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A small boost to the share price on the back of the IC article which was very positive. Hopefully, if more people know about the company it will increase liquidity and reduce the spread.
Apologies, the last sentence of my previous post is wrong. As pickled Peck has pointed out there would have been decent growth in the Like for Like sales even without the currency headwinds.
But i still maintain that today's fall is at least in part due to the stronger Pound. That, and perhaps a move out of defensive stocks.
It's because of the strengthening Pound. Fellow global consumer giants Diageo, Unilever and Coca-Cola HBC who make most of their profits overseas are all down by between 2.5 and 4% too.
The RKT 3rd Quarter results were massively helped by "currency tailwinds" according to the update. Take that away and like for like growth is non existant or even down.
Ultimately, if the BoE keeps increasing interest rates then it will bring down inflation......by causing a massive recession. It's the monetary equivalent of using a sledgehammer to crack a nut. Mortgage costs, job losses, house price falls, increased poverty etc will be the collateral damage suffered by millions from this crazy policy.
As mentioned above, this bout of inflation is being caused by supply issues and NOT excessive demand that needs dampening. There must be other ways to handle it. Of course, if Putin snuffes it tomorrow, the escape route would be a bit more straightforward.
Yep 100% agree. I doubled my holding when it dipped to 1500p.
I see this as a long term hold and there is scope for plenty of growth in the emerging/developing markets.
Good trading share too, especially with no stamp duty payable.
Absolutely staggered by the fall here over the last couple of days, thought we had hit the bottom but some people are clearly panicking. The news yesterday that the country is probably in recession is probably driving it lower but surely that has already been priced in. 140p to be the pivot?
Great trading update which has delivered in line with expectations. To still be forecasting full year results to be in line with last year despite all the economic headwinds is very encouraging.
Surprised at the drop first thing this morning. Should be pushing higher.
This the reason for today's drop:
“Germany’s producer price index for August soared by 45.8% year-on-year, sharply outpacing forecasts for 37.1%. Month-on-month the figure rose by 7.9%, almost five times the forecast for 1.6%, signalling red hot producer inflation in the eurozone’s largest economy, well above analysts’ expectations. Japan’s inflation rate also accelerated to 3% in August, the highest reading since September 2014, driven by soaring food and fuel costs.”
I was hoping we were starting to see inflation level off but it doesn't look that way. Still, I agree, this is oversold.
BBOX is now trading at a 29% discount to the NAV. Industry peer Segro (SGRO) is now at a simlar discount. Does this mean that investors are expecting commercial property prices to fall by this amount?
Or is that too simplistic? I appreciate that there are other pressures on the business e.g. Higher interest rate, pressure on tenants which could drive down rent and increase voids.
Thoughts welcome.
Is it the new store that has only been open 10 weeks? Perhaps that has something to do with it?
I don't think this is a cause for concern. B&M has excellent relationships with all the large food, drink and toiletry companies e.g. Kraft, Unilever, Heinz, Warburtons, Coca Cola etc. These companies like working with B&M because they will take stock with a short sell by date or with old/damaged packaging.
I think B&M shoppers are less fussy over the stock in store, and if B&M can't get a certain item they can usually get something similar or get something else and put that on the shelves without too much disappointment from customers.
Hi Nala, the drop coincided with the release of the US job/payroll data. The numbers of people on the payroll were higher than forecast meaning that the labour market will be tight and inflation even higher. The Fed will have to increase interest rates faster and further to counter this.
Rising interest rates are not good for a company like BBOX which has £1.4billion of debt. More money being spent on interest repayments means less profits and lower dividends. The same applies for their customers/tenants which could put pressure on rents and cause vacancies.