Diageo Share Discussion Threads

[pugugly] 27/1/2022 07:42

Results look very good but uncertain if they beat market expectations.
Divi nice.

[toffeeman] 26/1/2022 19:26

Will it bounce off the 200 MA?

[suetballs] 26/1/2022 17:20

Hopefully good with a nice fat dividend.
Suet

[togglebrush] 26/1/2022 14:53

Tomorrow
Interim Results 27-Jan-2022

[philanderer] 23/1/2022 15:17

Interims due on thursday.


Questor: Diageo’s share price slump provides an opportune moment to ‘buy on the dip’

Questor share tip: loyal customers, opportunities for growth and the ‘premiumisation’ trend all bode well for its shares


https://www.telegraph.co.uk/investing/shares/questor-diageos-share-price-slump-provides-opportune-moment/

[philanderer] 18/1/2022 12:53

Deutsche Bank raises Diageo price target to 4,650 (4,530) pence - Buy

[gateside] 13/1/2022 21:20

Not a good start to '22 - beginning to look oversold

[bull19] 13/1/2022 19:57

Thanks Steve, I really appreciate you taking the time to reply. This was one of my first investments a couple of years ago (blindly) following a tip and it's done pretty well. I am trying to educate myself, so I can make better decisions myself, but financial reports can be daunting so I'm currently using a screener to look at the high level fundamentals of current and potential investments. Although this is a step up from just blindly following tips, evidently from what you've said, it doesn't give you the whole picture eg on debt. Maybe I should take an accountancy course :)

[steve3sandal] 13/1/2022 19:23

Learning is great. You wont find too many answers here. If you're concerned look at the Accounts. I'll repeat that as it's what I'm trying to say. Page 177 under Note16 details line by line their long term borrowings. I don't see anything to be concerned about. They have an 8% Bond liability due to be repaid in 2022 so that will help as they can refinance around 2% imo. £12.6Bn of debt and perhaps 10% to refinance in next 1/2 years but it goes all the way out until I'm likely to have left this earth in 2040s. The accounts also show the impact of 0.5% change in variable interest rates. It's buttons and dwarfed by changes in sterling exchange rates. share price probably ran ahead and hopefully will run back to £35 where I'd be interested again.

[bull19] 13/1/2022 18:49

From my admittedly simplistic question, I suppose that's one of the things I'd like to know... are their debts fixed at low rates? And for how long? Presumably anything fixed at a low rate now is at risk of increasing when terms end? I'm quite new to this, if it isn't obvious :)

[steve3sandal] 13/1/2022 18:26

What interest rates and terms are you concerned about?

[bull19] 13/1/2022 18:17

What are people's thoughts on the high level of debt here? Particularly with rates rising?

[jonnyboy7] 13/1/2022 16:24

P/E got very racy so I reckon just pull back for growth with the prospect of rates increasing. How for who knows. Always makes me a bit nervous in run up to results that bad news is coming...find out soon.

[sharetalk] 11/1/2022 11:57

If you like Diagio then look at Revolution Bars Group who's Yr 2022 revenues could be 5x Yr 2021 revenues, and make it a 10x bagger from a low base:From RBG's Preliminary Annual Results for the Year to 3/7/2021 (released 16/11/2021):"After the first 14 weeks of FY22 we had already exceeded the total revenue generated in FY21", the latter being £39.4m.So projecting that forward, this implies that after 52 weeks of FY22 (Jul 2021 to Jun 2022) total FY22 revenues could be:52/14 x £39.4m = £146.3mHowever, they then go on to say:"At the time of writing [16/11/2021] total revenue is currently 137% of FY21", i.e. 1.37 x £39.4m = £53.97mSo applying that further upward adjustment for the first 14 weeks of FY22, the projected FY22 revenues figure could be another 37% higher:52/14 x £53.97m = £200.4mor £146.3m + 37% = £200.4mor more if they had good Christmas trading and/or open some more venues.

[growthpotential] 10/1/2022 00:04

What's with the latest sell off(?)

[philanderer] 07/1/2022 16:27

FWIW , updated brokers...


6th jan Bernstein market perform tp 3780p
9th dec RBC underperform tp 3100p
1st dec Soc Gen buy tp 4500p
30th nov JP Morgan neutral tp 4350p
23rd nov Goldmans buy tp 4650p
18th nov UBS buy tp 4300p
18th nov Kepler hold tp 3900p
18th nov Barclays overweight tp 4770p
18th nov BOA buy tp 4600p
17th nov Citigroup neutral tp 4000p
17th nov Deutsche buy tp 4470p
17th nov Berenberg hold tp 3900p
17th nov Credit Suisse outperform tp 4400p
17th nov Jefferies buy tp 4800p
17th nov Morgan Stanley overweight tp 4400p


16th nov ++++ update ++++

[woodyjmw] 07/1/2022 13:59

I would think sales/growth will be constrained this quarter by Omicron, but should be a fairly short term effect, plus yes some profit taking.

[thamestrader] 07/1/2022 08:43

Does somebody know something I don't?
Or is this just (well earned) profit taking?

[philanderer] 31/12/2021 11:57

Interview: Diageo aiming to make alcohol the ‘growth engine’ for travel retail


HTTPS://www.dfnionline.com/latest-news/interview-diageo-aiming-make-alcohol-growth-engine-travel-retail-31-12-2021/

[woodyjmw] 30/12/2021 13:13

It’s probably not an either or choice between Bonds and stock like DGE, high quality Bonds are much less likely to crash nor be as volatile as stock, they are also a diversification. If we all had an infinite amount of time on this planet we might invest wholly in stock, but if you want to sleep at night without worrying that you might loose 30%+ of your wealth the next day, then you should probably hold some bonds.

[robert0taylor] 29/12/2021 16:06

All very well to look back. Diageo or bonds? Diageo up 67% this year plus divis. Feel there is more to come. Can't bring myself to sell any time soon, even though my holding is about 65% of my portfolio.My most successful holding, just like Nick Train. Beazley coming back nicely. Tritax, Big Box also, United Utilities, National Grid, SSE, to name just a few in my Portfolio.Heres to a better year that realises the real value of stocks listed on the Footsie.

[wetdream] 22/12/2021 18:07

Wonder where the share price would be if the company didn't have such a massive ongoing buyback programme?

[robinnicolson] 15/12/2021 13:50

Nick Train wrote about Diageo in the Finsbury Growth & Income Trust 2021 annual report:

Diageo was the Company's most successful stock over the last 12 months, and, partly as a result, is the biggest position, at just under 12% of NAV.
There are decade-long secular trends driving Diageo's business. Most notably the propensity for consumers worldwide to drink less alcohol (which is a good thing), but instead to drink more of better-quality products. This growing taste for premium and super-premium beverage brands has accelerated with the incredible increase in consumer wealth over the last decade, notably in the USA and Asia. With arguably the best collection of prestige spirits brands (and Guinness) Diageo has been and will continue to be a prime beneficiary of these trends. In addition, while we have no view as to whether the inflation pressures afflicting the world in 2021 will turn out to be ephemeral or entrenched, we are sure few companies are better positioned to maintain the real price of their products than Diageo. Would you sooner own a government bond on
a running income yield of 2%, or Diageo on a starting dividend yield of 2%? We can't help worrying that pension schemes around the world that choose the government bond ahead of Diageo, on the grounds that "equities are riskier than bonds", are making a costly mistake.

[philanderer] 09/12/2021 11:10

RBC CUTS DIAGEO TO 'UNDERPERFORM' (SECTOR PERFORM) - PRICE TARGET 3,100 (3,000) PENCE