Stock market crash: Is now the right time to buy crashing UK shares like Carnival, IAG, and TUI?

first_imgSimply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Matthew Dumigan | Sunday, 16th August, 2020 | More on: CCL IAG TUI Stock market crash: Is now the right time to buy crashing UK shares like Carnival, IAG, and TUI? Our 6 ‘Best Buys Now’ Shares Matthew Dumigan  owns shares of Carnival and International Consolidated Airlines Group SA. The Motley Fool UK has recommended Carnival. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997”center_img The stock market crash has taken its toll on many UK shares, particularly those in the travel industry. Companies such as Carnival (LSE: CCL), IAG (LSE: IAG), and TUI (LSE: TUI) have been among the hardest hit and it’s clear to see why. But could now be the right time to buy these stocks in order to realise bumper returns down the line?Crashing UK sharesWaiting for the right time to buy crashing UK shares could be likened to trying to catch a falling knife. Nobody knows when these companies’ share prices will bottom out, if at all, making them extremely risky investments.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Since the beginning of 2020, all three have watched their share prices plummet. Carnival comes out the worst off, with a 70% drop. IAG closely follows with a 69% fall, then TUI with 67%. Judging by those figures, you could be tempted to think that the only way forward is up.Nevertheless, fresh panic was caused at the end of last week by the UK’s announcement to add France, the Netherlands, and Malta, among other countries, to its quarantine list, prompting a further sell-off. It seems there are no limits as to how far their respective share prices can fall.Moreover, the prospect of bankruptcy now remains an ever-present threat looming over each of these companies. In order to stay afloat, many businesses in the travel industry will have no option but to tap into government support. Combine this with a gloomy economic forecast and the future outlook appears as bleak as can be. But is there any hope for these companies?An end in sightAs losses continue to mount for cruise ship operator Carnival, it’s becoming harder to envisage a happy ending. The industry giant was forced to cancel all operations until November and only a slow return to certain cruises will go ahead. A glimmer of hope comes from the high volume of rescheduled bookings, but, if successful, the road to recovery will be a long and arduous one.While IAG continues to bleed cash, the company doesn’t expect air travel demand to recover until 2023. With operations grinding to a halt, the company’s cash reserves have been tested. That said, IAG has a stronger liquidity position than most of its peers, which could be pivotal in ensuring survival. In my eyes, the recent proposed capital raise seems necessary, even at the cost of diluting current shareholders.With TUI on the brink of collapse, the company has been left to scramble for extra funding. With 2020 bookings down 81% and average selling prices 10% lower, the summer period has been utterly dismal. However, customers who have written off this year look set to return in big numbers for 2021. Bookings for next summer are up 145% and prices are higher too.The final verdictUltimately, for those companies able to weather the storm, it’s likely that their competitive position could be strengthened. This would be as a result of the damage caused to rivals. As such, for those prepared to hold for the long term, each of these shares could turn out to be a lucrative investment opportunity. That said, those looking for a safer play would do well to avoid these crashing UK shares and look elsewhere for buying opportunities. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Matthew Dumigan Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images last_img read more

Stock market crash: 2 must-own UK shares I’d buy for the new bull market

first_img Rupert Hargreaves | Monday, 19th October, 2020 | More on: ENT FLTR Simply click below to discover how you can take advantage of this. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images The stock market crash in March caught a lot of investors by surprise. Unfortunately, UK shares have struggled ever since. It’s easy to see why investor sentiment has remained depressed. The coronavirus crisis continues to rumble on, and the Brexit drama continues. However, I think investors should look past these short-term headwinds. They should focus on buying high-quality stocks for the long term instead. Today, I’m going to take a look at two of these companies, which I think are worth buying for the new bull market. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Stock market crash stocksEuropean gaming giant GVC Holdings (LSE: GVC) is one of a handful of companies that appear to have registered an increase in sales during the coronavirus pandemic.The company’s latest trading updates noted an uptick in activity on its platforms, and this is expected to translate into an increase in profit for the full year.Analysts have pencilled in a 23% increase in earnings this year. They’re also forecasting further growth of 40% in 2021. Despite this impressive growth potential, shares in the group are trading at a PEG ratio of just 0.5. That implies the stock offers a wide margin of safety at current levels. I’m also excited about GVC’s long-term prospects. Over the past decade, the company has gone from strength to strength, snapping up smaller peers across Europe. Thanks to this acquisition streak, net income has increased tenfold since 2014. I don’t see any reason why the company cannot continue to follow this course. As such, I think it’s one of the best UK shares to own after the stock market crash ahead of the economic recovery. US growthFlutter Entertainment (LSE: FLTR) is another highly successful UK gambling business. The company’s sales have grown at a compound annual rate of 25% since 2014. A series of acquisitions have helped complement organic growth. Now the company is focused on expanding into the United States. This could be a massive market for the business. The US online gambling market is still relatively underdeveloped compared to the UK market, but activity is snowballing. To capitalise on this growth, US casino giant Caesars recently offered £2.9bn to buy Flutter’s peer, William Hill.Caesars is after William Hill’s valuable online sports betting and casino technology and is willing to pay a pretty penny to gain access to this tech. The deal shows just how much money there is in the US market. Flutter is well-placed to capitalise on this growth. Unlike other UK shares in the sector, it already has a toehold in the US market. Therefore, I think it could be worth buying the stock as part of a diversified basket of UK shares after the recent stock market crash. It doesn’t look as if the group’s growth is going to slow anytime soon.center_img Our 6 ‘Best Buys Now’ Shares Stock market crash: 2 must-own UK shares I’d buy for the new bull market Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Flutter Entertainment. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” See all posts by Rupert Hargreaveslast_img read more

