One-off gain flatters Fisher's figures
Sunday 27 August 1995
But despite moving away from commodity foods under new chairman Stephen Walls, earnings quality remains low. Even Albert Fisher's own broker, de Zoete and Bevan, thinks further share price performance will be constrained. The shares have risen from as low as 38p in April to 55p, as investors realised the thinly covered dividend, yielding 8.6 per cent, was safe. But doubts about a maintained payout next year must remain if, as forecast, cash flow is no more than neutral. Best watched from the sidelines.
UNLIKE Albert Fisher, defence engineering group GKN is beating even the most optimistic market forecasts. Recent interim results prompted a spate of upgrades and left analysts purring at Westland Helicopter's pounds 4bn order book. According to stockbroker Albert E Sharp, aerospace profits may even surpass automotive contributions by the end of the century. That makes GKN (763p) more resilient in a cyclical sector and justifies a p/e ratio of 14 times 1995 earnings.
THE superstore chains are squealing less about price competition these days, notes broker Henderson Crosthwaite. Smart marketing moves and the onset of price inflation have created comfortable trading conditions. The easing of price pressure is particularly helpful to the Argyll-owned Safeway, undergoing a radical overhaul. At 349p, the underperforming shares are the cheapest in the sector, argues Henderson, based on a 1996 p/e of less than 14 and a gross yield of 4.7 per cent.
INVESTORS call the turn in Reuters at their peril and a two-way pull is again being exerted on the shares. The bounce in the US dollar augurs well, while the demand for suppliers of information is stronger than ever. But many of Reuters operations are in a state of upheaval as the banking industry consolidates. The board's warning that revenue growth would be slower in the second half confirms broker Charles Stanley's bearish stance. Although dividend payments are set to increase above the rate of earnings growth, the forecast 2 per cent gross yield is not enough to give the shares, at 289p, much support.
SHARES in Unipalm (474p) received another boost last week when Europe's leading commercial Internet service provider revealed it was in talks that might lead to a bid in the coming weeks. Telephone giants BT and AT&T of the US are favourites to swoop. Unipalm shares have risen by 159 per cent in just two months. Yet Net- scape, the US Internet software company, was floated on over 40 times annualised sales, implying a share price for Unipalm of pounds 38. But don't worry if you have missed out on the excitement. Several other UK-based Internet providers being lined up for a stock market flotation should give investors opportunity to join in the fun.
- 1 Disney heiress Abigail disowns her share of family profits in West Bank company
- 2 The secret report that helps Israel hide facts
- 3 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 4 Ebola virus: UK health officials issue warning to doctors as experts admit the outbreak 'is not under control'
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
MH17 crash: Black boxes show plane suffered 'massive explosive decompression' following shrapnel hit
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...