At this stage nobody knows how much wreckage will emerge from the liquidation of Carillion (LON:CLLN). But far-sighted hedgies are looking at what could go on at Capita (LON:CPI). Here, at 397p, CPI is capitalised at £2,650 million as against tangible net liabilities of £3,200 million. This is too much of a gap and, were…
Traditionally investors have been able to diversify fairly simply by using a mixture of bonds and equities, but with the world’s central banks starting to reduce liquidity there is a good chance that both asset classes will weaken in unison. Many alternatives also look vulnerable, which creates a major challenge for fund investors who want…
One of the City’s most prominent female entrepreneurs and founder of Netwealth Investments confirmed as speaker for Master Investor Show 2018. On Saturday 17 March 2018, the Business Design Centre in London will host the16th annual Master Investor Show. In a panel discussion compered by renowned UK financier and entrepreneur Jim Mellon and joined by market commentator…
To Benjamin Braddock (Dustin Hoffman in Mike Nichols’ film The Graduate), the well-meant one-word piece of advice was “plastics”. To the godfather of value investing, Benjamin Graham, the well-meant three word piece of financial advice was “margin of safety” – and that one happens to have lasted the test of time. Faced with the challenge…
Developing countries like Kenya tend to have shockingly high rates of unemployment. But that should not deter investors – rather it is a sign of potential. Worrying numbers When I wrote last week that Kenya has an unemployment rate of 38 percent, a number of colleagues questioned that figure. How could it possibly be so…
I was told perhaps nine years ago that Carillion’s (LON:CLLN) accounting was highly questionable. And by no means was I alone. The surprise is that it has taken so long for all this and its effect to emerge. I hope HMG’s lawyers have been sensible when entering into contract with CLLN to ensure HMG’s losses…
While the mood among most investors is relatively upbeat at the moment, it is almost inevitable that there will be a stock market crash in future. This may sound pessimistic, but history shows that asset prices have never risen in perpetuity. This means that while a bull market is currently in its pomp, bear markets…
Hexed: Contrary to expectation on the part of the market, Mr Rollen of Hexagon AB was yesterday evening publicly found not guilty. The effect was an inevitable 5% rise in Hexagon AB’s share price this morning. However, this still leaves Hexagon AB a clear short above 400 Euros. The balance sheet is appalling and the…
A modern economy can only function efficiently if its infrastructure is up to the task. Essential assets like good quality roads, bridges, railways and hospitals play a vital role in all of our everyday lives, but these facilities are expensive to construct and maintain and command premium prices. Historically most of the critical infrastructure in…
From 1st January all investment trusts have had to publish a Key Information Document (KID) before their shares can be made available to retail investors. This sort of standardised information can be useful, but unfortunately some of the prescribed content can be highly misleading. One of the most surprising aspects of the new KID is…
