Tesco is a boring Buy and Imperial Brands shares still look good also writes Chris Bailey...

Simec Atlantis Energy about to be screwed by the rain-sodden post industrial second world country that is Wales – this is a zero says Tom Winnifrith HERE

I've been impressed recently by a couple of corporate updates. I wrote about Imperial Brands (IMB) most recently back in May, noting that despite never being a smoker I thought the stock was still a buy. It has hardly romped in recent months - including lately - despite what seems to me a pretty good pre-close trading update. Imperial Brand’s full year results are due in just under six weeks time, but it says that it has ‘made good progress in implementing our strategy through a sharper management focus, greater investment behind our priority combustible tobacco markets and new market trials in heated tobacco and vapour’. And even if it is still talking about higher tax rates, ‘we remain focused on strengthening the balance sheet and continue to make progress towards achieving our target leverage of the lower end of our 2-2.5 times net debt to EBITDA range on a sustainable basis’. Certainly the key of next month’s update is only partially on brands such as JPS, West, Davidoff, Winston and Kool, considering also its ‘Next Generation Products’. The world of cigarettes is changing at many levels, but it is good to read the corporate update. More thoughts in November whether I still have a £20+ target price, but based on what I have read I continue to hold my shares despite their 2% fall to just over 1520p. And how about Tesco (TSCO) shares?

Read from Nigel Somerville HERE: Sosandar – H1 Trading update looks good, but……

Back in April I observed that they were a hold ‘but a dull one’. Correctly, I was a bit more focused on shares in Morrison (MRW) which have performed rather well this year given the takeover news. But what about Britain’s largest supermarket name, especially given I recently read that ‘Tesco takeover is not out of the question’. It was not something I had particularly considered to be a viable angle, but what about after half year numbers?

Breaking HERE: Fantastist penny share huckster Chris Oil facing bankruptcy order from broker within two weeks - City source

Well the good news is heightened full year profit hopes and the announcement of a £500 million buyback programme, with the latter implying a total return to shareholders (i.e. dividends and buybacks) to over 5% of the market cap. As for the heightened profit hopes, if I conservatively include the lease liabilities to the debt line total net debt at the end of the first half was £10.2 billion. A corporate EV of c. £30.6 billion, a c. x12 EV:EBIT multiple for Tesco shares is no disaster. No wonder the stock is up 4% as I write. After all in a world of a bit more inflation, companies like Tesco are going to have more options out there than many other sectors. So whilst it was good to concentrate on Morrison shares in the space earlier this year, that story is now over but holding onto my Tesco shares - may have been a bit boring or dull - still looks to make sense.

Read HERE: Hardide – argues pleased with trading improvement, but it’s a revenue miss...

Elsewhere in the first half numbers, whilst I was not surprised to see the bank division returning to growth it is only about 5% of profit – a broadly equivalent percent to the Tesco Central Europe business. Post the Asia deal, the UK & ROI business is the absolute focus with its Clubcard skills, online capability, generally ‘serving a little better every day’ and finding solutions to the various supply issues out there. As I observed before - as driven by prior CEO ‘Tesco Dave’ - you certainly do not need to go to the German retailers (even if cost is your only focus). His successor Ken Murphy is doing alright. And as for the company being a takeover target, don’t bother hoping for it. Hoping for a bid never really makes much sense for any company. Nevertheless even I wonder if we will see Tesco shares at one point in the next year or two at/above a 300p share price. It is a bit boring that this is only 15% above the current share price, but if you chuck in the dividends too it is way better than having your money in the bank. Buy.

Read HERE: Thruvision – argues “pleased” with first half trading update, but what about the balance sheet?...

Filed under: Tesco, Imperial Brands, Simec Atlantis, Sosandar, Chris Oil, Hardide, Thruvision

easyJet - full-year results, I remain a believer writes Chris Bailey...

12/01/2021

More reasons why I am still a Headlam Group fanboy says Chris Bailey...

11/30/2021

Triad Group - further share price upside as strategy further plays out suggests HotStockRockets...

11/29/2021

Coral Products - Haydock property sale completes and adds to cash backing, Buy...

11/26/2021

Horizonte Minerals - secures funding package. Remains a long-term Buy says Gary Newman...

