Associated British Foods Share Discussion Threads

[philanderer] 11/6/2021 11:20

MORGAN STANLEY REINITIATES ASSOCIATED BRITISH FOODS WITH 'OVERWEIGHT' - PRICE TARGET 2,900 PENCE

[gateside] 02/6/2021 16:41

Ex-dividend 6.2p tomorrow

[undervaluedassets] 02/6/2021 08:23

baffling that no one talks about the food and agri businesses. They have been firing during the pandemic.

[kirmich] 28/5/2021 21:47

some people (with current inflation) more and more people will not have the luxury to worry about sustainability, but they will need affordable clothes

that is the sad truth of today's world, where the income of a lot of people is getting less and less sufficient

[netcurtains] 28/5/2021 20:21

m_kerr: The problem is "throw away fashion" is not currently fashionable.
Young girls want sustainability.

H&M has invested in "and other stories"


Has Primark invested in sustainable fashion?

[m_kerr] 28/5/2021 20:13

if primark makes roughly £1bn operating profit in normal times, with 15% ROCE, with a proven, massive expansion opportunity in europe, it's worthy of a premium valuation. H&M was making about £1.1bn net prior to covid, yet currently trades at a valuation of over £26bn. if primark was a standalone business with it's own costs, it would be making £750m net pre covid, which if valued in line with h&m would be worth almost £18bn, virtually the valuation of ABF as a whole. and there's good reason to believe primark will be making a heck of a lot more than £750m in 5 years time.

[netcurtains] 26/5/2021 09:14

BBC Weather ideal for shopping.
Its going to be 20c for yonks and yonks!

[weemonkey] 21/5/2021 04:23

I think the market prices this just for Primark

But It is a conglomerate isn't it with a great balanced offering. The food and Agri businesses have been charging lately.

Primark will now have its turn.

This "barbell" strategy is not fully reflected in pricing IMV.

[m_kerr] 18/5/2021 21:33

not at all UA, for the grocery business alone, i reckon a near 30% return on capital business growing at high single digits is worthy of a premium valuation. with operating profits of about £430m, that would be worth around £7-8bn in this market, maybe more. adding up each component of ABF, i reckon it's worth at least £30bn, compared to the current £21bn enterprise value. it's got no financial debt, which is very rare for company with a substantial food business. most are leveraged at around 8-10x net profits. there's a lot to like about ABF. it is a steady, long term compounder, with a very strong balance sheet.

[undervaluedassets] 17/5/2021 15:35

Net, don't think so.

Bit of profit taking on 'the reopening trade' which is taking a bit of a hit everywhere today.

It will be fine. Has a large portion of the high street almost to itself now.

Also no-one talks about the huge food, Agri and ingredients business. This company is not just about Primark. ABF have considerable pricing power here.



see pages 6 and 7 in particular. Set to be major beneficiary from the surge in commodity prices.

[netcurtains] 10/5/2021 17:29

KoP202: I think the wb is bad for ABF. No one wants the risk of tobacco style insurance claims.
OK to dabble at it for peoples health but not go mass market . It will end in very big tears if they do.
I suspect its that stuff that is holding the price back.

[kop202] 07/5/2021 08:22

ABF also growing wacky baccy for GW pharma who moved over to nasdeqGrowth sector ? if? and when UK opens up

[netcurtains] 07/5/2021 08:11

Still in balance but looks better than it has been....

[netcurtains] 06/5/2021 10:12

Looks like this is on the turn.... Touchwood..
Really low RSI
but coming up.

[philanderer] 05/5/2021 14:08

JEFFERIES RAISES AB FOODS PRICE TARGET TO 2,800 (2,300) PENCE - 'BUY'

[skinny] 29/4/2021 14:15

Yes RSI & MACD both looking to turn up.

[netcurtains] 29/4/2021 14:08

The RSI is very very low.
Probably ripe for a turn.

[essentialinvestor] 29/4/2021 13:58

ABF is not really a trading share. It's better viewed as a longer term
wealth creator.

One of the issues over the last 5 years has been a mean reversion on the multiple.

At one point during the supercharged Primark growth phase it was selling well
over 30 X earnings. In terms of trading the plum time to buy was before mid
November's positive vaccine news. It now looks in a consolidation pattern.

[netcurtains] 28/4/2021 22:12

Just seen the Equiniti takeover by an American hedge fund looks as if it is going ahead.

Also Hong Kong investors swooped on brewer Greene King. I don’t usually even get a vote but if I do I will vote against it.

We have sold off too much British industry and know how on the cheap.

Stand up for more shareholders’ democracy.

[netcurtains] 28/4/2021 19:08

M_kerr: Filtered.

[m_kerr] 28/4/2021 19:05

its clear to me that ABF is not operating in a way that maximises shareholder value over the long run, as it's persevering with it's businesses that will likely earn very low returns over the long run (agriculture and sugar). it should divest them and invest that money in expanding the parts of the businesses that are generating much higher returns.

i wonder why you're wasting your time on an investors forum the way you speak. go ahead and invest in companies with very strong trade unions and a commitment to not offshoring or an inability to. it'll trash your returns over time. go and look at the shares of BT, BA (IAG), royal mail over the last 5-10 years to see where that gets you.

[netcurtains] 28/4/2021 07:56

m_kerr: Its excellent that shareholders cannot bully owners as shareholders want SHORT TERM profits thus the EXPLOSION OF OFF-SHORING from 1995 to 2019 which more or less destroyed the manufacturing fabric of the UK.
Remember shareholders are evil personified - they want big money and they want it now.

The long term answer to shareholder greed is worker directors on boards who can veto all off-shoring for ever.

[m_kerr] 27/4/2021 23:17

this a very strong business, and the grocery and primark division are very, very good businesses, bordering on excellent. net cash balance sheet too. primark in particular looks like a business that will grow and grow for years to come (14% compound growth in sales since 2007 pre pandemic), at mid teens return on capital. the red flag with the company as a whole is they can resist any activism because of the controlling stake, which also means they've been able to hold on to much less profitable businesses like sugar and agriculture which depress their overall return on capital and business quality, and they can't be easily pressured into a strategy to maximise shareholder returns.