Intention to Float - UKLA - DFS Furniture Limited, should thrill those whom want an almost identical sofa as their neighbours. In discussions yesterday its suggested DFS are getting the IPO away (like SCS) as the trend cyclical and towards the peak. Its something that needs a little more work on, but all the same, when the company is surprised by their own performance but with no mention of this within the IPO docks one thinks they're chancing their arm.
DFS don't do premium brands which excludes a significant number of middle earners. Having just purchased la-z-boy electric recliners for my crib, I'm inclined agree. The shrewd will not be short initially, with a degree of seasonality to the sales and sector will this be akin to longing Majestic Wine (MJW) through Christmas to sell in January, save for this year.
There's some deflation happening in RSA (Republic of South Africa) at the moment with Anglo American's (via AmPlats) sale of Bokoni mine in Limpopo. The reported figure is $263 million down from the $385M before Christmas. they'd only have to wait a few months before they could just gift-aid it. AmPlats will no doubt be happy with any taker, Atlatsa Resources (ATL.TO) may be a different story whose price appreciation was last seen during the Jurassic period.
Today's no news award goes to Tate & Lyle, the views from EMC are known, Sugar is in a dire position. The update is more of a bitter after taste (perhaps stevia like). Investors should consider this another shot across the bows for the sugar investors.
EMC was wise enough to spot the ethanol margins but the market and certain analysts seem to have ignored the swell in bio-fuel inventories. We'll save the face of one individual at a certain brokerage the shame of what he thought of my ethanol mumblings, only two weeks ago with a side thought for banks including ethanol. So TATE's trading update slots perfectly into the category knows as a profits warning, we'll ignore the issues with High-Fructose Corn Syrup (HFCS) for now.
Oil's over to the big boys to speculate and acquire positions, with the majority on the sidelines, the speculation and big bets are pinned on a recovery by December 2016. One is getting the impression the traders are holding their fingers in the air and misreading the wind which is really a draft. CAPEX reductions will not change the supply immediately, demand will.
With Afren's interest now looking more than likely to assets only, will the bond holders be taking the company? The longer-term view assuming the market is correct will mean the bonds are looking more like a semi-decent bet.
Copper has decided to find parallels with oil hitting $2.5761/lb on little more than physical buying...could the commodities cycle be on the turn or more a blip in the lower lowers and consolidating positions after significant drops.
It was amusing the banter from the long only contingent today with their reviews of Poundland's (PLND's) acquisition of the 99p stores. Yes, perhaps a timely reminder to stick with the original valuation of £4, having sold in November for pretty much what I paid, today they aren't far off my target of £4 which should be reviewed.
Atb Fraser
Fraser- Hi- not sure if I am seeing any value in any of the spate of IPOs heading down the shute-- based in the 2014 batch, the recycling bin is stuffed with unwanted VC bailouts. Good luck to most IPO buyers at present.
ReplyDeleteRe Oil price- the theory is the rig count, which has dropped v quickly and the capex cuts in the last few weeks have created a floor-- well if its a floor its one I would like to rely on, more a thin ice sheet over a v chilly lake. The elephant in the room is surely the demand side, which is fragile at best and somewhat distorted by massive storage at present in my view anyway. So perhaps a false dawn with another drop to test $40 for WTI in the coming months. In the meantime perhaps the AFR board that are left in place are trying to persuade SEPL to take on a 3rd purchase in a few days-- the deals yesterday looked well timed with Chevron wanting out, so perhaps SEPL will be in a v v v charitable mode :-)) Mr Muppet and his herd are certainly ordering their superyachts on that basis.
Cheers. The Leggie