Associated British Foods Share Discussion Threads

[undervaluedassets] 23/4/2021 08:28

That the company has been profitable at all during the pandemic is remarkable. Primark was shut with no online offering... just shows the level of profitability here under normal conditions.

If profits at Primark were down by 90% during lockdown..well simple mathematics says the percentage they are going to jump by will be hundreds of percent now we are opening up.

It is a statistical certainty

[essentialinvestor] 22/4/2021 16:02

net, with respect you need to take a look at a longer term price chart for ABF.
It's founding family controlled and that may be a reason it's given to price volatility-
lower free float %.

To make a guessestimate in answer to your question- prior to results sentiment
was uber bullish, sometimes more difficult to make short term share price progress that being the case.

[netcurtains] 22/4/2021 15:53

Over the past few days of all my shares this one has easily taken the biggest hammering.

No idea why but I guess its something.....

Its pretty steep decline.

[philanderer] 22/4/2021 00:28

Yes, ABF a solid hold for me :-)

[undervaluedassets] 21/4/2021 15:10

It's fine. They move in on Top Shop territory among others. And have a larger slice of a much depleted high street .

Meanwhile the food and the sugar business are a nice back stop.

[netcurtains] 21/4/2021 14:42

yeah whole market is going a bit pear-shaped. I'm waiting for everything to settle down a bit before I put more into the market.
No rush.

[essentialinvestor] 21/4/2021 13:37

Looking for a move back above £24, however

a bit cautious on markets atm given the very quick gains since November.

[kirmich] 21/4/2021 13:31

Very happy to finally be able to buy in after what i thought were excellent numbers considering the situation.

Ideally i hoped it to go to 21£, but was too greedy in the past. Half a position.

Numbers reminded me of Inbev numbers and Wynnstay numbers recently, where there also was an initial (very strange) drop, after excellent numbers.

[philanderer] 21/4/2021 09:52

GOLDMAN RAISES AB FOODS PRICE TARGET TO 2,700 (2,680) PENCE - 'NEUTRAL'

[essentialinvestor] 20/4/2021 14:56

Need to keep in mind multiple European mainland countries are dealing
with new Covid surges and that may slow Primark's recovery.
UK is the profit hub but multiple country exposure.

[undervaluedassets] 20/4/2021 14:09

How the numbers and the fall in profits could come as "a surprise" is beyond baffling.

The surprise to me is that there were any profits at all not losses.

The strength of the company can be measured by the fact that they are going to repay all furlough government cash AND have reinstated the dividend. Those 2 things alone are " the surprise".

[babbler] 20/4/2021 13:40

https://mobile.twitter.com/IGcom/status/1384485698321862659

[essentialinvestor] 20/4/2021 13:39

Phil, how many times have we seen this with ABF, 4/5% falls on updates,
it's been a pattern for a while now. Wider UKX lower today adding to that.

Fair to say that expectations for ABF were already very high.

[philanderer] 20/4/2021 13:30

Commenting on the results, Richard Hunter at Interactive Investors said the company was being run "carefully" and pointed to profit-taking after a 41% run in the share price over the last six months as the reason behind Tuesday's fall.

"Even so, with the way ahead beginning to clear as lockdowns ease, the market consensus of the shares as a strong buy suggests that AB Foods will be well placed to pounce on the recovery."

ShoreCap's Darren Shirley also sounded a positive note on the stock, noting how its shares were changing hands on an enterprise value-to-earnings before interest, taxes, depreciation and amortisation multiple of about 8.0-9.0 times.

In his opinion, such a "strong and high-quality" business deserved a double-digit multiple.


[...]

[phillis] 20/4/2021 12:44

this is what is happening

[essentialinvestor] 20/4/2021 12:13

Flipped the earlier lot and back in again under 23.76.

[undervaluedassets] 20/4/2021 11:58

apart from JD. no-one else on the UK high street will have results like these.

[philanderer] 20/4/2021 10:59

CREDIT SUISSE RAISES AB FOODS PRICE TARGET TO 2,610 (2,500) PENCE - 'OUTPERFORM'

[bolo25] 20/4/2021 10:51

Coverage on today's ABF results here

[philanderer] 20/4/2021 10:37

Sell on the news I suppose. Dividend reinstatement already discounted by the look of it.

[netcurtains] 20/4/2021 10:02

Phillis - we're both on the same page
you either understand shopping or you dont.
😊

[phillis] 20/4/2021 09:33

that must be why there are huge queues to enter the shops when they open...

[porsche1945] 20/4/2021 09:21

2net

They are not winners, they are just the remaining few but they still have the same flawed backward looking tired business models, huge store estates with zero value, massive staff liabilities, these bricks and mortar clothes retailers are doomed and just bolting on a website wont save them as M&S has found, the online players have built their retail “ chassis “ around the web without the rest. Declining or non existent dividends, perma threat of covid closure which will last years and shrinking margins, need to invest in S&P growth not ftse 350 certain death.

[netcurtains] 20/4/2021 08:55

allonblack: The way I see it is:

Frasers, Next, Primark, M&S are the winners because they are "the last men standing" in womens high street fashion.

GAP has gone. Debenhams have gone. Topshop has gone.