Associated British Foods Share Discussion Threads

[chartwise] 09/5/2006 09:35

ABF Long 762.

Bouncing from strong support. Indicators oversold. Cud see good gains from here imo.


free stock charts from ADVFN.COM

[cambium] 09/5/2006 09:13

boing................how predictable

[cambium] 08/5/2006 16:09

THe buyers came at £7.50

[cambium] 01/5/2006 12:22

There is good chart support at £7.50

[big investor2] 01/5/2006 02:07

All very well having targets of 950p based on the fundamentals. But look at the charts - its in a nosedive. This conglomerate has surely had its day. The market is crying out for a breakup/demerger - a separate listing for Primark.

[gateside] 29/4/2006 07:03

Linhur

Another bullish brokers note, this time from Panmure Gordon with a buy rating and 950p target for AB Foods.

[linhur] 28/4/2006 18:29

Gateside

May be the institutions are looking at the rapid decrease in sugar profits which have not been replaced by profits from recent acquisitions together with the bakery problems in the UK and Australia.Perhaps a reflection on the new generation of managers.

If George Weston is going to carry on acquiring businesses he has got to get better profitability out of them rather than seeing a good strategic fit.In other words he has got to be tougher managing the business.

Can see a return to 600p if the expected market regression comes about.

Just my 2p

Linhur

[gateside] 28/4/2006 09:00

Looking way oversold now... but when is this going to stop dropping?

[gateside] 27/4/2006 11:59

AB Foods Only Runner Left In Illovo Race

1246 GMT [Dow Jones] AB Foods (ABF.LN) is now the only company left in talks with South Africa's Illovo Sugar, notes an analyst. Says if the deal does go through it will be a positive for AB Foods. "It's only a small deal, but it does give it access to cheap sugar for the European market," he adds.

[hosede] 27/4/2006 10:15

Agree Belize
sold out at 850 a few weeks ago and bought back in today at 770. Catching a falling knife I know, but 750 looks a very solid support level. Loss of the EU sugar subsidy may reduce profits in the next few of years, but long term it seems to me sugar prices are going to climb as bioethanol becomes a more and more important fuel.

[belize1971] 27/4/2006 07:36

I'm no chartist but the 780p point looks very interesting - it bounced down off it 3 timers in early 2005 and then, after breaking through, bounced up from it a couple of times later in the year.

[linhur] 20/4/2006 21:07

I am disappointed in the interim figures and downgrading of profits for the full year.ABF seem to have a rash of problems that seem to be affecting a large number of areas in their global business.

They still seem to have problems in Australia which have lasted a long time (5/6 years)which started with poor performance with the meat business and has now spread to the bakery side.Australia has taken up a lot of management time and effort which only seems to end up with more rationalisation and more problems.

ABF have spent nearly a billion pounds in the last three years on good businesses which have replaced the profitability of British Sugar.However as we are still in uncertain times the cushion of £1bn cash has gone.

The only driver of profits at the present time is Primark which has done exceedingly well in a highly competitive sector.

I have been a holder of ABF shares for some time buying in the 400/500p range but I got nervous last summer and top sliced at 775p.

I suspect I shall continue to sit on my hands and have another look after the full year results or if the share price falls in a market downturn.

regards
linhur

[gateside] 20/4/2006 12:03

Thanks Cambium


More broker updates today - both are positive

Goldman has outperform on AB Foods
Deutsche says buy AB Foods, raising the target to 950p

[cambium] 20/4/2006 06:58

Have a look at the spreadbetting thread for an interesting chartist view.
(SBET)

[gateside] 19/4/2006 21:20

This article refers to ABF as a 'Brilliantly Managed Company'.

How many companies can you say that about?




AB Foods First-Half Net Drops on Primark Expansion (Update4)

April 19 (Bloomberg) -- Associated British Foods Plc had a larger-than-estimated drop in profit after expanding its Primark clothes chain and said higher energy prices will crimp earnings for the rest of the fiscal year.

