Company research
Hi everyone, I’ve really enjoyed the podcast so far, so was happy to subscribe. I would love to know how the round table investors approach their research for companies. Do you have a specific approach to reading annual reports? How do you approach industry research? and how important is meeting with management or AGM attendance for you? Thanks. John
Supreme PLC - Am I too late at 128p
Supreme PLC claim to have a "winning business model" that is based on being ultra low cost and also stripping out almost all the Head office costs from acquisitions. With H1 turnover and eps likely to increase by at least 50% to a new record, is it too late to buy at 128p? (They hit a post-IPO low of about 70p last year after a profit warning and a strategic decision to cut the dividend payout from 50% of profits to 25%)
Fevertree Analysis
Hi Team Fevertree (in theory) is in a great line of business with a fast growing international footprint and a premium brand. It also has a founder / shareholder as CEO, and other than a tiny fall in sales in FY2020, the company has a brilliant record of overall sales growth. And yet, despite growing sales, profits have now been falling for 5 years. Whilst the pandemic has caused a dip in the profits of many soft drinks companies, this has not been universal, and some others are now exceeding their pre-pandemic profits. Has Fevertree lost it's way, was there always a flaw in this business, is it actually a basket case or is there some other interpretation of this situation? And if this slump in profits is actually just a whole heap of bad luck then what should the share price be? I'm definitely interested in your analysis and perhaps your views on whether or not any other drinks companies are great value right now. Regards Charles PS thanks for answering my Supreme questions. FWIW I took advantage of the big falls in the past week or so to make some top ups to my position. Hard to tell if that is the right thing to do, but I do like the management and the history.
Valuing a Company
I was wondering if you could answer the questions below; How do you value a company - do you use certain key ratios or another method Do you tend to put a target price on your investments and if so what is this based upon Do you sell when they reach this target price - or is there any other method you use for determining that you want/should sell All of the above are areas where I have struggled - it is extremely difficult to work out the “value” of a company and at what point I am looking to trim my holding/take profits. Best wishes - really enjoying the podcasts.
Strix - investing lessons
It would be great to see the PIP crew examine the latest profit warning from Strix. Sadly, I am a long suffering shareholder who has committed the cardinal sin of hanging onto the share despite having lost confidence in the prospects of the business, rather than crystallise the loss. One of the things that has stayed my hand is the CEO having a not inconsiderable holding in monetary terms (although a lot less now!). I know Maynard has written a Sharepad article about the company and would love to hear the team run the slide rule over the company again following this warning.