Compound Income
  • Blog
  • Scores
    • Scores Presentation
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact
  • New Page



Another day another downgrade.

23/10/2015

0 Comments

 
Picture
We have seen a few companies down grading expectations recently with Pearson and Home Retail being a couple of notable examples earlier this week. Today, following on from my Monday detour down memory lane which featured UK vice stocks, we have had a Q3 trading update from the bookies William Hill (WMH).

This was a bit down beat as they suffered from strong comparatives in the previous year which included the football (soccer) world cup and a poorer gross win reflecting adverse sporting results for bookies this quarter. They also had the effects of the increased rates of UK gambling duty to contend with too. On the back of this they are suggesting that their full year operating profits will now be towards the bottom of a £291 to £312m range which suggests downgrades on average of around 3.5% to me. So the fall in the share price of nearly 6% this morning to 325p would seem to more than factor that in.

Looking at a two year chart this has taken the shares to the bottom of their range and I note a more recent gap on the chart around the 400p which often gets closed eventually and therefore could provide a medium term target if and the shares should recover at some point in the future. In the meantime the rating seems OK and they should start to be supported somewhat by the near 4% yield, but as ever you pay your money and take your choice or place your bets in this case?

Finally, if you were hoping to see Back to the future Part 3 here today - apologies it has been delayed in post production, but I hope to maybe get it out over the weekend or early next week so don't forget to check back here.

Picture
0 Comments

Monday morning detour down Memory Lane.

19/10/2015

1 Comment

 
Not much news around today, but a good US blogger called Eddy Elfenbein, who I follow on twitter and at his website crossingwallstreet.com, reminded me this morning that it was 28 years ago today that we had the Black Monday of the 1987 crash. Now hopefully we won't have another Monday like that today, although we do have the dreaded US import of the Black Friday shopping event to get through soon I believe.

Talking of the 1987 crash and US imports its funny how your brain works when you start thinking and reminiscing down Memory Lane. That got me thinking for some reason about another US import from that time - a TV show called Miami Vice which you can check out in more detail here if you are not familiar with it and enjoy the opening credits below to liven up a dull Monday. 

My mind then went off at another tangent and got onto vice and and thinking about vice stocks after most of the favourites won in the Rugby World Cup over the weekend, which is probably good for the bookies. As an aside I had thought that Ireland might beat the Pumas and that Scotland would get thrashed but it turned out to be the opposite with Scotland so unlucky to lose out in the end. So probably good for the bookies and checking them out it looks to me like William Hill (WMH) might be interesting down here on a technical basis looking at the chart below.

It trades on 13 to 14x with a yield of around 3.7% including a 4.1p interim worth 1.2% which goes xd this week. It scores OK with a CIS of 65 and a Stockopedia rank of 78 so not too bad as the bookies tend to win in the long run. So...
Picture
...talking of vice stocks I personally don't mind investing in those, although some prefer not to and there are ethical funds available which screen out those type of stocks - armaments, drink, gambling & tobacco. With that in mind how have a collection of UK Vice stocks done in recent years? Well to find out I pulled together a quick chart to see how William Hill, Greene King (GNK), BA Ssytems (BA.) and BAT Industries (BATS) have done against the FTSE All Share over the last five years. As you can see on the chart, which shows percentage change over that period, they have all out performed the index and would also have had higher yields to boost returns further, with William Hill winning by several lengths.
Picture
So there you go if you don't mind investing unethically or in vice as it were then it seem it could be profitable for you. While in another strange mind tangent having coined the phrase UK Vice above I did a quick search and found that apparently there is a site / Company along those lines called Vice which describes itself as specializing in exploring uncomfortable truths and going to places we don't belong. Herein you will find people talking frankly about their hatred and love for various things, general heresy, the only culture, travel and news documentaries you'll want to watch, tons of exclusive new stuff, and probably not a lot of cats. So not sure I would recommend it but check it out if you dare and it has an accompanying twitter feed @VICEUK - so you really do learn something everyday by taking a mind detour down memory lane and here's an appropriate old song for the topic today.
1 Comment

William Hill - Positive Q3 IMS

21/10/2014

0 Comments

 
These were announced this morning which in brief showed a strong performance as sports results turned more favourable and they benefited from the World Cup. Meanwhile their on line and increasing overseas activities also grew strongly helping to offset some shop closures in the UK. On the performance and outlook they said:

"Group net revenue grew 23% in Q3 and 12% in the year-to-date (YTD). Operating profit was up 89% in Q3 and is up 19% YTD, with good operating profit growth across all divisions in the quarter.

