By Malcolm Stacey | Monday 3 July 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Spotters. As many members of her Cabinet are pressing Mrs May and her chancellor to ease back on austerity, I’m reminded that the growing national debt seems to deny that there is any real frugality at all.
However, it will not have escaped your notice that there are many more wealthy people around than there used to be. They are, of course, hugely outnumbered by people getting poorer, but the fact remains that serving the better off is a growth industry.
Which brings us to a company I think might be worth your further investigation. Its name is Joules Group (JOUL) and it sells fairly posh stuff in its stores, on-line and at county shows and similar events. Well, it does flog green wellies. It also has a strong wholesale arm, selling to other retailers. These include High Street giants, like John Lewis and Next.
It has a broad range from fashion to home gear, and has built up some brand names that people like to be associated with.
A lot of its business is done beyond these shores. So if you’re worried about any further weakening of the British consumer market, at least this share should provide some protection from its wealthier overseas buyers.
Its biggest markets seem to be in those ever-strong economies of Germany and the USA.
The City is already tuned into the rosy prospects here and the share price is up by about 80% over the last 12 months. But the trend is usually your friend, unless you see red flags start to wave.
I haven’t spotted any yet, other than the fall in Joe Public’s spending. But, as discussed earlier, that shouldn’t affect the upper end. The company has 2m customers on its database, by the way. That’s a lot.
And a few more than we hold at the Punter’s Return.
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