Associated British Foods Share Discussion Threads

[aldi1] 27/7/2007 14:31

quite right 1CH.i went short cart at 9.00 and closed at 3.00

i dont care about funny-mentals.price is all that matters.

oversold,overbought,this indicator,that indicator...none of these matter to me.

i,m short from 8.82,8.74 and 8.45 as the trend is down.this could change but my stops follow the 30 day ema.

we'll see.

edit - short again at 8.21 the bigger picture is too compelling

[1ch] 26/7/2007 20:58

alki1 - yes but if you had looked at cart pe ratio when it was 800p which I did one would have realised it was vasted overvalued. ABF is just having a bad time with market conditions and with Primark booming, (although I am not sure about the new bio fuel ventured soaking up funds- £200m was it?) the company is on a realistic future pe ratio. If one looks at last year it went down to 750p and then over Jan/Mar which is the strongest part of the year for the stockmarket recovered quite strongly.

But as with cfd's as I have learnt to my cost - it is like betting on red or black to whether the price is going up or down.
Take tomorrow - it may be well oversold and one could do longs - but that is not to say it would not go down another 20p.

[aldi1] 26/7/2007 15:44

i'd love to know what oversold means...

apparently cart was oversold at £8.00...

the market decides

[gateside] 26/7/2007 10:23

Looking very oversold now.

[1ch] 24/7/2007 12:58

Fallng and falling and falling the share price,
yet Primark is doing well,
not so sure about the other venture as this will use up Primark profits.

[trader_clive] 29/6/2007 07:25

Another poor days start, and an further announcement today as well, which has not done the share price any good.

[guru11] 28/6/2007 19:27

A lot of buys towards the end, unless they were delayed trades,
then it would be difficult to establish whether they were buys in fact or sells.
But on the LSE site a lot of the buys on the advfn.com site are showing as sells.

[guru11] 28/6/2007 18:47

Yep - brown just like yours, and full of hot air.

I never wear brown trousers or shoes.
To be truthful all my trousers are black, or dark blue.

[robbie balboa xi] 28/6/2007 14:01

guru,

These trousers from Asda, were they brown?

[guru11] 28/6/2007 13:51

Gateside - I agree - The Oxford Street branch I believe is on the old site of C&A and appears to be a huge store. Revenues should be very good as the store is extremely busy, and that is just one of a number of new stores, even the Swindon one when I went there had a queue at the tills. Results in early November could be interesting. Brokers estimate have a price target of 1100p per share. Share price has been a bit choppy today though.

[gateside] 28/6/2007 10:31

ABF have a strong management, and I have faith that they know what they are doing with this new joint venture with BP.

I also can't see them wanting to sell off Primark. Nothing wrong with a little diversification.

[guru11] 28/6/2007 10:17

All these new ventures - especially into new markets can either go poorly or very good. If it works out then ABF could go from strength to strength, but one thing they do need to diversify which they are now doing.

[idioterna] 28/6/2007 09:59

guru - you must be joking. ABF has risen 25%ca. since this venture was first announced a year ago. Long term, this is an excellent strategy, whereas Primark is a short term approach. Let's do what we are good at. We just got lucky with retailing.

[guru11] 28/6/2007 09:54

Maybe it is this latest venture that is surpressing the share price ??

[guru11] 28/6/2007 09:50

Lets hope the Primark profits are not eaten up by the venture above, although it could be a good venture in the medium term. Surely Primark revenues and profits must rise in the next results around - just look at what welshbob says above. Who is going to buy a pair of pants in M&S at twice the price of that in Primark?

Although I must say that some of their stuff is what I would call adequate quality, but who wants a Rolls Royce pair of pants. But I bought a pair of suite trousers in Asda for just £6, instead of around £25 in M&S, maybe not quite like for like but they fit my needs and price bracket and the last ones lasted months and months, wearing them day in day out.

Are ABF going to sell Primark off - cause selling this gem could be a big mistake.

Primark has been an excellent side line, however I am afraid that businesses going into too many sidelines like boitech fuel, may be not too wise. Look at M&S when they went into America.

[gateside] 26/6/2007 07:09

ABF in joint venture to build £200m UK biofuel plant

Associated British Foods plc ('ABF'), the international food, ingredients and
retail group has today announced that it has reached agreement with BP and
DuPont on an investment to build a world-scale biofuel plant in the UK. A joint
venture will be formed, subject to regulatory approval, to build the plant and
operate the business. ABF and BP will each hold 45% of the joint venture and
DuPont will hold the remaining 10%.

The plant will produce bioethanol from wheat and will be built at a cost of
£200m at BP's chemicals site at Saltend, Hull. Its capacity will be 420m litres
(330,000 tonnes) of bioethanol per year and is planned to come on stream in late
2009. ABF expects a return on its investment ahead of its cost of capital in
the first full year of operation.

The plant will initially produce bioethanol, but the partners will look at the
feasibility of converting it to biobutanol once the technology is available. BP
and DuPont intend to build a jointly funded biobutanol demonstration plant,
which will run in parallel with the main plant, to support this objective.

It is expected that formal agreements will be entered into by the joint venture,
after its formation, with other ABF businesses: Frontier Agriculture and AB
Agri. The supply of locally grown wheat would be arranged by Frontier which is
the UK's leading grain marketer and supplier of agricultural inputs. The major
co-product of bioethanol production, distillers' grain, would be sold to AB
Agri. It will use its highly specialised sales and marketing business, which
sources and develops co-products from the food, drink and energy industries, to
market the distillers' grain as an alternative feed for livestock.

This announcement follows the previously announced investment by British Sugar
to build the UK's first bioethanol plant at Wissington, Norfolk. Its capacity
will be 70m litres (55,000 tonnes) of bioethanol a year, using sugar beet as a
feedstock, and the plant will start production next month.

The European Investment Bank is finalising its approval for the provision of
£120m of project financing for both of ABF's biofuel investments at attractive
interest rates. This would be the first direct financing provided by the Bank
for a biofuel project.

George Weston, Chief Executive of Associated British Foods, said,

'This exciting project will make ABF the major producer of biofuel in the UK.
Its announcement reflects our confidence in our sugar and agricultural
businesses, in our partners BP and DuPont and in the government's commitment to
biofuel production.'

[idioterna] 19/6/2007 12:44

crontab - absolutely correct and as BP's jv partner on the biobutanol side, ABF stands to be a big beneficiary of the major technological bio-fuel breakthrough that BP promised for 2009. That's why I'm here.

[crontab] 19/6/2007 11:19

Perhaps ABF's latest move, into ethanol production, is more its style.

I thought it was biobutanol that they're into, with BP. Crucial differences exist between the two.

[welshbob] 15/6/2007 10:57

guru11. Two days later she was in Croydon and it was the same story there. The store was heaving with long queues at the checkouts.
In the interims 24 weeks to 3 March Primark made 91m on revenues of 721m the group made 268m on 3220m.....so about a third of profits from clothing.

[gateside] 05/6/2007 19:04

I see that JP Morgan have new coverage on ABF, and are rating them OVERWEIGHT with a target of 1160p

[welshbob] 01/6/2007 15:43

I'v decided this a good home for some spare cash in my account based purely on my wife's experience at Oxford Street Primark two days ago. She said the queues to pay were like Gatwick Airport checkins in July. Hope she's right!