 50m pounds rising to nearly 60m pounds in 2014. The dividend is forecast at 22p in 2013, rising to 23p in 2014, so the stock is on a yield of more than 5%. Lastly, milk prices have at least started to rise recently and the outlook is better than it has been for years. At 4001⁄2p, the shares offer good, long-term value. The shares should increase. Buy, says The Financial Mail on Sunday’s Midas column.
Good article & Midas buy recommendation: http://www.dailymail.co.uk/money/investing/article-2265123/MIDAS-SHARE-TIPS-Chance-cream-profit-Dairy-Crest.html
I am pretty sure that RoE is a good indicator of the share price for DCG, however I am not sure what method for the Terminal Value I should use for determining my target price. If I use the borrowing rate that DCG has, (5.18%) - then I get a fair value of 403p. However using the rate of inflation of 2.8% - the RoE share price estimate goes to a whopping 550p I'd be inclined to go for somewhere in the middle - around 450p for my sell price. What's your thoughts?
Spread your eggs Optimus. I can't believe what has happened to HMV. A lot of people have been stung. 1 chap bought £50k just before it collapsed! Ouch.
You could well be right Fernie, Its a great company but Ive parked mine up in AV for the divi for a while but will be back. Good luck all
I wouldn't be surprised if this share hits 450 in 2013. Fingers crossed! I'm holding on. New Year - New optimism. Unemployment is falling.
Sold at 404.57 for similar reasons hoping to be back in on the next dip. Good luck all
Just sold at £4 for a good upside. I will wait for a dip back to 380 and buy in for my usual £1k amout as still want to be in this share longer term, just had too much in one share before. gla
Yes Optimus, but I was lucky when I bought them last month and I hope to be lucky when I sell them next year. I think the drop was just pre Christmas profit taking. Enjoy the holiday everyone.
You seem to have been unlucky twice, but why the drop?
Too late Fagen, heart ruled head, bought back in yesterday @ 395.88 but I'm looking to keep them for the forseeable future. I'm glad i tried the stop loss on DCG and a couple of others, I might have been out of everything today. Good Luck to all.
You will have a chance today to buy back in..... there will probably be a few drops to 385p before it starts to rise again. Have you tried the new Cathedral City Selections NPD that's on TV. I hear that its selling so well that people are finding it difficult to find stores with it still in stock.
Hard luck jandya it could have only been at that price for a few seconds as it spiked right back up again but at least you now know that stop losses work , plus you have got your cash
Last night I set a stop loss for the first time ever. I set it at the 390 to protect a bit of profit into the New Year. Went out this morning and returned to find them sold at 388.9 . Now back up to 395. I live and learn. Merry Christmas and GLA
Dec 20 (Reuters) - Dairy Crest Group PLC: * Investec raises target price to 420p from 377p; rating buy
This share price has now over taken Robert Wiseman and really standing on its own two feet. It’s a “Cathedral “of a share in a “City” of its own without a doubt
Another good day, just touched £4, wonder what the peak will be on this share............
Excellent article. On a personal note this is by far my best share of the year 20.45% gain plus great dividends Thanks and well done to all the hard working guys and girls at Dairy Crest.
Dairy Crest Group plc announced that a dividend of GBP7.8 million (5.7 pence per share) (2011: GBP7.6 million; 5.7 pence per share) will be payable on 24 January 2013 to shareholders on the register on 4 January 2013.
Dec 7 (Reuters) - Dairy Crest: * Panmure raises target price to 410p from 385p rating buy
Its very quiet but the share price continues to creep up. Can not be long until an update on the cash strategy is needed. £300m in the bank earning nothing can not continue for long.............
Dairy Crest: Jefferies keeps buy rating and 400p target; Panmure Gordon maintains buy rating and 385p target.
got to be close to more consolidation in this sector and danone / lactalis and others must be looking eagerly at DCG now, cathedral city alone a 400m brand and with frijj, country life (only main brand british milk made butter) clover and utterly butterly it has to happen IMHO. Now that the debt situation is sorted thanks to the st hubert sale and the marginal milk part of their business seems to be undergoing a "profitable customer only" process i think the time is getting close to this british institution being the last to fall to European ownership.
Dairy Crest: Panmure Gordon keeps buy rating and 385p target.