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Liontrust: Fever-Tree onshoring will support growth
Fever-Tree (FEVR) is supporting its growth plans by investing in US domestic operations after the pandemic highlighted the fragility of global supply chains, says Liontrust’s Chris Field.
In an insight letter for his £394m Liontrust UK Focus fund, Field, who joined Liontrust this month as part of its acquisition of Majedie Asset Management, highlighted the shift companies are making to onshore their operations after the Covid-19 pandemic made businesses wary of relying on offshore suppliers and manufacturers.
While businesses, like Fever-Tree, face a lengthy process in onshoring and the potential for ‘inflationary consequences’, there is a pay-off.
‘These pressures should ultimately be balanced by lower shipping costs, better management through tools such as artificial intelligence, and coordination between competitors, reduced disruption risk, and lower carbon emissions,’ he said.
‘Some of the world’s largest businesses are already making inroads, and this process is occurring at holdings such as Fever-Tree, with the business building domestic operations in the US to support its growth plans.’
Shares in Fever-Tree closed down 0.1% at £17.78 on Thursday, having slid by more than a third this year.
"After a big drop, Games Workshop shares once again offer a high return on equity at a compelling price" - INvestors Chronicle
https://www.investorschronicle.co.uk/ideas/2022/04/13/games-workshop-sheds-its-fantasy-valuation/
Great - but isn't this bit depressing:-
"The government confirmed in the energy security strategy, published yesterday, that it would make a final decision on blending hydrogen with gas in the grid by the end of next year."
No need to worry. Direct quote from today's Times:-
"The Boiler Upgrade Scheme (BUS) offers a grant of £5,000 towards an air source heat pump, taking energy from the outside air and turning it into electricity"
Is it any woder that Boris & Co can't see the way forward?
As an ITM investor you probbly already know all this, but sometimes it helps for a refresher. Maybe copy and send to your MP - as the ad says "every little helps".
You probably have to register but it's free.
https://morningporridge.com/blog/blains-morning-porridge/guest-post-from-brett-morris-would-you-like-hydrogen-with-that/
Another piece of the jigsaw falls into place:-
https://www.reuters.com/business/argentinas-senate-gives-thumbs-up-45-bln-imf-debt-deal-2022-03-18/?taid=6234087352440400016c0997&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter
Food for thought:-
https://morningporridge.com/blog/blains-morning-porridge/guest-post-miles-morland-how-green-is-your-telsa/
I guess it's a profit warning but:-
I like this:-
"Recommending a special dividend of 42.90 pence per share"
and I like this: -
"Notwithstanding these near-term cost headwinds, the long-term opportunity looks even more significant than it did a few years ago"