Member Info for Laughton

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."

Looks like a good result to me and company can now move forward without this hanging over its head.

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/

It just looks too cheap so I've taken the opportunity to pick up a few more.

Walked past outlet in Brighton yesterday at 6.00pm. Looked rammed and people queing to get in.

OK - I appereciate that was a Saturday evening so not typical of other days of the week but helped keep me confident.

https://www.musicweek.com/digital/read/spotify-paid-out-7-billion-to-the-music-industry-in-2021/085499

https://www.musicbusinessworldwide.com/free-music-streaming-worth-4-6bn-to-the-record-industry-in-2021-and-3-other-key-insights-from-ifpis-latest-global-music-report/

https://www.musicbusinessworldwide.com/global-recorded-music-revenues-hit-25-9bn-in-2021-up-18-5-yoy/

Hargreaves Lansdown & iDealing both paid on March 15.

https://www.telegraph.co.uk/investing/shares/questor-fever-trees-adaptability-will-enable-overcome-inflationary/

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"

https://www.musicbusinessworldwide.com/why-are-hedge-funds-urging-songwriters-to-sell-their-catalogs-right-now-think-about-it/

I rather fear that many will have read it wrong and assumed SONG are now the owners of the Leonard Cohen catalogue and hence pushed up the price today.

I'm braced for when realisation sets in.

Yes, sorry FiniteElement. I was being sarcastic.
I agree - the worry is that MM now has a nice big source of money and will use this to buy catalogues at "our" expense. I guess we have to hope that time will roll on and we will eventually benefit from the crumbs of future Blackstone acquisitions.

https://www.theengineer.co.uk/itm-power-gears-up-for-green-hydrogen-revolution/