Net income in the 24 weeks ended March 4 fell 16 percent to 166 million pounds ($296 million), or 21 pence a share, the London-based company said today in a statement. A Bloomberg survey of five analysts showed a median estimate of 184 million pounds. Shares of the foodmaker, which owns Twinings teas, slid the most in more than six years.

Associated British Foods is adding to its apparel business as the unit raises same-store sales at the same time that some competitors such as Next Plc are reporting lower revenue. The company also has an agribusiness division that includes British Sugar, where profit will be hurt for the rest of this financial year by changes to European Union rules on the sugar market.

``Much as expected, this is a tale of two divisions - sugar and Primark,'' Richard Hunter, head of U.K. equities at Hargreaves Lansdown in London, said in an e-mailed statement.

Changes to EU sugar rules may weigh on earnings next fiscal year as well, the foodmaker said. Profit after tax will drop in this year's second half because of interest costs linked to revamping stores bought from Littlewoods Plc for Primark. Associated British Foods agreed in July to pay 409 million pounds for the 120 outlets.

`Brilliantly Managed'

The stock fell 54.5 pence, or 6.5 percent, to 788.5 pence in London, leading losses in the Dow Jones Stoxx 600 Index. The percentage drop was the biggest since March 29, 2000. The shares have added 4 percent in the past year, less than the 18 percent gain by the 14-member Bloomberg Europe Food Index.

``The share price appears to have fallen off a small cliff today because of the results,'' said Jeremy Batstone, an equity strategist at Charles Stanley & Co. in London. ``AB Foods is a brilliantly managed company, and I would use any weakness to pick up stock.''

In addition to increasing energy bills, higher oil prices have raised costs for the plastics used in packaging and for transportation, hurting earnings across the food industry. Cadbury Schweppes Plc said in October it expected to miss a profitability goal, and Kraft Foods Inc. that month cut its annual profit forecast, both citing energy expenses.

Kingsmill, Mazola

First-half sales at Associated British Foods rose 10 percent to 2.89 billion pounds. A year earlier, the foodmaker earned 198 million pounds, or 25.1 pence a share. In addition to Primark and its agribusiness subsidiary, the company has a unit that makes foods including Kingsmill bread and Mazola corn oil and a food- ingredients division that produces goods such as yeast.

Half-year sales at Primark stores open at least a year gained 6 percent, the company said. Next, the third-biggest U.K. apparel retailer, said last month annual same-outlet sales at shops not affected by openings of new stores nearby dropped 2.9 percent.

``We expect that the major investment in Primark will generate good returns which will build progressively as the new stores open and trading develops, and that there will be a substantial profit contribution in 2006/7 and beyond,'' Associated British Foods said.

The company said March 15 it was in discussions that may involve buying a 51 percent stake in Illovo Sugar Ltd., the biggest African sugar maker. The talks continue, Chief Executive Officer George Weston said today in a telephone interview.

The current fiscal year ``has been a good year'' though energy costs have climbed and business has been difficult in some markets, the CEO said. The company is acting to improve its bakery business, he said.

The foodmaker raised its first-half dividend by 4 percent to 6.25 pence a share.

[belize1971] 19/4/2006 11:54

Cheers, useful link! ABF now on my monitor list ;-)

[gateside] 19/4/2006 11:49

belize...

I took them from the following link, which was issued today, so I am assuming they were all updated this morning.

[belize1971] 19/4/2006 11:45

Do you know whether those updates pre or post todays results ? Thanks

[gateside] 19/4/2006 11:38

Summary of broker updates

UBS reiterates buy AB Foods (1015p target)

Panmure Gordon says buy AB Foods (950p target)

Merrill says buy AB Foods (925p target)

ABN says hold AB Foods (875p target)

Numis says hold AB Foods (825p target)

Williams de Broe reiterates hold AB Foods

[atlantic53] 19/4/2006 06:55

The results are poor 16%drop in earnings per share.As a long term buy a good entry point but short term i would expect weakness...