Associated British Foods Share Discussion Threads

[cambium] 26/6/2006 10:24

I agree, whilst Primark has been very rewarding for ABF, I don't think that it is core.

Surely there are number of options open to the board.

[gateside] 26/6/2006 10:21

Cambium... that would be an interesting way forwrad for ABF.

[cambium] 26/6/2006 09:23

I would like to see a sale of Primark to fund the Biofeuls development.

[gateside] 23/6/2006 18:57

From The Independent...

Associated British Foods is going to have to think about a name change before long. The group's Primark discount clothing brand is growing rapidly and already counts for 25 per cent of profits, and yesterday's deal with BP and DuPont could deliver blockbuster long- term results from the biofuels industry.

The deal, although unlikely to add anything to the bottom line this year, will see AB Foods combine its ingredient resources with BP's fuel refining and DuPont technology to produce biobutanol, which has an energy content closer to petrol than ethanol and gives better fuel consumption. House broker Panmure Gordon believes that if the initial deal is successful it could lead to greater development for the Wissington plant, currently under construction, and significant growth prospects with "two world-class partners".

Global markets have enthusiastically welcomed companies offering alternatives to traditional fuels, and some traders feel that the move by AB Foods could lead to a re-rating of the shares. UBS also reiterated its "buy" recommendation on the shares.

[stalliano] 22/6/2006 14:46

Interesting.Just seen on TV that the EU will be paying wine producers to pull up their vines due to wine overproduction .Wonder what they may start planting instead?

[idioterna] 22/6/2006 12:36

It's the note below that is going to drive this share price north in my opinion:

DuPont and BP to introduce 'biobutanol'

BP and DuPont signalled a breakthrough in biofuels on Tuesday, saying they were close to producing a plant-derived fuel more advanced than ethanol.

The new product, biobutanol, produces more energy than ethanol and can be used in vehicles more easily without modification to engines. Demand in the US for ethanol as an additive and alternative to petrol has led to record trading volumes for corn and soaring investor interest in ethanol companies.

The companies will make the fuel in an Associated British Foods factory that was being built to produce ethanol from sugar, with production of 9m gallons of biobutanol expected in 2007.

Whereas ethanol produces only about three-quarters of the energy of conventional petrol when burned, biobutanol could produce as much as 95 per cent.

Conventional engines can cope with fuels that incorporate 5-10 per cent ethanol, but can take much higher levels of biobutanol without modification. But biobutanol is more difficult and expensive to produce than ethanol.

BP and DuPont said they would use existing technology, "but enhanced", to make biobutanol at first, to get it to market quickly.

Work on more advanced technology would be completed by 2010. Tom Frost, associate director at Numis Securities, said the market for biofuels was looking strong. "It's clearly a benefit if you can use this without changing engines." Chad Holliday, chief executive of DuPont, said the fuel would not be competitive with petrol: "We have not been able to make [biobutanol] at a cost and a price point that our customers would use it. We believe we can accomplish that [in the future]."

George Weston, chief executive of Associated British Foods, said the biobutanol plant would cost £20m ($37m) to £25m and was being underwritten by BP.

The partners have drawn up plans to build larger-scale plants in the UK at a cost of more than £100m each, pending the results of a feasibility study. The plants will rely on surplus C-grade sugar, which up until recently was exported by British producers, before the changes to the international sugar quotas forced by the World Trade Organisation.

Mr Weston said the new outlet for the surplus sugar would be a boon for UK agriculture.

As well as providing an alternative to oil, biofuels reduce greenhouse gas emissions because the plants from which they are made take up carbon dioxide from the atmosphere as they grow.

[cambium] 22/6/2006 12:26

I thankyou

[gateside] 21/6/2006 09:51

0800 GMT [Dow Jones] UBS reiterates its buy rating on Associated British Foods (ABF.LN) following the announcement the company is collaborating with BP (BP) and Dupont (DD) in UK bio-fuel production. "This is an exciting JV for ABF with a major oil company and Dupont," UBS says. "Since January '06 ABF shares have fallen 14%; an overreaction in our view. We see the bio-fuel agreement as a positive catalyst." Maintains 1,940p price target.

I think they mean a 940p price target... but i would happily sell my shares for 1940p !!!!!!!!

[crontab] 15/6/2006 06:56

Time to start building a serious position here methinks.

[bot53693752467] 12/6/2006 11:57

this stock only ever seems to go down these days. is primark in the poo?

[crontab] 09/6/2006 14:09

Bloody hell fludde. Hope you can get back in.

[bot53693752467] 09/6/2006 12:12

any rumours about what going on here?

[gateside] 09/6/2006 11:38

Panmure says buy AB Foods with a 950p target.

That's a 32% premium to today's price!

[crontab] 09/6/2006 07:30

What an opportunity....just topped up down here.

[11entrepreneur11] 07/6/2006 04:51

i envite you all to my new website where you can discuss shares and world issues the site is:

[hosede] 06/6/2006 07:58

trouble with support levels is that in a bear market they get wiped out like beach huts in a Tsunami!

[andyj] 14/5/2006 10:13

With various worries surrounding the whole market right now, these look a very good bet to see some money coming in as a relatively safe play. Also now at a major support level and look very oversold and the trading statement hardly justifies the fall. It's a buy for me.

[topcar] 11/5/2006 10:40

Sugar price is set to soar, Ethanol plants coming on stream,

ABF will get rerated, minimum £10, imo.

[liquidkid] 11/5/2006 10:37

Should be announcement on Illovo bid anytime soon. If successful this would be a major positive for ABF... sweet as.

[bruce meinhoff] 09/5/2006 15:01

Picked a few more up today.

[tompet] 09/5/2006 14:39

due for a bounce, at years low though has no pension problem, cash generating.likely to perform steadilly and regain lost ground imo

[corrbheinn] 09/5/2006 09:54

There is an article in this weeks Money Week called "City View". Part of the content is a piece on ethanol with the following :-
"How can UK investors get in on the act?. One way is via Associated British Foods......"ABF has built Britain's first poduction facility at one of its sugar-beet refineries.It is waiting to see whether biofules becomes commercially viable before deciding whether to scale up".

Considering the interest worldwide in ethanol I think this could be a very interesting investment!!