Gamesinvestor1
25 Jan 2019
Selling the beer ITDYA - Sold the lot at 1105. Over 2 years it gave me 12% capital gain + 2 years divis at just over 2.3%, so all told 7+% a year isn’t too bad. However, I agree with you that pub-rooms business is very challenging. I’ve been into a few Fullers pubs in London over the last 2 years and some leave a lot to be desired - they are also very expensive compared to some others. One thing to note is that everyone is opening up rooms for rent in the pub business and competeing with the likes of Premier Inn. I suspect this is going to get harder, especially as Whitbread sold Costa to Coke – with all that money sloshing around they’ll be opening up a shed load more hotel rooms. I wouldn’t be surprised if we read ina few years that average room rate starts falling and profitability eases across the board. Wetherspoons (OK slightly different end of the market) have reported cost increases and warned of more to come. I suspect Tim Martin is hoping that he gets his Brexit so that his import costs fall significantly, especially as he is intent on buying everything from outside the EU and if the UK were to be free, those prices would be falling, unencumbered by EU tariffs. He ho I’m no longer into political debates, I’m bored witless by the whole shebang, however - I still like Fullers though and I’m not saying I won’t be back, but at below £10 maybe? Games
In_the_dark_yet_again
25 Jan 2019
Selling the beer LSE:FSTA @Gamesinvestor1, so what are we left with? Just the retail business, i.e. the pubs? That’s a tough business judging by how many pubs are closing all the time. I know, many aren’t just the typical local drinking hole, many have style and history but it’s still a tough business. Given this news which I’m not sure how to take it although happy with the share price jump back to my ‘expected’ level (don’t ask, some models are very flimsy!), I’m slightly surprised my Youngs hasn’t jumped so very tempted to bail right now and load up with more Youngs. Me, usually cautious (sometimes too cautious?) will probably wait until the dust settles at the risk of missing the window. Regards, ITDYA
Gamesinvestor1
25 Jan 2019
Selling the beer It doesn’t does it – but a 21% lift in the stock rings true for me - for now at least lol !! Games
richard599
25 Jan 2019
Selling the beer Tokyo Pride doesn’t have quite the same ring to it.
Gamesinvestor1
25 Jan 2019
Selling the beer Fullers have sold the brewing business lock stock and two smoking barrels. [link] Sale of the Fuller’s Beer Business for an enterprise value of £250 million, representing a multiple of 23.6x EBITDA (of £10.6 million for the 52 weeks ending 31 March 2018); Result – 23.6x EBITDA is an very handsome price. Games
Gamesinvestor1
22 Jan 2019
8.67% Jump Well the price mionitoring auction obviously had to cope with some big buyers to get a jump of 8.67% - obviously a tightly held pool and a realisation that it’s been cheap ish! for too long. Games
Gamesinvestor1
22 Jan 2019
Price Monitoring Extension [link] “â€"""The auction call period has been extended in this security by 5 minutes. Auction call extensions give London Stock Exchange electronic order book users a further opportunity to review the prices and sizes of orders entered in an individual security’s auction call before the execution occurs. A price monitoring extension is activated when the matching process would have otherwise resulted in an execution price that is a pre-determined percentage above or below the price of the most recent automated execution today."""" Games
Gamesinvestor1
17 Sep 2018
FD retires Moving to Germany. "Brewer and pub group Fuller, Smith & Turner said on Wednesday that James Douglas has decided to step down as finance director and will retire from the board in December. Douglas is moving to Germany, where his wife has been awarded a prestigious Humboldt Professorship. The pub chain said the search for a replacement is underway. Chairman Michael Turner said: “The board at Fuller’s would like to thank James for his contribution to Fuller’s success during the last 11 years. James has been a valued and supportive member of the board. He leaves with our very best wishes and we all wish him every success in his future endeavours in Germany.†Douglas said: “I have thoroughly enjoyed my time at Fuller’s - it is a truly great business with an exciting future. I wish Michael, Simon, my other board colleagues and everyone at Fuller’s continued success.†Liberum said the position is likely to attract “high quality†candidates and the news does not change its view of the company." Games - Nothing sinister here, he’s done 11 years
tomhawbuck
24 Aug 2018
Long period of static share price I’m not so sure - their debt goes up every year and I think a period of consolidation would not do them any harm. However, I was pleased that they bought Dark Star since it has given them a good range of interesting beers to add to their (rather dull imho) selection. Also their developments at King’s Cross, Euston and Liverpool Street stations seem clever and will attract thirsty commuters. I’m going to hold on, but not proposing to add.
TX2
23 Aug 2018
Long period of static share price I don’t think Fullers has a “debt issue†in any way.The debt is secured on a huge & probably undervalued freehold portfolio of pubs etc at a fairly modest LTV,the interest is covered many times by profits.In addition Fullers is reinvesting the bulk of net profits back in the business. The shares are more or less the same price as five years ago and at a PE of around 15 times earnings somewhat cheaper in PE terms.But probably I would class them as good long term value rather than a bargain!
gallon73
23 Aug 2018
Long period of static share price I recently went to a few Fullers pubs and found that the newer pubs are of similar quality to Young’s and they have moved into areas around or in railway terminals. Good plan. I agree about debt issue which reduces the margins and options to expand. Still the share price will eventually increase, once the growth stocks are shunned in next medium term sell off
tomhawbuck
23 Jul 2018
Long period of static share price I think they are a well-invested company - their pubs are all in good condition and offer good food. Apart from Oliver’s Island, they have not got a great track record in introducing new beers - but their new experimental brewery might help with that. I’m comfortable with them for now, but the continuously rising debt levels do give me pause and I would like to see the business run for profits and pay down debt for a while.
Gamesinvestor1
23 Jul 2018
Long period of static share price gallon, fair points – I wonder how the underlying property portfolio’s compare, and indeed if this is any longer an important measure given a change of use is required in the event of any asset realisations? Games
gallon73
23 Jul 2018
Long period of static share price It’s relatively good value compared to YNGA. It’s a quality if unspectacular stock. It’s just unloved at the moment and with slightly more debt than YNGA so in theory second best. Still doesn’t men it should be this low…, or maybe YNGA is too high?!
geoffreyallan73
23 Jul 2018
Long period of static share price It’s relatively good value compared to YNGA. It’s a quality if unspectacular stock. It’s just unloved at the moment and with slightly more debt than YNGA so in theory second best. Still doesn’t men it should be this low…, or maybe YNGA is too high?!
