A week into January and I see that the weekend press has plenty of stories about the European Central Bank executive who ‘warns green energy push will drive inflation higher’, as well as the UK’s former vaccines minister who said it would be ‘helpful’ to cut the self-isolation period to five days. Otherwise there is the apparent hassle of the wealth of the top 1% is 230 times higher than the poorest 10%. Such analytical excitement (not).
Hello, Share Tasters. My happy family are all veggies. My three kids in their late twenties have never tasted meat or fish. So we were delighted by the success of the meat-free sausage rolls by Greggs (GRG). And we buy a lot of them. We also like the efficient, modern, bright and breezy way it runs its bakeries. And reckon a lot of other folks feel the same.
As a famous Led Zeppelin song once observed: “if it keeps on rainin’, levee’s goin’ to break”. Such is life in a world of higher government debt levels and (in many cases) excitable equity valuations and exceptionally low bond yields. That is not a combination which continues, in other words you have to keep very active with your stock selection (and general investment allocation). I am certainly confused about some of today’s results from the UK market.
With its more than 2,000 outlets, food-on-the-go retailer Greggs (GRG) has updated including “in recent weeks the impact of pent-up demand for retail has reduced”. The shares have through currently responded further higher towards 2600p, so what’s going on?…
Hello, Share Pasters. It’s likely most companies will make a jaunty recovery once they resume normal service. But not all firms will rally. And and some will vanish altogether. Let’s have a look at sectors it may be wise to avoid in future or perhaps cash in any shares you already have.
A bit of excitement for commodity stocks (again!) and even the pound this morning, but otherwise a quiet Monday morning start for the UK markets. A couple of share price winners I notice are Hotel Chocolat (HOTC) and Greggs (GRG), where if you have been holding either stock over the last year…then you have done rather well. Let’s start with Hotel Chocolat.
Loads and loads of regulatory news updates this morning but I must admit nothing that really strikes me as worthy of a standalone article. For example, AA plc (AA.)…
Hello, Share Troopers. The biggest bakery hit of all time (in this household) is the Greggs (GRG) veggie sausage roll. They’re as tasty as heck, cost an easily handed over £1 and they’re nearly always sold out. Given a crafty publicity exercise, they became hugely popular. And due to their culinary excellence, they’ve remained so ever since. Last year, the innovation helped Greggs to revise profit forecasts upwards five times in a row…
If you happen to be in my company and the conversation - for whatever reason - turns to Greggs (GRG), then I can guarantee you that you will learn three things. First, despite 98% of the time being a pescatarian, I am just a little partial to one of the original (non-vegan) Greggs sausage rolls and the other two stories relate to my last few months as an institutional investor which you can read HERE. I have not owned Greggs shares for quite a while and to be honest I do not have a particularly strong view either way today. However, its update out earlier was insightful at a number of levels...
Just one guest in this week's show, which is sponsored by Yorkville, the bear raider Lucian Miers who has been doing due diligence at the coal face on the cannabis market. We discuss pot stocks and GW Pharma (GWP) in particular, the We Work flop and its macro significance, Versarien (VRS), Sirius (SXX), Tesla (TSLA), Purplebricks (PURP) and Greggs (GRG).If you like this and can't wait seven days for more of the same you should listen to my Bearcast every day.
Hello, Share Reachers. In my more angry past, I have criticised Greggs (GRG) the baker, for having too much coloured icing confections in its window. Not that good for kids, I thought. But as one of the original (almost) vegetarians, I applauded its big market drive to introduce its vegan sausage rolls. And what a difference that’s made to its P&L! The company says that sales rocketed by a tenth in the first seven months of this year.
Following a trading update yesterday which helped the shares up from circa 1600p towards 1800p, shares in “the leading bakery food-on-the-go retailer in the UK, with over 1,950 retail outlets throughout the country”, Greggs (GRG) currently remain above 1750p following research updates…
Another day, another bunch of trading updates to review…
The world has turned upside down. Today's trading update from Greggs (GRG) contains the observation that: 'As testament to the increased breadth of our product range, we were recognised at PETA's 2018 Vegan Food Awards and were awarded the 'Best Vegan Sandwich' for our Mexican Bean Wrap'. I know the steak bake fraternity must be revolving in their early graves but I kind of see this as the high point of the turnaround plan at the core of the Greggs story for the last (just under) six years.
Hello, Share Swipers. I may have commended Greggs (GRG) to you in the past. I think I might have changed my mind. This high street baker seems to be everywhere these days. It’s not only in busy areas but has also moved into transport terminals, housing estates and the like.
Hello Share Swallowers. The wiser investor pays attention to consumer trends. And to buy shares in a company which is at the mercy of food fashions can be a risky undertaking. We all found this out as the price war among supermarkets began. But here are a few other companies I think might be ‘sells’ because of changes in the most basic type of food we eat.
Hello, Share Takers. I’m not a great fan of Greggs (GRG) the baker. I rather disapprove of the sugary confections you see in its shop windows. This may be because of my dodgy teeth. But they do a very wholesome seeded loaf which is a mainstay of this family’s kitchen.
Hello Share Noshers. Whenever I’m made to watch the Great British Bake-off (by my teenage daughter, who’s a great fan) I feel desperately hungry. Which is a bit of a worry for me because, as you’ve probably noticed, many of the competitive cakes on this show can sometimes be made from things which may put on unwelcome weight.
The show demonstrates that British people are very keen on cakes.
Shares in Greggs plc (GRG) are currently approaching 600p on the back of an update that operational improvement initiatives, lower costs and more favourable trading conditions than were expected mean “we now anticipate full year profits to be materially ahead of our previous expectation”. Is this already reflected in the share price or not?