Member Info for Nick1234

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.

I think the Jeffrey's broker note last week spooked a few people. They have a 300p target price which seems low to me. This should be over 400p all day long IMO.

Got mine and I'm with HL.

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.

Great set of results and surprised the SP hasn't responded much so far. Perhaps there will be a delayed response...

Unfortunately, I can't see it breaking out whilst inflation and energy bills are forecast to be so high. The concern over consumer disposable income is holding this share back.

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.

Yes it's the 5th. It can take slightly longer as the payment is coming from overseas (Luxemburg).

Why? On the whole, I think that Unilever's products are superior to their rivals or supermarket own brands. No doubt some will trade down as the cost of living crisis worsens, but for many Unilever goods are worth the extra money.

Sadly, I can't see the war ending any time soon.

Great set of results and pleased with the rise in the divi. Hoping for a bit of rise in the SP now.

Still waiting on mine from HL too. The have previously made divi payments after hours so will check later this evening.

Yuri.F As you can see from the RNS, the drop in 1st HY profits is entirely due to poor investment returns over the last 6 months.

Premium rate increases were 17% and the combined ratio improved to 87% which is excellent and shows great underwriting discipline.

Improved investment returns in the 2nd half of the year and in the 1st half of 2023 mean that this time next year profits and the SP will be significantly higher.

180p-200p is fair value IMO. Company is forecasting profits of c£800m for the full year yet the market cap is only £7bn. Seems massively out of proportion.

I actually bought in higher than this earlier this year as per previous posts on this page so not me trying to ramp.

Excellent trading update. This is still undervalued despite the recent rise.

Nice rise again today. The issues of the last 18 months are getting resolved slowly but surely.

Is JD also benefiting today from Sports Direct's results? Revenue up 32% there. Appreciate they are not identical companies but there is considerable overlap with sales of trainers and athletileisure.

Would not be surprised to see an acquisition soon. Home Bargains would be a great fit but probably too big. Farmfoods not impossible but I think an overseas acquisition is more likely.

All valid points. We potentially could be at or near the peak of inflation; the price of oil is down 20% from its recent peak, iron ore is down 50%, wheat and copper are down by around 40%. The NI reductions will also feed in to pay packets from this month. True, the energy rises in October will hurt a lot of people but the new Tory leader will have to address this is in one form another.

It's hard to take a contrarian view when a share is down 80% in a year, but whilst down side risk is still there, there are some signs we may avoid (a technical) recession and keep inflation under wraps. If we can do that and the shorts reduce then the next 12 months could be interesting.

The word mortgage comes from the French word 'mort' meaning death I.e. payments till you die or a lifetime mortgage.

The prospect of borrowing money for 30, 40, 50 or more years is completely soul-destroying. I do feel sorry for young people trying to get on the housing ladder.