9 March 2018
FTSE on track for strong week, looking beyond SIG’s headlines and GVC issues reassuring numbers“Although The FTSE 100 doesn’t seem to want to move on Friday morning, trading flat at 7,196, it is still on track to finish the week up nearly 2%. That would be its best weekly performance since early February,” says AJ Bell Investment Director Russ Mould..
SIG“Results from specialist building products firm SIG are a lesson in not just focusing...
8 March 2018
Four reasons why financial markets may not want to see tariffsWhen Donald Trump was running for President, financial markets were wary of him, not least because of his calls for tariffs and protectionist policies, and it now looks like those fears may be realised, depending upon how America’s trading partners respond.
Such concerns could start to counter the optimism generated by the President’s drive for tax...
8 March 2018
Domino’s health warning, Countrywide flop and G4S fighting negative sentiment“The FTSE 100 sits on its hands on Thursday, staying flat at 7,157,” says AJ Bell Investment Director Russ Mould.
Domino's Pizza“Full year results from Domino’s Pizza look impressive at first glance with UK system sales breaking through the £1bn mark for the first time and decent growth in pre-tax profit and dividends.
“Yet under the bonnet...
6 March 2018
FTSE bounces back, Just Eat setback, Smurfit Kappa bid brings excitement to the packaging sector and profits down at Aggreko“The UK stock market bounces back with a near -1% rise on Tuesday, trading at 7,180 in the first hour of the market being open. Miners, utility companies, pharma firms and financial services groups all lead the charge,” says AJ Bell Investment Director Russ Mould.
Just Eat“For the second time in a little over six months online takeaway platform...
2 March 2018
FTSE lower, Mondi lifted by special dividend, IMI outlook disappoints“The FTSE 100 starts the day on the back foot after weakness in the US and Asia overnight and ahead of a widely trailed speech by prime minister Theresa May on Brexit later,” says AJ Bell Investment Director Russ Mould.
MONDI
“The market’s obsession with income continues as the one euro special dividend which accompanies 2017 results from paper...
1 March 2018
How to build a margin of safety into stock portfolios (Part II)The first part of this column, which looked at price/earnings ratios (PEs) and how to use them cited Warren Buffett a lot. With uncanny timing, the American investment legend’s annual Letter to Shareholders in his Berkshire Hathaway vehicle arrived last weekend (24 February) to provide an ideal context for the second part of our look at how to...
1 March 2018
WPP suffers, Howden Joinery’s property challenge and Merlin bounces back"The UK stock market has recently been acting like a rollercoaster in slow motion. It nudges up a tiny bit and eases back a tiny bit. Today the FTSE 100 slips 0.3% to 7,211," says AJ Bell Investment Director Russ Mould.
WPP
“The string of disappointing updates from WPP continues as it posts its worst set of numbers since the financial crisis and...
28 February 2018
ITV slumps, Admiral pays 27th special dividend, Foxtons’ bleak results“After two positive sessions this week the FTSE 100 takes a step back on Wednesday, slipping 0.4% to 7,256, dragged down by weakness in the mining sector,” says AJ Bell Investment Director Russ Mould.
ITV“New ITV chief executive Carolyn McCall gets off to a sticky start in her new role as the free-to-air broadcaster reports its 2017 results. The...
27 February 2018
Comcast ignores Warren Buffett’s warning as it reaches for Sky“No sooner has Warren Buffett warned of the difficulties that he and Berkshire Hathaway business partner Charlie Munger are having in finding good acquisitions at sensible prices than a bid battle has broken out for British satellite broadcaster Sky,” says AJ Bell Investment Director Russ Mould.
“Buffett is sticking to his valuation disciplines by...
27 February 2018
Persimmon becomes a cash machine for shareholders (as well as its managers)“Questions will be asked about the structure of 2012’s long-term incentive plan, the riches it bestowed upon management and how shareholders let it through on the nod, but Persimmon has gone a long way to calming at least one unhappy party by showering investors in the stock with a cash windfall of their own,” says AJ Bell Investment Director Russ...
27 February 2018
Sky bid battle, Persimmon’s dividend delight and Greggs’ pedestrian earnings“The UK stock market continues to nudge ahead with the FTSE 100 rising 0.3% to 7,310 in early trading on Tuesday. Media stocks, housebuilders and banks dominate the leader board,” says AJ Bell Investment Director Russ Mould.
Sky“The plot has thickened at Sky as NBC and Universal owner Comcast trumps 21st Century Fox’s longstanding recommended...
26 February 2018
FTSE up, Hammerson’s odd highlight, ABF’s Primark conundrum and Bunzl’s Amazon threat“The FTSE 100 starts the week on a positive note, rising 0.5% to 7,281, help by renewed strength in mining and consumer goods stocks,” says AJ Bell Investment Director Russ Mould.
Hammerson“It seems odd that Hammerson regards its proposed acquisition of shopping centre investor Intu Properties as being its highlight of 2017. That deal didn’t go...
23 February 2018
FTSE struggling, RBS fails to impress, IAG misses forecasts and Rightmove's underappreciated position“The UK stock market doesn’t seem to have the energy to recover all the ground lost at the start of the month.
“It is on track to end the latest week down nearly 1% at 7,237. That’s still more than 3% below the level at which the market traded before the global stock market sell-off began on 2 February.
