Associated British Foods Share Discussion Threads

[m_kerr] 21/5/2022 17:09

take the advice, drex, you may learn something new.

[dexdringle] 19/5/2022 19:10

Well thank you Mr Kerr for correcting me so sternly.

Your first name isn't Wayne is it by any chance ?

[m_kerr] 19/5/2022 18:58

dex - have a look at fundsmith's or next's guide on buybacks. your explanation there is very poor and overly simplistic, one that would result in valuing starbucks or philip morris at zero, despite generating many billions per year in net profit. intrinsic value is very different to book value. a factory with £10m of book value may be worth less than 10% of that. equally, £1 of book value could be intrinsically worth £100 or £1000.

[dexdringle] 18/5/2022 15:19

No it wouldn't. The NAV is only £12 per share.

A buyback at £16.50 would literally be like buying £1 coins for £1.30 each.

Only where the NAV is miles above the share price is a buyback worthwhile.

[tlobs2] 18/5/2022 14:11

A share buy back would be ideal at these prices as you rightly say spoole5.

[philanderer] 10/5/2022 11:23

UBS cuts AB Foods price target to 2,300 (2,550) pence - 'buy'

[philanderer] 05/5/2022 13:18

Read across from NXT today ?

[spoole5] 04/5/2022 09:37

Fall here is relentless, you'd think they'd use some of that cashpile to buyback at these levels

[philanderer] 03/5/2022 10:48

RBC cuts AB Foods price target to 1,850 (2,100) pence - 'sector perform'

[m_kerr] 29/4/2022 22:14

shein is certainly a threat, only a fool would say otherwise. although the only way they undercut primark is by not paying any taxes - so no innovations, and zero benefit to our society. the VAT loophole where retailers like thehut used to ship low value goods VAT free about 10-15 years ago was closed by the government within a couple of years and the same would happen here too i suspect - this post pandemic shakedown will see to that.

ABF is now outrageously cheap IMV. profits are now at pre pandemic levels yet the stocks down almost 40%. in addition, net cash has continued to pile up on the balance sheet. the fact they suspended the dividend IMV is down to extreme caution by management, and they could have paid the dividend continuously if they wished. the US growth story with primark is being totally ignored by the market.

[philanderer] 29/4/2022 10:55

Deutsche Bank cuts AB Foods price target to 1,900 (2,300) pence - 'hold'

[philanderer] 29/4/2022 10:55

Deutsche Bank cuts AB Foods price target to 1,900 (2,300) pence - 'hold'

[philanderer] 27/4/2022 14:34

Barclays cuts AB Foods price target to 2,300 (2,500) pence - 'overweight'

Goldman Sachs cuts AB Foods price target to 1,775 (2,015) pence - 'sell'

JPMorgan cuts AB Foods price target to 1,940 (2,100) pence - 'overweight'

[essentialinvestor] 26/4/2022 15:02

justice, not seeking to be negative, just attempting to provide some wider context.

You could make a contra sentiment buy case at these levels.


For anyone who has held since 1990, and there will be a few - you are up Over 3.500%!!
and a lot more on dividend re-investments.



Phil, thanks.

[justiceforthemany] 26/4/2022 14:47

Overly negative.

[philanderer] 26/4/2022 14:20

EI , you called it well. I remember your posts.

[essentialinvestor] 26/4/2022 14:00

Which is about same the multiple as before Primark growth went parabolic.

Massive mean reversion on the multiple which at one time was nearing 35 X earnings.



I warned about this happening, posts should all still be there if you read back,
saying multiple mean reversion will kick in. It's even more dramatic than I anticipated.

[philanderer] 26/4/2022 12:19

Credit Suisse cuts AB Foods price target to 2,410 (2,710) pence - 'outperform'

[netcurtains] 26/4/2022 12:01

Dope007: Not totally but it will take just one more major defeat for Putin before he accepts "stalemate"

[dope007] 26/4/2022 10:55

Russia/Ukraine won't be resolved in a week though net

[essentialinvestor] 26/4/2022 09:38

Problem folks is also Shein, how can anyone compete with them.

[netcurtains] 26/4/2022 09:38

Dope007: You can also see the FTSE exploding if Ukraine Russia resolve conflict next week or week after... (remember the USA is now holding the reigns).

It works both ways.

[dope007] 26/4/2022 09:29

These are looking an attractive investment at this level but can they go lower in a dodgy mkt? PE not excessive at all and looking more in line, but can see further mkt falls with the mess the world is currently in