11/25/2021

Cranswick is about much more than just sausages. Buy says Chris Bailey...

11/24/2021

Prime People - interims show encouraging trading recovery we anticipated, Buy...

11/23/2021

Wishbone Gold - drilling potential excitement as preparations underway. Buy says HotStockRockets...

11/22/2021

Red Rock Resources - DRC & projects updates, interesting potential and a Glencore legal bonus?...

11/19/2021

Time to re-buy Wood Group? Chris Bailey writes...

11/18/2021

Johnson Matthey - share price plummet on battery materials news a buying opportunity?...

11/17/2021

Burberry & Aviva - what to do now? Chris Bailey reviews...

11/16/2021

Pharos Energy - timely progress in Vietnam. Buy says HotStockRockets...

11/15/2021

Coral Products - demonstrating its profit opportunity. From HotStockRockets...

11/12/2021

I am warming up to Tate & Lyle says Chris Bailey...

11/11/2021

The Asiamet deal with Delta Dunia is better than the market is valuing it at says Gary Newman...

11/10/2021

Nice to see BT shares back above 150p and there is more to come considers Chris Bailey...

11/09/2021

BP - Q3 results, positive cash generation and shareholder returns...

11/08/2021

Essentra - Q3 update, adds corporate excitement potential...

11/05/2021

Stop watching constant COP26 and start looking more at Ibstock suggests Chris Bailey...

11/04/2021

Petrofac - issues resolved in time to take advantage of oil & gas boom? Gary Newman reviews...

11/03/2021

Serica Energy - Buy, the market has overreacted to slight delay considers Gary Newman...

11/02/2021

Zytronic - a significant improvement in trading Buy says HotStockRockets

11/01/2021

Kefi Gold & Copper - security concerns being resolved, upside ahead...

10/29/2021

Johnson Matthey should see recovery with also green energy potential says Gary Newman...

10/28/2021

Stock selection is always fun - Reckitt, Whitbread & Essentra. Chris Bailey writes...

10/27/2021

HSBC deep yawn. Take a look at Prudential instead suggests Chris Bailey

10/26/2021

Metals Exploration - Q3 update, project improvements and more coming...

10/25/2021

Tharisa - Q4 update delivers as we expected, looks more to come...

10/22/2021

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10/21/2021

Asiamet Resources - a speculative buy suggests Gary Newman...

10/20/2021

Playtech - what to do following agreed bid writes Chris Bailey...

10/19/2021

Atalaya Mining - Q3 performance sees increased production guidance, further share price upside

10/18/2021

OptiBiotix Health - interims, much more to come...

10/15/2021

Barratt Developments & Vertu Motors - more progress says Chris Bailey...

10/14/2021

Orcadian Energy - good farm-out and direction of travel. Buy says Peter Brailey...

10/13/2021

Central Asia Metals - Q3 operations update boosts shares, looks more to come...

10/12/2021

Imperial Brands - full-year trading statement, Income Buy...

10/11/2021

Headlam - still a Buy following CEO change? Chris Bailey reviews...

10/08/2021

Tesco is a boring Buy and Imperial Brands shares still look good also writes Chris Bailey...

10/07/2021

Panther Metals - a more drilling speculative buy says Nigel Somerville...

10/06/2021

Horizonte Minerals remains on track to reach production at Araguaia. Buy says Gary Newman...

10/05/2021

Jadestone Energy - new well onstream further boosts shares, more to come...

10/04/2021

Anglo Asian Mining - interims, remains a Buy...

10/01/2021

Good news for both easyJet & Smiths Group shareholders says Chris Bailey...

09/30/2021

United Oil & Gas - potential upside far outweighs the risks considers Gary Newman...

09/29/2021

Metals Exploration - interims, more to come as access to further resource is developed

09/27/2021

Tandem Group - positive interims & outlook...

09/24/2021

PZ Cussons - a bad day Buy suggests Chris Bailey...

09/23/2021

Touchstar - interims & expects full-year ahead of expectations, Buy says HotStockRockets...

09/22/2021

Kier Group will undoubtedly like more government spending says Chris Bailey...

09/21/2021

Jadestone Energy - interims, production and cash flow growth to come...

