Morning once again...Having gone long MKS (Marks & Spencer) purely on a technical level post 443 its surprising to be in profit . MKS I covered yesterday, technically speaking (and consensus with me currently) appearing as though MKS is being driven by a significant short squeeze. A risk of the negative game and something always to be considered where sentiment has been so negative for so long, in fact it should be number of your risks list, just below "margin" unless of course you like to operate at stress levels.
With a similar occurrence happening today in MRW, I fail to see the positives in Morrison's turnaround story so far. There's a long way to go, the discounting is to get people back in the stores which is rather obvious really. The management, like Tesco, are getting back in touch with their customer. The Sun campaign, could be heralded a success on the basis of today's interim management statement, as they could have been worse.
Sales declined with the total *excluding fuel were down by 3.6% (down 5.6% including fuel), and like-for-like* (LFL) sales were down 6.3% (8.0% including fuel). Online contributed 0.7% to LFL during the period. The relief is in the proactive management and buying is on the basis the management can add value at these levels, its more than likely. The net debt position is looking better than proposed £100m +ve. MRW now expect year-end net debt to be £2.3bn-£2.4bn, £100m better than initially guided and £400m-£500m lower year-on-year.
Its customary when volume and price appreciation in a stock happens to ascribe some form of justification other than certain parties being caught on the wrong side of the fence and buyers in the market. So with that in mind, its wise to reiterate the PE (Private Equity) story doing the rounds today. The key focus for PE being the online and debt levels, both of which positive and net debt is more than serviceable. The advantage with MRW is they haven't got a property portfolio with as many complex swaps and lease agreements as others [namely Tesco]. That's a quote from a chap reading whom has a very good understanding of PE requirements, + he's clearly is overpaid.
Leggie, unlike poker and mugs (which we'll come to) one will honour the wine, despite it coming via a third party (:-)) rather than double the bet on PE interest. Albeit MRW has significant potential without a market listing. In fact, the attraction as an investment case could be stronger unlisted than listed, save for the PI holdings.
Whilst typing this yet again its been wise to close further positions on MKS (the longs), one hopes the short only contingent can forgive me or get the car park ready for a second coming! The same for MRW...
Tate & Lyle's results were unsurprising really and when considering the dire state of sugar, one would be wise to consider corn, wheat and soya prices as well mirrored in part by phosphate/fertilisers and bumper harvest (as commented here). Palm Oil is recovering (more essential) thus deserves a premium. Carrying on from the FTML discussions, sucralose is still causing a sour taste (I know). One would be wise to keep a close eye on the Mexican US sugar debacle with High-Fructose Corn Syrup (HFCS) which has been going on near 13 years to the day.
TATE's declines of Circa 37% are dire, (2013: 112M) today £66M. TATE would be wise to listen to the audio-cast by Chief Executive Javed Ahmed and Chief Financial Officer, Nick Hampton. Debt increases are welcome either albeit they're well financed. Over to the TATE for the summary, "Overview The Group’s results for the first half of the year
were significantly held back by operational and supply chain disruption and an
increasingly competitive market for SPLENDA® Sucralose." Or as Mr Ahmed calls the results "extremely disappointing." (Around 8 mins in). It's wise to listen to Mr Ahmed about labelling, texture sweetness and labelling. With the worst out the way TATE could be justifying a long...patience is best suited. How does TATE look in comparison to PureCircle...one for later, as I'm late for my R&R FTML.
With delight, its nice to read the messages, its a shame people request they aren't not published as some are and have shown to be very valid especially with Sweett Grp and the like; they are known as the noisy whispering folk. The upset element will get published save for certain censorship items such as swearing and inappropriate references.
Thanks goes to John C his concern that that my trading has sufficiently "funded my funeral." I would be wise to stick to Zebra crossings? Likewise, its safe to say he should stick to premium bonds with a vehement belief he'll make his £1.65 on POG (Petropavlovsk) where apparently I'll be laughing on the other side of my face. Sadly John C hasn't realised POG's debt position or their current position. So would he please look at the price of gold being $1,144.44/oz (no charge), their debt and the financing position of the debt/bondholders.
The top quote goes to a long only, shorters are scum comment about hoping I die of a death and go out of this world dead. Biology was never my strong point at school. I've edited both posts to avoid offence...
Thanks goes to John C his concern that that my trading has sufficiently "funded my funeral." I would be wise to stick to Zebra crossings? Likewise, its safe to say he should stick to premium bonds with a vehement belief he'll make his £1.65 on POG (Petropavlovsk) where apparently I'll be laughing on the other side of my face. Sadly John C hasn't realised POG's debt position or their current position. So would he please look at the price of gold being $1,144.44/oz (no charge), their debt and the financing position of the debt/bondholders.
The top quote goes to a long only, shorters are scum comment about hoping I die of a death and go out of this world dead. Biology was never my strong point at school. I've edited both posts to avoid offence...
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