Associated British Foods Share Discussion Threads

[justiceforthemany] 28/8/2018 14:33

Joined you here Phil. Great balance sheet and equity ratio of 3. Cash of 1.5Bn!

[philanderer] 28/8/2018 14:23

Entire building destroyed

[philanderer] 28/8/2018 14:20

Hopefully everyone safe...


'Primark evacuated after 'devastating' fire at Belfast store'

The store had only recently been refurbished, with plans to hire 100 people to staff a major expansion of retail space.

[philanderer] 28/8/2018 14:09

Dreadful performace over the last two months, now -20%

[philanderer] 28/8/2018 09:34

updated:

28th aug Citigroup buy tp 2765p
22nd aug Jefferies buy tp 2800p
9th july HSBC buy -
6th july Deutsche buy tp 3100p
6th july Liberum buy -
6th july Goldmans neutral tp 2840p


5th july +++++ trading update ++++

[philanderer] 28/8/2018 09:30

TATE is the beneficiary with NAFTA. ABF does a little business...


"In Mexico, ACH markets the highly successful Capullo cooking oil and also the shortening brand, Inca."



Citigroup reiterating 'buy' this morning , but cutting tp to 2765p from 3400p

[wskill] 27/8/2018 16:36

Will there be any benefits now the NAFTA deal has been signed will it help improve the sugar market?.

[skinny] 23/8/2018 10:44

Credit Suisse Outperform 2,378.50 3300.00 - Reiterates

[mozy123] 23/8/2018 09:07

Jefferies eyes ‘ideal opportunity’ to buy ABF

Jefferies has maintained its ‘buy’ rating on Associated British Foods (ABF) ahead of a market update from the food group and Primark owner next month, believing the bad news surrounding the stock to be priced in.

‘ABF’s 10 September pre-close update should reiterate ongoing sugar pricing pressures and pre-empt input challenges to Primark’s margin,’ said analyst James Grzinic.

‘We believe the shares already price in these commodity-related, temporary challenges. We remain on ‘buy’ and believe current conditions represent an ideal opportunity for fundamental investors to get involved.’

Grzinic cut his estimates of Primark’s margins, resulting in his target price falling from £32 to £28, still ahead of yesterday’s £23.20 share price.

He has pinned his ‘buy’ case on potentially improving margins and international expansion for Primark, an easing of the European sugar market and the shares’ ‘valuation attraction’, on less than 17 times 2019 earnings.

[wskill] 23/8/2018 07:32

Next trading update on 10.09.18 with sterling now much lower against the dollar and euro there could be some benefit to ABF profit expressed in pounds.

[philanderer] 22/8/2018 09:09

Sugar the problem ?

[queen gibbs] 21/8/2018 20:24

Handforth Dean? - no
Trafford Centre extension = yes

[skinny] 21/8/2018 14:56

2019 Bluewater 60,000 SQ feet.

[tlobs2] 17/8/2018 08:23

Handforth Dean retail park...



PS Have we had an upgrade this morning?

[queen gibbs] 16/8/2018 22:48

tlobs2
Where is the huge store in Cheshire?

[mozy123] 16/8/2018 16:52

Always wanting to increase tax, why not do something out of the box and remove business rates over time. Let them compete.

Death of the high street argument - the best will survive, id much rather so for a trip out than being stuck behind a computer or mobile trying to order clothes or groceries.

Long Primarni!

[essentialinvestor] 16/8/2018 14:35

When people reference death of the High Street, the growing divergence
in retail tends to be overlooked. It's the small local shopping streets
that are being mostly hit, the large shopping centres are destination
draws, the later always seem packed.

Ultimately though the government will act, and that will be
driven by tax revenue concerns. So an online tax of some sort.

[tlobs2] 16/8/2018 14:26

They are opening another huge store up in Cheshire ......



They seem to know what they are doing ;-)

[queen gibbs] 16/8/2018 13:14

Primark did a trial with ASOS about 5 years ago - did it work?
They sold the stock.......however was it successful?
Not successful enough to roll out an online offer, Primark business model has never & will never be geared to an online offer - margins are far too low, logistics, returns etc all cost too much to process
Primark's success has been build on the number of new lines inputted into stores daily & encouraging frequent visits = increased spend
the theory is you visit for the two items you want & buy a further six that you didn't realize you wanted!
The diminishing footfall on the High Street will take its effect
No doubt they have been & will remain the busiest stores on the High Street making them a bigger fish in a pond that is drying up rapidly

[essentialinvestor] 16/8/2018 13:07

hxxps://www.marieclaire.co.uk/news/fashion-news/why-primark-dont-sell-online-525940


Where that leaves their longer term physical store model
I'm not sure. Would hope there is still a place for it.

In Birmingham they are closing a smaller outlet and opening
a store about 4x as large.

[essentialinvestor] 16/8/2018 12:47

Phil, was in Guildford HoF yesterday early afternoon and never
seen the place so quiet. Primark has thrived in very tough times,
online competition is growing though, however think it's FX that is weighing
on sentiment atm. From memory ABF tested a small Primark online trial,
their conclusion appeared to be they could sell product cheaper in store
than competition could online.

[philanderer] 16/8/2018 12:18

Afternoon EI, yes plenty for the markets to worry about at the moment.

This doesn't seem to be helping much today...


'Discounts and online help retail sales bounce back in July'

[essentialinvestor] 16/8/2018 10:59

Hi Phil, my betting is there will be ample opportunities
in the months ahead, so there is very little I would be
tempted to buy atm. I'm often too cautious though, only fair to say.

[philanderer] 15/8/2018 17:35

Just GSK out of my twenty blue today.

Portfolio just gone negative for 2018 @ -0.2%

FTSE100 -2.5%
FTSE250 - 2.0%


Only one I'm adding to at the moment is RRS .

[essentialinvestor] 15/8/2018 16:24

Gibbs, the UKX was a good deal lower, around 6500 from memory.
ABF has grown earnings significantly since.
If we hard Brexit and GBP goes in to full on crash mode,
around £19 might just be possible on ABF, unlikely imv.
What I would be more sure of is the days of 24/25x earnings look gone
for sometime to come, priced for perfection on last year's multiple.
Had 2 small lots today