RDSA.L Share Price (RDSA)

Great post cllwyd, positivity needed at mo !! You could include BP, BATS, IMB, LGEN, PHNX, PSN and BDEV !!!

Mon, 24th Jan 2022 12:13
(Sharecast News) - Analysts at Morgan Stanley sounded a 'bullish' note on the outlook for the FTSE 100, highlighting its greater 'defensive' properties relative to rivals, higher dividend yields versus global peers, exposure to energy and record low expectations for growth in the profits of its constituent companies.

On just over two-thirds of the occassions that global equities had fallen over the past two decades, the MSCI UK index had outperformed MSCI Europe.

Under the assumption that inflation-adjusted bond yields would rise to -0.1%, they estimated that MSCI UK was set to outperform by approximately 12%.

And changing hands at 12.6 times' earnings, London's top-flight index was the cheapest major index when compared with the last 10 years.

Furthermore, consensus forecasts for earnings per share growth for MSCI UK of less than 3% felt "very low" to them.

Regarding its dividend payouts, MSCI UK was trading on a dividend yield of 3.6%, which was 150 basis points more than for the MSCI Europe if the UK were excluded.

The UK also stood to benefit from rising oil prices, because 25% of UK profits came from the energy sector, they pointed out.

At the individual company level, they singled out eight large capitalisation 'overweight' rates stocks that had over 10% upside left to their target price and the best "bull-bear skew".

Those included AstraZeneca, Diageo, Shell, RELX, Lloyds, Prudential and Vodafone.

All told, they had a 'buy' recommendation for the FTSE 100, labelling the investment case "compelling".

Manofleisure which IT would you recommend?

https://www.argusmedia.com/en/news/2293109-iea-tweaks-oil-demand-projections-higher

"If demand continues to grow strongly or supply disappoints, the low level of stocks and shrinking spare capacity mean that oil markets could be in for another volatile year in 2022."

RDSA is still cheap relative to the oil price. I looked back at how many barrels of oil it takes to buy a single share in RDSA since 1988. Summer 1988 it took 25-28 barrels to buy a share.

The early 90s saw valuations creep up to 34-38 barrels per share. The valuation hit just over 40 bbls super share a fair few times in 1993, spending a lot of H2 1993 between 46-48 bbls. September 93 was the first time shell’s shares were worth 50bbl but this increased to 60bbl in December 93. Feb 94 was the first time valuations reached 70bbl

Valuations remained this high for some years before reaching 90bbls for the first time in July 97. 100bbl was reached in December in the same year. That’s one share of Shell worth 100bbls oil

By Summer 98 valuations reached 134 bbls

Fast forward to recent times, valuations in 2019 averaged 37.22bbls per share. 2020 averaged 32.94bbls.

Today’s valuation? 1 share is worth 21.36bbls

She’ll should go much higher from here