Wednesday 12 December 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
Hello, Share Guzzlers. It’s usually encouraging when you find a company with a single digit PE as well as a juicy dividend. And Greene King (GNK) scores on both counts. The PE ration I have is only about 8 and the dividendyield is a jolly 6.7%. But those happy numbers do not always auger a bouncy near future for the share price.
Hello Share Middlers. I’ve commended Greene King (GNK) to you in the past but its yearly numbers are not that marvellous. The pub and food chain’s adjusted profit before tax toppled back to £243 million. That’s still a tidy sum, but it’s 11% less than last time. Still, the divi remains unchanged at 33p per share. The prospective yield I have is 5.3%, which ain’t at all bad.
The numbers from Greene King (GNK) today are pint glass half empty or half full as per your inclination. The good news is that the attractive 5%+ dividend yield is held and covered by cashflow generation. Additionally those wonderful attributes for a pub group - sunny weather and a World Cup - have helped out. As the company notes itself: 'positive momentum has continued into the new financial year, aided by good weather and popular sporting events'.
Hello, Share Snackers. Before now, I’ve commended shares in Greene King (GNK). Eating out in pub chains is usually cheap and cheerful and ideal for treating families who don’t particularly relish gourmet food. But after seeing its latest set of figures I’ve rather changed my mind.
There is a lot of news out today including the latest dodgy updates from retail stragglers Mothercare (MTC) and Carpetright (CPR), both of which are completely uninvestable at the moment as I last discussed HERE. However, it is two other names I would like to update on today.
I laid out my updated positive view on pub operator Greene King (GNK) in early December HERE, since when the share has hardly been rampant despite a little bit of early New Year bid hope. On the latter, I think I have used up all my luck on that front with GKN year-to-date but frankly at the current valuation anything is possible.
I have not made any money on my Greene King (GNK) purchase of HERE a couple of months or so ago but I have not lost a fortune either and the super summary one-liner is that by the time next autumn rolls around, I think you have made good money on this one. I am relaxed because the interim results were not a shocker despite the 8% odd fall in operating profit and the use of the word 'challenging' in a semi-liberal fashion.
Has the weather been bad since the second half of July with you? It seems to have been alright in the locality of Bailey Towers but as I spend my time inside slaving over copy for ShareProphets among other akin matters, rather than sitting in a pub garden, I cannot really tell you if Greene King (GNK) is talking reality or not with its expectations-chopping update today observing: 'since the second half of July, when the weather worsened, trading weakened'.
Hello Share Turners. Recent results from Greene King (GNK) were a dose of good news in a difficult consumer market. Operating profits were up by about 5%, while revenues on the year were up nearly 7%.
Hello Share Pitchers. You may have heard me say a few times that the drinks trade is worth a look - if only because people seem to be boozing more than ever these dark days. An easy way to cheer yourself up, you see.
From the FCA's spreadsheet of short positions required to be disclosed to it, the following details the 20 highest single net short positions and the changes (red if short increased, green if reduced) since a previous analysis HERE.
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