Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Ex div
What warrants a 3% drop on a share like this? Did noone go to the pub yesterday or something?!
Bought in yesterday, after a long absence. Good to get it right for once ahead of results. The low SP and high div make GNK attractive to me.
Divi maintained and revenue just about on course. Good value now at these SP levels imo.
Net debt GBP2,017.9m GBP2,118.9m +GBP101.0m
Net cash flow from operations GBP153.5m GBP96.9m +GBP56.6m
Free cash flow(2) GBP25.4m GBP10.6m +GBP14.8m
Brewing something special for investors?
Greene King (LSE: GNK) the pub owner and brewer is another FTSE 250 stock that’s been beaten up by investors over the last 12 months. Again, that puts it in a potential sweet spot, offering a high dividend yield at over 6.5% and also a low P/E at just under 8. The share price, which had jumped up to 642p in June, is back down at around 500p now.
New leadership of the company could provide the catalyst for future growth. This month, the CEO of 14 years called time on his leadership of the company. A successor is expected to be appointed early in 2019. Although Brexit seems to be weighing on this UK-focused company, there are reasons to be optimistic about Greene King’s prospects. One of these is that the company is starting to once again grow earnings and analysts have said the company is undervalued.
Also, the September trading statement showed that like-for-like sales were up 2.8% for the first 18 weeks of the year. Along with disposals, which should drive profitability and therefore protect the dividend, I think the business is getting itself into shape and trading and sales are improving.
For me, both Saga and Greene King are looking good value. The low P/E ratios of both alongside relatively high dividend yields provides a margin of safety for investors who buy the stocks. It may a bumpy ride for investors, as is always the case with out of favour or recovering companies, but thinking longer term, investors could be handsomely rewarded for backing these companies.
1/4 of milllenials don't drink though? we're doomed?
Would a pragmatic approach be to release some of the spirit pubs and gradually reduce debt whilst improving cashflow? - The dividend is still very attractive surely?
I'm thinking yes. Expecting a good SP performance in December.
If
" As we announced recently, the business is performing in line with our expectations and ahead of the market."
is true then there ought to be a nice rise in SP on 29th?
https://www.ft.com/content/004c3726-e19e-11e8-a6e5-792428919cee
"The Spirit pubs — bought from investment-shy private equity owners — have not performed as well as hoped. The deal left Greene King with net debt of £2bn. That represents 4 times ebitda (a cash flow proxy), not onerous for a group with a valuable freehold estate. Still, servicing that debt slurps up nearly a third of operating earnings. On top of that, add cost inflation — including higher minimum wages and business rates — of up to £50m for 2019. Greene King is targeting up to £35m in savings. That would explain its cheap valuation. It trades on a forward price earnings multiple of 8, half that of sector darling JD Wetherspoon."
Here's the link to that piece that came out yesterday:
https://www.theguardian.com/business/2018/nov/09/embattled-high-street-retailers-call-for-help-as-closures-soar?CMP=share_btn_link
Note how Pubs and inns, top the losers board as the worst hit of all for closures in the retail sector.
Now if that update on the 29th is bullish and bucks the trend of doom and gloom in pubs then IMO the SP could fly in December.
Thing is the CEO has announced his departure BEFORE this update - could that be an attempt by the BOD to protect the SP if it's a bearish update?
Last heard from updates that all was pretty good-ish
so not expecting a poor update.
So big day on the 29th. Will GNK buck the bear trend in pubs???
Hi Sxx,
Yes, the SP looking bullishly sporty by this weekend close sonewhat.
Couple of concerns.
1) Trading update due on 29th of this month I believe. It's expected to be positive so my window of topping up on the cheap opportunity is closing fast.
2) CEO resigning appears to have been subsequently welcomed by the market. (Kitchen sinking opportunity next year on new CEO's review after he/she gets their feet under the table; take a look at what RMG's kitchen-sinking did to their SP by the new CEO's review in October).
3) Google this :
"Embattled high street retailers call for help as closures soar"
Look how Pubs and suchlike have come out as the worst casualties this year for closures (will post link and figures next as will lose this phone text if I flip to go-get now.