09/20/2021

B.P. Marsh & Partners - half-year trading update, reasons for confidence...

09/17/2021

AltynGold - interims, results of capex look promising...

09/16/2021

Horizonte Minerals - project funding nearing a conclusion. Buy says Gary Newman...

09/15/2021

Wishbone Gold - further step to exploration progress. An update from HotStockRockets...

09/14/2021

Gold & Bluebird Merchant Ventures a buy? Nigel Somerville writes...

09/13/2021

Asiamet Resources - drilling update highlights further potential, Buy...

09/10/2021

CMC Markets - buy the recent weakness? Gary Newman reviews...

09/09/2021

Still a Headlam lover post its first half numbers says Chris Bailey

09/08/2021

EnQuest - interims, some production disappointment but still clear value potential?...

09/07/2021

Jadestone Energy - long-term attractions from this successful share tip?...

09/06/2021

Essentra - further recovery upside...

09/03/2021

Barclays - acquisition news. Still two quid & out? Chris Bailey reviews...

09/02/2021

Polymetal - value & growth potential? Gary Newman writes...

09/01/2021

Kefi Gold & Copper - more positive news considers HotStockRockets...

08/31/2021

Kefi Gold & Copper - Tulu Kapi funding update. Positive but how much?...

08/27/2021

Touchstone Exploration - Q2 update, remains a Buy says HotStockRockets...

08/26/2021

Anglo Asian Mining - Zafar maiden JORC Mineral Resource adds to potential

08/25/2021

Ibstock - based on broader issues than the Sunday press suggested, but a buy says Chris Bailey

08/24/2021

SkinBioTherapeutics - Business Update, high margin profit potential moving closer...

08/23/2021

OptiBiotix Health - extends Seed Health territories. Strong Buy...

08/20/2021

Jubilee Metals - positive production and prices says Gary Newman...

08/19/2021

BP - Q2 2021 results, creating value now & for the future?...

08/18/2021

When the FTSE 100 dumps next, have a look at Prudential says Chris Bailey

08/17/2021

Empresaria - longer-term upside, but what about the short-term? A review from HotStockRockets...

08/16/2021

Seed Innovations - a buy again? A review from HotStockRockets...

08/13/2021

Ariana Resources - more drilling results & time to buy more? Nigel Somerville writes...

08/12/2021

Still a Rolls-Royce believer says Chris Bailey...

08/11/2021

Gold and gold stocks - what is ahead? Nigel Somerville reviews...

08/10/2021

OptiBiotix Health - shares up on trading & commercial update, much further to go...

08/09/2021

Impellam - half-year recovery but more to come...

08/06/2021

Empresaria - half-year trading update, recovery building says HotStockRockets

08/05/2021

Johnson Matthey - still excited about prospects writes Chris Bailey...

08/04/2021

Rio Tinto - the story remains so much more than just cultural heritage says Chris Bailey

08/03/2021

Metals Exploration - Q2 challenges but a better outlook considers HotStockRockets

08/02/2021

Castillo Copper - further copper intersections & visible mineralisation, Buy

07/30/2021

British American Tobacco shares continue to offer attractive total return hopes says Chris Bailey

07/29/2021

Reckitt - recent share price decline too severe? Chris Bailey reviews...

07/28/2021

Centamin - remains a buy following Q2 report says Nigel Somerville

07/27/2021

Union Jack Oil - West Newton update, clear upcoming catalysts...

07/26/2021

Bluebird Merchant Ventures - operational update shows progress is being made, Buy...

07/23/2021

Saga offers interesting exposure to the travel industry bouncing back considers Gary Newman

07/22/2021

easyJet - ten quid or more share price again by the end of the year? Chris Bailey writes...

07/21/2021

Headlam Group - a recovery buy?...

07/20/2021

Burberry - chav challenges? Chris Bailey reviews...

07/19/2021

Orcadian Energy - a newly-listed AIM oiler Buy suggests Peter Brailey...

07/16/2021

Kosmos Energy - production & share price upside potential says Gary Newman...

07/15/2021

Cairn Energy - a lot to like at this price? Gary Newman reviews...

07/14/2021

DS Smith - further recovery & structural growth potential following full-year results?...

07/13/2021

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