Sometimes I break my own investing rules. For example in the last post I mentioned how classic value investors avoid financial firms due to the historical instances of weak balance sheets and cavalier use of leverage. I took a particular swipe at Fairpoint Group (FRP) commenting that: assets of £10.6 million is listed as ‘unbilled income’ – well if income is unbilled how … [Read more...] about Long Provident Financial at 585p
Ever since FTSE 100 home improvement retailer Kingfisher Plc (LSE: KGF) published their Q1 results on 24 May the shares have steadily plummeted by just under 20% on the back of like for like revenue declining by a whopping 0.6%. It's not as if Kingfisher at group level are losing money. CEO Véronique Laury puts the revenue decline down to 'weaker sales in France and some … [Read more...] about Long Kingfisher at 299p
Apparently Love Island is a very popular TV show run by FTSE 100 stock ITV (LSE: ITV). I wouldn't know since I do not have a TV. But even though the series has broken viewing records recently it was not enough to prevent revenues, pre-tax profits and earnings from declining for the first half of the year. More worryingly the net pension deficit rose from £64 million to … [Read more...] about Love Island Not Loving Enough For ITV’s Revenue, Profits and Earnings
1. Make sure the company behind your stock is large Stocks are like women. Different sizes, different temperaments. They are both whimsical and irrational in their behaviour. One minute they can be shooting to the moon, the next they can be crashing to the floor. The investor who invites such volatility can be guaranteed an emotional roller coaster ride without … [Read more...] about The Five Commandments of Value Stocks
I covered BT recently where we took a brief look at it's accounting scandal in one of it's Italian businesses and decided that it did not have a sufficient margin of safety to buy stock. At the same time BT (LSE: BT.A) reported a 51% decline in third quarter in net profits as a result of the Italian business write-down. Compounding the issue BT warned revenue for the … [Read more...] about Is There A Clear And Present Margin Of Safety In BT Stock?