Think it's more to do with Wetherspoons being 13% down today.
Market didn't seem to like the long standing CEO before he announced he was stepping down.
Market doesn't seem to like the long standing CEO stepping down.
Excellent value now for anyone wanting to pick up a few GNK shares
Jumped or pushed......at least it’s a change. Let’s hope it’s positive.
GNK showing signs of waking Velo?
I gather Liberum gave it a "Buy" again yesterday, but yet to find out any more.
Would be nice to see debt come down some more as it's what started this slump when Berenberg downgraded?
Update on the September vouchers. Received mine today Oct 24th - so all September's out of date. Not a concern. But geezus! What a fight to get them.
Was informed they were arguing with inland revenue that as my shares are in a SIPP anything withdrawn is subject to taxation. But in the end the vouchers were allowed free of that threat. I just reckon they forgot about me and went round the office asking who's got a complete unused book? - And whipped it out of their hands and shoved a tenner in their face to shut them up. If you haven't had yours I bet that's where they are - dished out to backroom staff as freebies LOL!
Would be good if it could rise after interim trading statement at end of Nov.
Barley Crop shortage in East Anglia likely to have any effect going forward?
https://news.bloombergenvironment.com/environment-and-energy/beer-may-be-next-casualty-of-climate-change-as-barley-crops-wither
Past 5 years monthly cyclical records. I know GNK is not a cyclical share but average over last 5 years is high probability of a repeat performance if the "Santa Rally" makes it's annual show.
75% probability of average 5% gain for GNK over December. Yes, it could bomb instead. That's the usual when I post expectations. When I keep things to myself events happen as looked likely. Mention them on a BB and karma or whatever skewers expectations. Lol!
Velo,
Re: "I'm expecting GNK to fly in December" - why do you believe it will will fly?
I posted in August of holding off adding to my initial re-entry into GNK by posting of waiting until after September for a further cheap top-up.
And just in case, I left a 450p limit order running in the background on a you-never-know basis. Well I think that opportunity may commence to make an effort to show its face this week.
September only provided similar opportunity to some of the near-August XD lows to top-up, but unconcerned at not taking the low of August as I reckon I have until Dec 1st - as I'm expecting GNK to fly in December, but not expecting anything worthwhile for the SP (in bullish terms) during the remainder of October or November.
And if it doesn't , no matter as I won't have complete faith in GNK until high summer of next year. Whatever, want a cheeky low before Dec 1st. I think I'll get it this week.
(Still haven't received my vouchers; latest 'promise' is by tomorrow's mail post).
https://www.thetimes.co.uk/edition/money/ian-cowie-british-stocks-are-just-my-cup-of-tea-kjgb3frc5
Thanks for replies.
I am with HSBC investdirect. No one as yet has stated that they are also with HSBC but unlike me have got the vouchers
Now this is very interesting and just shows, to keep nagging them as foul-ups do occur. I still have not received any vouchers in my HL acc (nominee acc)
Chrisha1es below says he's with HL too,. and he received his vouchers on Monday.
What?!?
And Here's the reply I've just reveived from HL:
"Thank you for your message.
Greene King vouchers for Shareholders holding the Shares within a SIPP Account were received into Hargreaves Lansdown today.
These will be posted to Shareholders via 1st class post next week.
Kind regards"
Hmm... Only received today huh??? Methinks mine slipped off the back as funny it's always the same no matter which broker I use when I haven't received dividends it's always due tomorrow - and there they are on the very next working day - the day after I raise a query!
So, don't give up if you haven't received them, complain/raise a query. We're alll mostly using low-cost broker platforms. So there might be hiccups from time to time - keep up the pressure on your broker - not GNK.
As helpfully posted below somewhere - You must hold a min of 100 shares by/ on the 31st July.
(Check those two qualifiers first before contacting your broker)
Got a Halifax share account, you have to check/tick that you want correspondence, voting rights ect.
Vouchers landed in post no problem 2 weeks ago