Hello, Share Munchers. The company that flogs Mr Kipling cakes has posted some exceedingly good figures. Premier Foods (PFD) seems to have been cheered by the pandemic rather than hit by it. And some of that is because folks are using more of the firm’s ingredients to do more home cooking. It’s eased the boredom of lockdown.
Picking shares that are worth buying at the moment is a real minefield as the situation with Covid-19 is changing all the time. It would be very easy just to sit here and say ‘sell everything’ and you could probably stick a pin in a list of stocks at the moment to pick a sell recommendation, and the chances are that it would go down, at least in the near time!
I commented on the lunatic management at Premier Foods (PFD) a couple of weeks ago HERE, who, after turning down a perfectly good bid, are circling the wagons against activist investors who want to help to start to create value by booting out the CEO. I could not agree more with their assertion that the CEO's tenure is 'five year of failure'...
It is not exactly a classic earnings Thursday but three quick observations from today's regulatory news selection...
I read in today's Sunday Times that: 'An activist hedge fund has opened fire on the boss of Mr Kipling cakes maker Premier Foods (PFD), accusing him of leading the company into a "zombie-like state" through "five years of failure" '
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.
A big deal with a real name and a serious player which will lead to material profits for Optibiotix (OPTI). What more could we lucky shareholders want? These deals are racking up and will clearly leave the company reporting profits in 2019 and very big profits the year after. That is not discounted in the share price, currently 74p to buy.
Yes that is this afternoon's treat and it reminds me of when the Mrs and I went there to get permission to marry. On the markets I look at China Africa Resources (CAL) - what could possibly go wrong? Then I cover Synairgen (SNG) and the risks folks do not understand in biotech, DiamondCorp (DCP), Premier Foods (PFD), Golden Saint Resources (GSR) and what PR genius Steffi has not told you.
Have I mentioned that Finncap are complete and utter bastards? If I forget to do so in this bearcast please refer to my FinnCap and Wandisco special earlier HERE. Lucian is popping over tomorrow but I shall try to record a sober bearcast before he arrives. On today's podcast I look at Fastjet (FJET), Strat Aero (AERO), Premier Foods (PFD), Hellenic Carriers (HCL) and Outsourcery (OUT), the demise of which will certainly be an ouzo o'clock moment.
Premier Foods (PFD) is one that I have been following with interest over the past week or so since a potential offer for the company was revealed.
Although it can be seen on the daily chart of Premier Foods that the price action of recent months has not exactly been simple, there are certain features which are worth taking note of on a technical basis.
Premier Foods (PFD) has had a very rocky ride over the last few months, since announcing a re-financing package. However, I believe that the share price has hit bottom and that it represents a good longer term buy at these levels. Even in the shorter term it could yield a nice profit with a trade from here if it can break through 62p.