George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
BBC News - The crews bracing themselves for a rise in electric car fires
https://www.bbc.co.uk/news/uk-england-66866327
Bought in again today.
Note the 99p price today was the same on or around 10.10.22 which coincidentally was the date when Gilts last peaked near 4.5 and the bottom for the FTSE 100 and 250.
Food for thought. Perhaps today is 12th October again. Let's hope so as need to see the SP rise.
BTW also on the 12 Oct 22 the US vix peaked and the Fear Guage was on Extreme Fear and SP500 hit its low. Significant divergence since then between US and UK 🙄
I am considering XSPS if S&P500 hits 4230 or over with a stop loss if SP500 goes over 4250. XSPS is inverse of SP500 and is available on Interactive Investor etc.
Not advice and welcome views.
Growth won’t come as easily as it once did for Pets at Home. Investors already recognised as much, pricing the shares at 17 times forward earnings, about half the peak reached during the pandemic.
The surge in pet ownership as people switched to home working had set a high bar for sales growth. Pushing forward revenue at a sustainably faster rate than pre-Covid has brought with it a step up in capital expenditure at a time when inflation and foreign exchange market fluctuations have incxreased operating costs. That stifled profit growth last year to just under 5 per cent, even after stripping out costs associated with its new distribution centre.
This year underlying profit is expected to be flat as the company absorbs higher costs together with a £60 million investment bill under a five-year plan. Last year was the peak in terms of spending, which will total £400 million.
The bulk is going towards opening and overhauling more of its shops and improving its website and data analytics, used to determine everything from where to open the next store to targeted marketing. The rest, about a fifth of total investment, will be in expanding the vets business, which by virtue of its smaller scale should lift sales at a faster rate than retail operations. It is the higher-margin vet practices that Lyssa McGowan, chief executive, thinks can help to raise the group’s organic sales growth to 7 per cent a year, ahead of the 4 per cent turned out by the pet care market, alongside a 10 per cent rise in pre-tax profit once the additional costs fall away.
Investors shouldn’t take fright at the prospect of subdued profits in the near term. Investment will be funded by cash generated by the business, of which there is plenty. Free cash rose to £93 million last year, which analysts think will be at a similar level this year. A net cash pile of £54.7 million was enough to declare another £50 million share buyback.
The group has taken its market share to 24 per cent, six percentage points higher than five years ago, while its return on invested capital has been consistently above 20 per cent. That should encourage investors that it is spending wisely.
ADVICE Buy
WHY Investment now could produce greater profit growth over the long term
https://twitter.com/_H00PZ_/status/1643170892560887813?t=unpyAw7KU1kfu2egFHcGLA&s=19
Shows ZNWD to the left (undervalued)
Posted by HOOPZ