“The latest reporting season continues...
22 February 2018
Barclays’ shares key attraction is they are cheap (but don’t they deserve to be?)“The sharp rise in Barclays’ shares today reflects management’s optimism on the planned 2018 dividend payment of 6.5p per share, and the future benefits of further cost cuts and changes in the US tax laws, as the messy fourth-quarter numbers themselves offered little to write home about,” says AJ Bell Investment Director Russ Mould.
“Investors may...
22 February 2018
FTSE weak as US rate worries return, Centrica maintains dividend, Barclays ups payout guidance and Anglo American boosted by commodities rebound“The FTSE 100 was down more than 1% early on as investors digested the latest minutes from the US Federal Reserve” says AJ Bell Investment Director Russ Mould.
Centrica“Investors were expecting a very poor 2017 performance from Centrica and that is what they got with profit down 17% to £1.25bn.
“Relief the situation had not deteriorated any...
21 February 2018
How to build a margin of safety into stock portfolios (Part I)The UK stock market’s leading indices, the FTSE 100, FTSE 250, FTSE All-Share and (for small-cap fans) FTSE AIM All-Share, have all forged some kind of rally subsequent to the sudden slump of early February.
However, not one of the quartet is showing a gain for the year, as of the time of writing, unlike the headline American benchmarks, the Dow...
21 February 2018
FTSE falls on weak US cues, Lloyds unveils buyback, Barratt’s record first half and AA drives down dividend“The FTSE 100 falls 0.3% early on after weak trading on Wall Street overnight” says AJ Bell Investment Director Russ Mould.
Lloyds Banking“Investors gave UK bank Lloyds the benefit of the doubt despite the fact it posted 2017 pre-tax profit short of expectations. Profit was up 24% to £5.3bn but below consensus forecasts for £5.9bn thanks to...
20 February 2018
FTSE prepares for results deluge, HSBC disappoints on dividend, BHP plans swift shale exit and Dunelm’s integration headaches“The UK stock market holds firm as the full year results season starts to get into full swing. The FTSE 100 was unmoved at 7,247 in early trading on Tuesday,” says AJ Bell Investment Director Russ Mould.
HSBC“ HSBC has kicked off the latest reporting season for UK-listed banks with an 11% rise in adjusted pre-tax profit to $21bn in 2017. However...
19 February 2018
Sluggish sales progress bruises Reckitt Benckiser’s shares“A return to sales growth in the fourth quarter, increased cost-saving targets and a higher dividend are not proving enough for shareholders in Reckitt Benckiser, whose shares are the worst performers in the FTSE 100 in early trading” says Russ Mould, AJ Bell Investment Director.
Source: Company accounts
“The problem may not be the numbers...
19 February 2018
FTSE in positive mood, Reckitt sales fall flat, tiny margins for McColl’s and Dart Group soars“The UK stock market starts the new week in a positive mood, nudging ahead 3 points to 7,297, propped up by strength in airlines, banks and utility companies,” says AJ Bell Investment Director Russ Mould.
Reckitt Benckiser“Consumer goods firm Reckitt Benckiser is guiding for a 2% to 3% increase in like-for-like revenue in 2018 but having promised...
16 February 2018
FTSE on track for positive returns this week, Segro in strong demand and CVS disappoints again“The UK stock market has currently risen by 2.6% this week as measured by the FTSE 100, implying some stability following the previous week’s sell-off. Next week will be very interesting to watch given the large number of big companies reporting earnings or updating on trading. Corporate news can stimulate higher trading volumes,” says AJ Bell...
15 February 2018
Convatec still wounded, Standard Life Aberdeen shock and RELX reassures“The FTSE 100 soldiers on, rising 40 points to 7,253 in a market led by miners and banks,” says AJ Bell Investment Director Russ Mould.
Convatec“The fanfare that surrounded Convatec’s IPO was short-lived and the wound care company is still nursing a slight cold today.
“The business quickly joined the FTSE 100 index soon after floating on the...
14 February 2018
FTSE gains ground, Carillion fall-out continues and clouds clearing for Sky“The FTSE 100 was in the ascendancy early on Wednesday after gains on Wall Street overnight and ahead of the publication of US inflation figures later,” says AJ Bell Investment Director Russ Mould.
Galliford Try“Construction, regeneration and housebuilding firm Galliford Try serves up a nasty surprise for investors this morning in the form of a...
13 February 2018
FTSE static, TUI’s strategic progress and relief at Pendragon results“The UK stock market is static following yesterday’s small recovery. The FTSE 100 moves up a mere 2.6 points in early trading to 7,179, perhaps due to a lack of major corporate news to drive trading volumes,” says AJ Bell Investment Director Russ Mould.
TUI“Tour operator TUI has reported a satisfactory first quarter trading update with seasonal...
12 February 2018
UK markets bounce back, Barclays still in pain, Acacia’s horrific results and UP Global Sourcing’s latest disaster“The UK stock market starts the new week in a better mood, rising 1.1% to 7,170 thanks to particular strength in mining stocks, insurers and banks,” says AJ Bell Investment Director Russ Mould.
Barclays“Try as it might the UK banking sector is still struggling to distance itself from a financial crisis which began more than a decade ago.
“The...