Diageo Share Discussion Threads

[billy two cocks] 28/9/2023 11:12

As soon as I see the word "headwinds", my guard goes up.

[disc0dave46] 28/9/2023 10:52

Normal trading update ahead of AGM.If CEO dipped into her deep pockets that would do more IMO, not talking LTIP/freebies either.

[makinbuks] 28/9/2023 10:26

CEO seeking to reassure the market.

[essentialinvestor] 28/9/2023 10:20

Test of £30 area and as previously mentioned it looked on the cards.

DGE reiterated both FY and medium term guidance this morning,
medium term risk/reward now looks favourable - all be it if wider
markets continue to sell off about everything will get cheaper.

[wsm812] 28/9/2023 08:50

"Is it cus ee's black" To quote Ali G!

[billy two cocks] 27/9/2023 17:27

Exactly Laurence.

[laurence llewelyn binliner] 27/9/2023 17:04

Diageo said it had invested more than USD100M (£78m) in DeLeon Tequila and tried for years to salvage the broken relationship with Mr P-Diddly.

Despite having made nearly a billion dollars over the course of our 15-year relationship, Mr Combs contributed a total of $1,000 and refused to honour his commitments, the company said.

Mr Combs bad-faith actions have clearly breached his contracts and left us no choice but to move to dismiss his baseless complaint and end our business relationship.

Unfortunately, Combs has proven himself once and for all to be an unreliable and untrustworthy business partner, the company said in its response.

[plunger2] 27/9/2023 15:20

Is P-Diddly a brother of diddly squat by any chance?

[essentialinvestor] 27/9/2023 14:23

Lawrence, let's take the $ 1 BN, that represents approx 1.3% of the total market cap.

The likelihood for him being awarded $ 1 BN is very low, settled out if court
I would expect. Just my take fwiw.

[action] 27/9/2023 14:20

I will dable around 3000p

[laurence llewelyn binliner] 27/9/2023 14:12

According to the FT, P-diddly had a 50/50 JV with DGE in his Tequila/Vodka brand rollout, the companies argument is that he failed to put his half in..DGE - USD100MP-Diddly - USD 1,000That is the nuts an bolts of the companies counter argument ..Good luck in court if that is contractually correct.. :o)

[essentialinvestor] 27/9/2023 13:24

Thanks, you are right in terms of the multiple it's the same sector to look at.

[laurence llewelyn binliner] 27/9/2023 13:24

There should be more than a few limit buy orders set for GBP30.00 including mine.. :o)

[disc0dave46] 27/9/2023 13:12

EIYes just checked FY06/23 and it's as you say 18.4x. Got the 16x from Stockopedia for FY23 which had eps normalised 189p, giving a PE of 16.1x

[essentialinvestor] 27/9/2023 13:00

Dave, I have DGE on 18.4 X FY forward. 16.9 X on '25 FY.

Obvs based on current consensus, which can alter.

[disc0dave46] 27/9/2023 12:49

For the US:Constellation Brands - PE 24xBrown Forman - PE 38x

[disc0dave46] 27/9/2023 12:38

It does, but personally wouldn't value a business on an index that's heavily skewed by different sectors.The top 5 alcoholic beverages companies in the world by market cap (as of March 2023) are: Kweichow Moutai Co Ltd - PE 32xAnheuser-Busch InBev - PE 18xWuliangye Yibin Co Ltd - PE 22xDiageo - PE 16xHeineken - PE 19x

[sumday] 27/9/2023 12:31

If however DGE was thinking of moving to NYSE, the Dow P/E as of 6 September was approximately 18.93. DGE has a P/E of approximately 18.5.

[anhar] 27/9/2023 11:55

FTSE100 current P/E is 11.4 according to Simply Wall St so DGE is dear on this basis.

[makinbuks] 27/9/2023 11:53

I agree, every stock picker in the London market is looking at buying this I should think

[disc0dave46] 27/9/2023 11:48

It's already on a low rating of 16x, the lowest for over 5 years, it's 10 year average is 21.2x. Forward PE is 18x. So yes it's derated given the macros but £25 is a forward PE of 15x, can't see it but who knows in this market. IMO strong resistance at around £30 and RSI is now edging to being oversold.

[anhar] 27/9/2023 11:36

Low of the year. Shall I bite it ? Any views?

In fact it's the lowest for about two and a half years. Whether you should invest or not depends on your strategy, eg. short term trader seeking capital profits; long term income investor (me); long term capital gains investor etc.

All I'd say is that on a P/E and yield basis, the former being high and the latter low, it's expensive against the market, even after the recent falls. Against that there are few if any other consumer product businesses with such strong and international brands. So for my strat I've bought more recently at lower prices to bring it up to average value in my income port though note that my intended hold period is forever. Booze is one of my must-have core sectors.

But you shouldn't listen to anyone here, including me, because nobody knows anything about the future. So we're all on our own really.

[action] 27/9/2023 11:27

I hope you are correct. Hl is also highlighting risk of high valuation.