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Every time I consider buying into DGE, I am reminded of the
Every time I consider buying into DGE, I am reminded of the
Every time I consider buying into DGE, I am reminded of the
In theory the value of the business is unchanged by buyback but as there are fewer shares after a buyback, the profits available for dividends per share increase as there are fewer shares to pay dividends to. With respect to company assets, If you take the logic to absurd levels, if a company buys back large quantities of shares then eventually you might be left with one single share worth the same as the company. Thus the share price should increase as the net assets of a company are divided by fewer shares, and the dividends should increase. In practice, one has to ask if the business had better purposes for using the funds, like growing the business, and ultimately share prices are largely determined by market sentiment which should be rational but is largely determined by emotional sentiment and group think. Broadly shareholders benefit.
Hi, what would happen to SP if they execute the buy back scheme. Will it go high? Pls explain anyone.
@gym121 i already hold & trade Unliever & wanted a bit more diversification.
I usually add Unilever when the price drops to around 3800 or below & i sold the last tranche out at round 4400p.
Hi star
i did buy small amount and out today 2 percent loss to buy caspian oil..
No on knows but my opinion upside her limited and as u say might not even break out. This and unilever have the "moat" of uncopiable products people wont change from. Im not so sure. Caspian still risky but much bigger upside
imo.
DGE, requires to close above midpoint 2951.75, of midway value between recent peak and trough, to have a chance at reaching recent peak. Relative strength index shows negative divergence between last two peaks, implying a likely sp, fall.
The January low and higher February low, defined an up trendline, however the March low, brought into play, a much reduced up trendline, in terms of reduced angle. February and March lows, are much in line, implying that DGE, may now be in a sideways congestion pattern. If the sector is not breaking upward, there is no impetus for DGE.
Unilever or diaggio... ??? Diaggio has had lower lows higher highs for 2 years, last couple weeks looked as though may have bottomed but then down again. Any reason why it should turn round right now ???? Maybe unilever is better.!
As of last week, I hold Diageo shares for the first time ever.
I usually like a higher dividend yield, but thought the recent decline in the SP offered a decent opportunity to invest.
Times Business today has an article on potential takeover targets due to low valuations in London. One of the companies they feature is Diageo:
“ Diageo
Banking sources took the unusual step this month of denying there was any dealmaking afoot when The Times reported rumours of a bid for Diageo. The FTSE 100 drinks maker had a wobble recently when it issued a profit warning, started a search for a new chairman and brought in Rothschild's bankers to serve up Pimm's to new - investors. Jefferies' analysts said they had no idea if anyone would want to buy Pimm's.
Debra Crew, Diageo's new chief executive, has been having "tough conversations" about how to restore the company's reputation as a solid stock. Diageo's share price now sits at £29.86 and, with food and - beverage businesses attracting average premiums of 41 per cent, it is thought that the guardian of Guinness could change hands for £94 billion.“
Added in 2700's 2800's & today 2900's
A quality share to have in ones PF
Now accounting in USD .... 👌
gla
Bottom in?
That's made me feel better as I was toasting Mr Burs with Lagavulin.
On their results: pretty much as expected I think. Disappointing, but hopefully just a minor blip in the scheme of things. They've just been on Business Live and seem to be pretty optimistic about the future.
Trouts yes, tried them all, Singleton not as peaty as the two you like. If peat is your thing, try Laphroaig (if you haven’t already).
On DGE, I think many of their brands are in danger of rapidly losing market share because of the transition to more premium brands, despite there being a cost of living crisis. Gordon’s, Captain Morgan, Smirnoff. I’d like to see a heavyweight like Diageo trying to sweep up a few of the smaller players, like DIS and EISB, to expand their brand portfolio. To my mind a much better use, in the long term, of their financial clout than share buybacks.
It went up a great deal the other day on the back of someone else's results, so a modest decline is probably not that bad (rather than expecting it to raise much higher again). I've given up trying to figure out rise and falls after updates, the market just seems to do whatever it wants.
Lagavulin is still my favourite, but prices are through the roof nowadays (seems the same with all brands). I've had Singleton, don't remember too much about it except I didn't buy a bottle at the distillery (I might have been whisky'd out on the trip) so probably not that keen.
Talisker and Lagavulin are my two favourites of their stable. Not tried "the Singleton" yet, the advertising put me off somewhat. Any whisky drinkers here tried it?
I totally agree.
"pubs are additional and I don’t feel have much impact"
I tried to help pubs sell their spirits on Burns Night! Trouble is I can never remember which malts are Diageo's
Interim divi 40.50cents
LAC ......Latin America customer/consumer down trading!!
Huge waist of Buyback cash verses today's close price & DGE states it's been returned to investors.
Markets always suprise me with results or trading updates.
gla
With all due respect who on earth cares about FTSE average when Diageo is better than 90%+ of other companies in the FTSE. The best spirits portfolio on earth. Optionality on EM growth. Look at its excellent ROCE, net income margin, cash conversion, etc, etc. Yes, they've taken a knock. And the market may well throw its toys out of the pram on Tuesday. But LT there are few other companies in the FTSE I would rather own. Diageo is anything but average. If the future is anything like the past the current valuation is a steal
Forgot to mention trailing p/e if the CAC is 22.6, and forward P/E is 16.9.
Still think DGE is going to fall on the news from reiteration of profit warning
The FTSE on Friday 26th Jan 2024 traded at 15 x
DGE trades at 17 -18 x based on possibly EPS of 151p.
Compared to KO which trades at 24
BUD at 20
PERNOD at 17
PEPSI at 28
It is still expensive to forward earnings for this yr versus FTSE average.
Let’s see what happens over this week.
Yep, a lot of dge drinks are purchased in supermarkets for home consumption. I have 4 bottles of spirits in the kitchen which are not mine (the other half’s) and 3 of them were dge… pubs are additional and I don’t feel have much impact at all tbh
Strip out Guiness snd DGE is a spirits business.
Many of DGE's products are consumed in the home.
How busy UK pubs may be tells you very little as a read on Diageo.