Next (LON:NXT) at 5,250p, after the second-quarter trading statement, looks lowly rated, both absolutely and historically, and provides an excellent vehicle to ride the sentiment effect of a Gordon Brown-like stimulation of the economy – successfully achieved in 2010 when the UK economy began growing again despite the alarming impact of a world banking crisis. There are…
The greatest technological leap forward for humanity in the second quarter of the 21st Century will be Quantum Computing (QC). It will accelerate computer processing speeds beyond our imagination. It’s a weird world; and yet the first QC inspired computers are already working on problems of mind-boggling complexity. Quantum Theory was formulated in Europe in…
GKN at 290p have pulled back a little on the half-year results. If they were to move down towards 260p again they would be attractive on an estimated dividend yield of 3.6 per cent. In the three years to 31st December 2015 (the financial year end) GKN (LON:GKN), the aviation and automotive engineering company, had two structural…
The ‘efficient market’ theory held sway for quite a time in the ’90s, and for some time afterwards. It held that share prices at all times reflect all that can be possibly known about all the factors that determine their value. When you think about it, that is a pretty sweeping assumption. If there were…
HSBC (HSBA) at 492p: investors can now buy HSBC shares at half the price they were seven or eight years ago on a valuation which is a 33 per cent discount to net assets and on a dividend yield of over 7 per cent. That seems to discount a lot and leave room for long-term appreciation. A little…
Bank shares await the verdict of post-Brexit economic history. The share price chart for Lloyds at 54p gives little guidance. However, well capitalised and on above-average earnings and dividend yields (an estimated 13.6% and 7.4% consensus last seen) the shares look a hold and a speculative buy for those who take a more cheerful view of…
As featured in this month’s issue of Master Investor Magazine Since the dawn of civilisation humans have been fascinated with the concept of flight. From the legendary flight of Icarus in Ancient Greece and the Renaissance sketches of Leonardo da Vinci, to the Wright Brothers’ first successful manned flight in 1903, we have literally reached…
Property company shares, like British Land (BLND), are about location, quality of covenant (i.e. are the leaseholders good for the rent?) and rental yield. But like all equities they are also about quality of management. The management of British Land has played the UK’s recent and remarkable UK property boom brilliantly. Beginning speculatively and ending conservatively, with…
The expression “may we live in interesting times” could have been written with the principal Brazilian stock market, the Bovespa, in mind. Its performance since 2010 – when the author moved to the country – has been a rollercoaster ride. Six years ago with BRIC-mania at its height, the economy was growing at over 7%…
On recent consensus estimated prospective PER of 16 and an estimated forecast annual dividend yield of 3.4% the shares have lost their premium. The share price is well supported by 350p of net assets commanding an enterprise value of around 520p a share. I have not been much attracted to Burberry shares for a year…