Following this strong results-driven quarterly performance, the Group now expects operating profit for 2014 to be towards the top end of current consensus range assuming normalised results in the final quarter."

So further confirmation that the bookie generally wins and with the reassurance on this years numbers they look reasonable value on around 13x with a 3.5% yield, although I note that earnings are forecast to be down slightly next year presumably due to the effects of proposed tax changes in the UK and a more normal year without the World Cup effect. If you are not averse to investing in gambling related stocks then this might be a good way to play it. Probably one to put on your watch list rather than chase it today as it has had a good bounce but you might want to consider on further weakness as they seem to have been building a base recently in the low 300's.

Picture
0 Comments

    RSS Feed

    Google+

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Categories

    All
    32Red
    Aberdeen Am
    Admin
    A G Barr
    Alliance Pharma
    Alternative Telecoms
    AMEC
    Amino Technologies
    Amlin
    Anglo Pacific
    Asset Allocation
    Auto Trader Group
    BA Systems
    BATS
    Behavioural Finance
    Bellway
    Berendsen
    BHP Billiton
    Bloomsbury Publishing
    Bodycote
    Books
    Bovis Homes
    BREXIT
    Britvic
    Catlin-group
    Central Asia Metals
    Centrica
    Character Group
    Churchill China
    Cineworld
    City Of London Investment Group
    Clarkson
    Commercial Property
    Compound
    Computacenter
    Connect Group
    Croda
    Currencies
    Demographics
    Diageo
    Diploma
    Directors Dealings
    Dividends
    Easyjet
    Economics
    Emerging Markets
    Emis
    Empiric Student Property
    Etfs
    Fairpoint
    Ferguson
    Ferrexpo
    Finsbury Foods
    Food Retailers
    Forterra
    Games Workshop
    Gateley
    Go Compare
    Goid
    Greene King
    GSK
    Hargreaves Services
    Hays
    Headlam
    Hedge Funds
    Hill & Smith
    House Builders
    Howden
    HSBC
    IG Group
    Imperial Tobacco
    Indivor
    Inflation
    Insurance
    Intermediate Capital
    Interserve
    Investec
    Investment Trusts
    It
    ITV
    James Halstead
    Jarvis Investment Management
    JLT
    Jupiter Fund Management
    KCOM
    Kingfisher
    Legal & General
    Lloyds Bank
    Maintel
    Man Group
    Market Timing Indicator
    Market Valuation
    Marston's
    Matchtec
    Media
    Merlin Entertainment
    Micro Focus
    Mining
    Mitie
    Miton Group
    Moenysupermarket
    Mondi
    Moneysupermaket.com
    Music
    National Grid
    N.Brown
    News
    Next
    Nichols
    Norcros
    Oil
    Page Group
    Paypoint
    Pennon
    Persimmon
    Personal Finance
    Pharmaceuticals
    Phoenix Group
    Photo Me
    Photo-Me
    Plus500
    Podcasts
    Polar Capital
    Politics
    Portfolio
    Portmeirion
    Provident Financial
    PZC
    Qinetiq
    Ramsdens Holdings
    Rank Group
    Reckitt Benckiser
    Renewable Energy
    Renew Holdings
    Renishaw
    Research Papers
    Restaurant Group
    Retailers
    RIO
    RM Group
    Rolls Royce
    RPC
    RPS
    Safestore
    Sage
    Sainsburys
    Savills
    Schroders
    Scores
    SCS Group
    Sell Discipline
    Shareholder Yield
    Share Picks
    Short Interest
    Somero
    Spectris
    Sprue Aegis
    SSE
    Stock Spirits
    S & U Plc
    TalkTalk
    Taptica
    Tax
    Technology
    Telecoms
    Tobacco
    Trading Ideas
    TSB
    TUI
    UK Market Update
    Unilever
    Utilitywise
    Value
    Victrex
    Vodafone
    VP.
    Water Utilities
    WH Smiths
    William Hill
    Wynstay
    XL Media
    XP Power
    Yield
    Zytronic

    googleda4a17cac6d02bb9.html
    File Size: 0 kb
    File Type: html
    Download File

Powered by Create your own unique website with customizable templates.
  • Blog
  • Scores
    • Scores Presentation
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact
  • New Page