Greggs @ 410.9p, -0.7p (-0.17%)
Balfour Beatty @238.2p, +0.9p (+0.38%)
Well despite markets pausing for breath, and taking a cue from a reader, Fenchurch, I am very interested in a couple of companies at the moment, Greggs and Balfour Beatty.
Both have flitted across my radar in the past and both seem to have be having problems following recent results/statements which, on the face of it at least, stem from the UK's current economic stagnation so, I will be taking a closer look at some stage.
Related posts:
- Greggs @ 460.9p: Sausage roll anyone?
- Watchlist alerts.
Bought balfours at 236, pays a good divi, when things settle down, this will rise..
ReplyDeleteGRG seems a good bet but if its profitability falters then we may have a problem. Its been a very good steady share for a long time with a good track. At 400 it seems undemanding. The market could easily falter and most things will drop. Profit warnings come in threes and ... I have a small position which I think OK for the moment.
ReplyDeleteBBY (CLLN,KIE&MGNS) are probably the high div and more challenging end of the infrastructure market (contrast GFRD , IRV , KLR ..). They have not yet shown any signs of take off. Some of their fundamentals are a bit stretched in particular cash flow to cover dividends , debt levels and thin profitability. However they are a hope for the recovery. I do wonder sometimes whether I am looking at more an more risky shares at the top of a bull market instead of an unloved sector. I dont feel that the four mentioned are themselves at the peak of their bull market. But if the market falls then I am sure they will falter yielding better prices for the buyer. Let us hope that their rich dividends do not dry up as prices could then drop substantially. (FGP...) My time horizon for these is over a year.
Another sector that interests me is the resources but not the strange new ones with challenging backgrounds. AAL,BLT,RIO,VED. All falling. At some time they will be too cheap.
Regards
Fenchurch
Hi Fenchurch,
ReplyDeleteAll good points, and yes, as you suggest, that is the key to recognise value or risk, or a fair, and acceptable balance of both.
Commodities are clearly geared to Chinese, and global recovery, and have experienced some cost inflation in recent years post the peaking of the so called "super cycle".
I particularly like BLT with its wider exposure to oil and gas which, more than a hedge, I see as an extra string to its bow.
It also has a good track record of dividend increases to steady the valuation ship.
Best regards MA