Phil discusses how companies are coping with rising costs and supply chain pressures and why the FTSE 100 could perform well.
Quality Shares Weekly: 29th October 2021
Month: October 2021
Is Shell the ultimate value stock?
One activist investor thinks so, and his plan to unlock it makes sense
“Usual pile of baffling and conflicting financial nonsense that nobody understands. Anyway, the Debt is lower” was the verdict from top fintweeter @WheelieDealer on results from Shell yesterday. It’s hard to disagree, mainly because of the huge distortion of the reported figures as a result of the mark-to-market accounting treatment of the derivatives it took out during a year of oil market craziness. Either way the market didn’t like the numbers, with the shares falling over 3% after a good run on the back of the surging oil price.
Invest-ability Daily 28/10/21: The Confetti Budget
The Chancellor is spending big, and shareholders will be footing the bill
It seems that Rishi Sunak has discovered Labour’s Magic Money Tree – it was next door to Talk Radio host Mike Graham’s … Read more
Free to read:Is the stock market too downbeat on Dr Martens shares?
Invest-ability Daily 27/10/21: Tesla-mania
Why Tesla’s surge should remind us to embrace our inner bear
I didn’t want to write about Tesla this week, mainly because everyone else is. But I suppose you can’t really ignore the … Read more
Invest-ability daily 26/10/21: Hot Property
One section of the property industry is enjoying the supply chain crisis
There is a new shortage in town: warehouse space. According to estate agents, the amount of warehouse space available to rent in … Read more
Invest-ability daily 25/10/21: Higher and Higher
Shares in good companies are getting very expensive
I’ve been having a lot of fun messing around with SharePad’s filtering tools this weekend – I can’t let Phil have all of the stock screening … Read more
RELX: Data rich
RELX's data has made it a very profitable company. Its Risk division is its best business but looks like the only one capable of decent long-term growth.
As a theme, I think data is one with very attractive long-term potential. The combination of huge amounts of proprietary data combined with an ability to analyse it and turn it into something useful can create substantial amounts of value for investors.
Rentokil: In a good place
The long-term market for pest control services remains favourable. Rentokil is well placed to profit from it.
Rentokil is the global leader in pest control where demand for its services is only likely to increase given continued population growth and an increased tendency for people to live in cities - especially in emerging markets.
Unilever:Encouraging signs
Unilever is raising prices to offset cost pressures. Sales from new products suggests that the company is heading in the right direction.
Unilever is a very good business and ticks many boxes as far as a quality share is concerned. I can see why fund managers such as Nick Train and Terry Smith like it.