Robert Sutherland Smith

Wolseley’s dollar earnings make it an attractive Brexit play

Wolseley’s dollar earnings make it an attractive Brexit play

3 mins. to read

I dubbed Wolseley shares an appealing post-Brexit play last June when the share price was 3,781p. I see no reason to alter that fundamental judgement even now that they are 4,244p. The latest annual results suggest that life remains tough at the operational level, with margins scarcely improving. However, outside the US the company has the…

ONS data could be masking the full implications of Brexit

ONS data could be masking the full implications of Brexit

4 mins. to read

Investors should not assume we have seen the full implications of the UK decision to go it alone. Like history, the future is another country; they do things differently there. One of the useful things taught in economics, is to distinguish between the ‘short term’ and the ‘long term’. John Maynard Keynes (whose wisdom has…

Morrisons: Leaner and meaner after turnaround

Morrisons: Leaner and meaner after turnaround

4 mins. to read

Wm. Morrison was a buy! You heard that message here last month ahead of these first-half results, and in the face of a massive uncovered bear position. (Clearly, too many hedge fund managers shop at Harrods and not Morrisons!) The grocer has managed to keep its customers happy, and the share price has responded in kind.…

Weir Group recovery to pump-up returns

Weir Group recovery to pump-up returns

4 mins. to read

I had started this rummage in the hope of finding an underpriced investment. What I have discovered is a fairly valued share with, up until now, strong upward momentum, which seems to be coming back to its established trend support at around 1,500p. If the price does bounce from there it supports the view that…

The UK equity market early autumn 2016?

The UK equity market early autumn 2016?

4 mins. to read

Does one chase this market into the mist and mellow fruitfulness of September or are most of the blackberries gone leaving only the thorns? According to the FTSE Actuaries Share Indices published by the Financial Times last week, the FTSE100 Index was valued at nearly forty times earnings and on a dividend yield of 3.7…

IAG hits some Brexit turbulence

IAG hits some Brexit turbulence

4 mins. to read

IAG at 392p, after the first-half figures, looks very cheap in cash and operating cash flow terms, which also makes the prospective estimated dividend yield of 5 per cent look credible and safe. The price remains below the price on Brexit referendum day. IAG is of course still flying but no longer flying as high as it was back…

Can Persimmon Build on This Recovery?

Can Persimmon Build on This Recovery?

4 mins. to read

I last wrote on Persimmon (PSN) shares last month when they were languishing at 1,239p and it struck me that they were looking remarkably good value on the fundamentals. It is always a bit risky calling shares before the actual results but where there is risk there is the potential for reward as well. I hasten…

Is It Time to Take Profits at Rio Tinto?

Is It Time to Take Profits at Rio Tinto?

4 mins. to read

Rio at 2,458p (last seen) has a lot of room for a share price pull back. Finding cash for investment and dividends must be a struggle.  Rio Tinto (LON:RIO), the largely iron ore and copper mining stock, may be in the process of a long recovery but it nevertheless has scope for a big, within trend, downward…

Is British American Tobacco’s Brexit Bounce Over?

Is British American Tobacco’s Brexit Bounce Over?

4 mins. to read

BAT’s sales and earnings are on the rise again. However, the shares are full of profit given that the share price has risen by a third over the last year. By past standards the shares do not look particularly cheap. Last year’s dividend yield is only 3.1%, and this year’s and next are estimated at 3.3% and 3.5% respectively. I judge the shares a ‘hold’…

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