magazine archive
magazine archive
Editor's View
Companies and investors need to avoid short-termism
Thursday 01 Feb 2018Last week I met the manager of a global fund who made a very interesting comment about the companies he meets in Japan. He said his most rewarding conversations are the ones about industry rather than quarterly earnings. Japanese directors, in his view, are more likely to engage in a lively...
The underappreciated risk to a strong oil price
Thursday 25 Jan 2018The recovery in the oil price to $70 per barrel is one of the most significant events to happen in the natural resources industry for a long time. It transforms the finances of many companies and it should open up development of new projects and rejuvenate the supply chain. While we discuss the...
Why an obsession with growth can be dangerous
Thursday 18 Jan 2018The liquidation of construction services business Carillion ( CLLN ) is dominating the front pages and we discuss the fall-out in more depth in this week’s Big News section of Shares . Clearly there are lessons to be learned about having private companies whose operations are so large and entwined...
Plenty of opportunities despite markets rallying
Thursday 11 Jan 2018The markets have started the New Year in a bullish manner with a repeat of the same trend seen in 2017: mid and small caps are outperforming larger companies. Many of you may assume high market levels make it harder to find decent investment ideas. In reality we’re still finding plenty of stocks...
Come and join the community of investors
Thursday 21 Dec 2017History tells us that smaller companies outperform larger ones and 2017’s UK stock market performance certainly backs that up. The FTSE AIM All-Share index has increased by approximately 20% in value this year, nearly twice that of the FTSE 250 and four times greater than the FTSE 100, according to...
Shareholder activism isn’t a ticket to short-term share price gain
Thursday 14 Dec 2017Activist investors are back on the agenda thanks to hedge fund Sachem Head Capital taking a small stake in Whitbread ( WTB ) and a high profile spat between TCI and London Stock Exchange ( LSE ) . While these events have been headline-grabbing news, it is worth bearing in mind that activist...
Cash pressures weigh on Harvester owner
Thursday 07 Dec 2017Pubs and bars operator Mitchells & Butlers ( MAB ) must have very patient investors given it has lagged its rivals for many years. It’s a great example of a business with decent scale in the UK but which seems stuck in the mud. Investors have lost 10.3% over the past five years by owning shares...
Don’t rule out a UK general election in 2018
Thursday 30 Nov 2017We’re approaching the point where investment experts give their predictions for big themes in the year ahead. We will publish our analysis of the key issues facing investors in 2018 in a fortnight’s time (14 Dec). Ahead of that article, it is worth touching on one issue which has the potential to...
When should you sell an investment?
Thursday 23 Nov 2017Investors share a common goal: finding an investment which subsequently goes up in value. Knowing when to sell that investment depends on a variety of factors. This could include hitting a valuation target, a company (assuming you’ve bought a stock) experiencing a change in circumstances or you...
Is it time to be brave and buy depressed UK-focused stocks?
Thursday 16 Nov 2017Some of the best valuation opportunities lie among UK domestic-focused stocks. Your challenge is to shift through the pack and find ones which stand a chance of re-rating in a market where sentiment remains poor towards companies doing business in the UK. Weighing on sentiment is renewed political...