Diageo Share Discussion Threads

[laurence llewelyn binliner] 30/7/2024 14:58

#Philanderer, not many days you make a quid a share on DGE purchases..Early days, and long road to recovery, but todays small win gratefully received.. :o)

[philanderer] 30/7/2024 14:56

MCunliffe , sounds like good advice to steer well clear. What a mess.

[philanderer] 30/7/2024 13:58

2320p for a few this morning.

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As Chris Beckett, head of equity research at the wealth management firm Quilter Cheviot, put it: "North America is experiencing consumer weakness, which is not an isolated issue but rather one observed across several countries.

"Guidance remains vague and doesn't provide much optimism for a swift turnaround."

In fairness, Diageo is far from alone in suffering from a downturn in consumer confidence.

This week alone has seen disappointing trading updates from the likes of Heineken and McDonald's while some of Diageo's peers, such as Remy Cointreau and the Jack Daniel's owner Brown-Forman, have also confessed to tough trading conditions.

A turnaround in sentiment, driven by interest rates falling around the world, cannot come quickly enough.

[saltaire111] 30/7/2024 13:27

I bought £20k worth this am. Got 862 @ £23.07. I think these have dropped far enough to make this worth while. Will buy more if the trend turns positive.

Salty.

[jubberjim] 30/7/2024 12:57

Not for me

Eaten my loss and just now bailed

Good luck everyone remaining

[careful] 30/7/2024 11:42

Sometimes poor results focuses the management.
More urgency, fiscal discipline , focus on efficiency.

With a such huge international operation there must be plenty of improvements to make.
Complacency and sloppiness come with easy progress.

That is the attraction of buying at todays depressed prices, the potential for improvement.

[philanderer] 30/7/2024 11:39

Pricing changes for even the giants...


'McDonald's to 'rethink' prices after sales fall'

[anhar] 30/7/2024 11:16

I said recently that as purely an income investor I'd only be willing to add to my DGE holding on a 5% yield, which on the latest divi of 103.48¢, about 87p at present, means a price of around 1,700p. I doubted at the time that it would go that low but it now looks a bit more likely given the poor 24 results, big price drop and still high P/E, too high imo for a share that is now ex-growth for the time being.

So I'll continue to hold for income, encouraged by the good long term divi growth record, which remains in place with a 5% rise despite today's poor results, but won't be adding unless the above happens.

[laurence llewelyn binliner] 30/7/2024 10:54

#MCunliffe1, give it a spin, it comes in 330ml bottles or draft, be advised it is falling down water, but you will be grinning for no apparent reason when it happens.. :o)

On DGE, after procrastinating 8-9am here, I missed the days low (so far) but did bag a few more at 2300 as it looked oversold at -10%..

[mcunliffe1] 30/7/2024 10:00

Jaipur IPA ?

Googled it. Bakewell based brewery named Thornbridge. Must give that a try. They even have a BBQ sauce offering.

[laurence llewelyn binliner] 30/7/2024 09:48

#Mcunliffe1, an interesting counter argument, in terms of brand loyalty, smokers would be top of the tree, drinkers 2nd (IMO), supermarket shoppers and where they go to buy 3rd, perhaps by generation separation loyalty is more/less varied or valued..

Heinekin dropped -10% yesterday on poor sales/profits
McDonalds global sales slowed

Price point is certainly a key driver for sales volumes, but I still see the majority of shoppers migrating back to premium/luxury brands vs budget over time as their disposable cash increases for discretionary spending..?, for me, I will stick to Guinness, and on occasion Jaipur IPA but as you will probably know, it is dangerous stuff.. :o)

[chachacha] 30/7/2024 09:37

Lefty positive discrimination box ticking has been a disastrous experiment in wokery. Look at Waitrose, GSK and not forget Talktalk. All it proves is women are just as rubbish as men.Theresa May and Liz T just as bad as Camoron and Bojo.It is not a solution.

[mcunliffe1] 30/7/2024 09:30

Yes. I buy ALDI's Banks Bitter because I actually like the taste, the price and the relatively low alcohol.

I also prefer their Bourbon. Even took a bottle with me on a 60th holiday to Tennessee amongst other places.

We are all learning that taste and preference outweigh brand loyalty. When price is added to the mix it becomes quite easy to convince oneself to spend less.

Tesco realised years back that offering a 'Value' range alongside branded items made sense - and money.

DGE should consider this. The aim of the game is to make money not polish the laurel reef around the 'award winning' but low-selling top-notch products.

Whilst in Mauritius in Feb 2024 on an all-inclusive holiday I did not see Black Label on the shelf. It was a five star hotel and the choices were more than acceptable. But NO Black Label. Why? Too expensive? Poor sales capability by DGE?

[philanderer] 30/7/2024 09:23

Thinking of adding 15% .

[laurence llewelyn binliner] 30/7/2024 09:19

Discretionary spending is taking a hit due to inflation and higher interest rates, sooner or later both will blow over, prices will stabilise and shoppers will be buying luxury or premium brands again, nothing wrong with Lidl lager, but IF you had a few quid more to spend, would you really still buy it..?

As for the alcohol sector being a shrinking market like smoking, I would argue that an ever expanding global population takes care of sales growth once they can afford it, IMB/BATS are having a great run currently in the face of ever increasing regulation driven mostly through buybacks and robust dividends..

[philanderer] 30/7/2024 09:08

Seven year low. Chart support around 1700p. But it'll be taken out by then.

[natasonline] 30/7/2024 09:07

I'm buying more. One day this inflation story will disappear overnight and stocks like DGE will return to form. I'm happy to buy, hold and forget DGE with a 3% dividend.All fair value formulas suggest DGE has good upside. Great Entry level for long term investors.

[cynicalsteve] 30/7/2024 09:07

Looks like DGE is making the transition from growth stock to income stock. That will be painful, just ask Vodafone investors! Alcohol as a growth industry was always a dubious proposition.

[smcni1968] 30/7/2024 09:02

Bloody hell... between this and Reckitt

[onehanded] 30/7/2024 08:15

They have cash and could be a bid at this price. Not in yet and just waiting for the sellers to finish. Might sell of bits of the company and return cash. We will see…. Think fall overdone. Should be back to £23 later, maybe lol

[porsche1945] 30/7/2024 08:13

Another Lindsell Train Winner🤣 he’s turning into Neil Woodford with the U.K. dross he’s invested in, fail to see how this is going to do any good in imminent recession when it’s already struggling and has large debts, target price 15.80 in coming sell off.

[onehanded] 30/7/2024 08:12

Priced in £23 with update. Waiting to buy if it get to £22.60

[plunger2] 30/7/2024 08:08

i have serious doubts about Debra.
Knowing DGE they don't deal with poor management quick enough.
This looks like its ex growth for a year or two.
The information is being dripped out.
All bad signs. But probably in the price at £23.
Difficult times for the industry. But this may be the wrong boat to be in during the storm. We'll see.