Here’s why these 3 FTSE 100 shares have soared in 2020

first_img Alan Oscroft | Friday, 27th November, 2020 | More on: FLTR KGF OCDO Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 2020 has been a devastating year for many FTSE 100 shares. But when I look round the list of winners, I see a surprising number doing well. Here I examine three to see why they’re climbing, and probe whether they’re still good buys.Winning FTSE 100 sharesAs a customer of Screwfix and B&Q, I’ve always liked Kingfisher (LSE: KGF). As an investment, I think of it as reasonable but nothing special. In recent years, earnings have been declining. And the company pared the dividend right back after Covid-19 arrived.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But so far in 2020, the Kingfisher share price is up 24%, while FTSE 100 shares overall are still sitting on a 16% loss. That’s a cracking outperformance (though it is the least impressive of the three I’m looking at today). It’s all down to a surge in DIY activity during our various lockdowns. I can hear the voices of spouses across the country: “No, you’re not allowed to go to the pub, so you can finally put those shelves up.”Forecasts suggest a 40% rise in earnings this year. There’s a fall-back expected next year, of 15%, which is the opposite direction to most FTSE 100 shares. But that would still leave the shares on an undemanding P/E of 12. So is this a one-off, or is Kingfisher back to long-term earnings growth? I need more time to tell.A lockdown blues winnerFlutter Entertainment (LSE: FLTR) shares have more that doubled the gains made by Kingfisher. It’s no real surprise that the gambling company, formed from the merger of Paddy Power and Betfair, has done well this year. (“The shelves? Yes, as soon as we’ve had the Kempton 2:15 results.“)In this case, we’re looking at a year-to-date gain of 51%. That’s more than three times the average of FTSE 100 shares this year. The Flutter share price actually crashed harder than the FTSE 100 in March. So anyone who managed to buy around the bottom is sitting on a 150% gain.Again we’re seeing a forecast EPS rise, of 45%, followed by a smaller decline (6%) next year. The 2021 forward P/E stands at 30. Is that still attractive for a FTSE 100 company that I feel has significant growth potential? I think it might be.Top FTSE 100 share priceThe biggest rise among these FTSE 100 shares comes from Ocado (LSE: OCDO). Is it an online groceries retailer, or is it a jam-tomorrow high-growth technology firm? At the moment, with a year-to-date gain of 70%, Ocado is valued as the latter. Oh, and the company is performing like the latter too, making no profits.With no profits, it’s hard to put any objective valuation on Ocado. And while that’s the case, I think a classic growth share boom-and-bust cycle could be emerging. It’s usually more prevalent with smaller companies, but it does happen among FTSE 100 shares too.The Ocado share price might have rocketed in 2020. But it has already retreated 25% from its peak price in September. And the vaccine boost enjoyed by many FTSE 100 shares is having the opposite effect on Ocado. I think Ocado is overpriced, and I wouldn’t buy. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK owns shares of Flutter Entertainment. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Here’s why these 3 FTSE 100 shares have soared in 2020 “This Stock Could Be Like Buying Amazon in 1997”center_img Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Alan Oscroft Enter Your Email Addresslast_img read more

I followed Warren Buffett’s approach in buying this share

first_img Christopher Ruane | Thursday, 25th February, 2021 | More on: ULVR Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Christopher Ruane I recently bought shares in a leading UK company. In making my decision, I was thinking through some of the principles that legendary stockpicker Warren Buffett espouses. I used them to help me pick the company in which I invested. Here I explain how.Think that you’re buying a slice of a companyIt’s easy to see shares just as a slip of paper with a monetary value. But Warren Buffett reckons it is more appropriate to think of them as a slice of the company. It may be a very small slice, of course, but it is still part of the company.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…So, instead of just looking at the share price chart, Buffett first asks whether he likes the company and thinks it is attractive to invest in. For example, does it have a strong business model, can it increase prices rather than be forced to cut them, and how large is its defensive moat?That was what I considered in making my choice to buy into Unilever (LSE: ULVR). With its global footprint, technology in everyday products used by billions of consumers, and pricing power, Unilever is the sort of company I think Buffett would like to own. Indeed, he tried to buy it several years ago. It’s the sort of company I decided I would be happy buying a slice of.Value brands for their long-term paybackBuffett has invested in a lot of companies with strong brands. One of his most famous investments is Coca Cola, a share he has said he would be happy to keep forever. But he is also a holder in American company Procter & Gamble. Like Unilever, it has a lot of personal care and cleaning brands.One reason Buffett is so attracted to brands is because they give a company pricing power. Instead of being a price taker, forced to accept whatever the market says the price of a commodity is, a brand allows a company to differentiate its product from competitors and so set its own price. A company like Unilever can see profits fall as input costs rise. So pricing power can be helpful.Another reason brands are attractive to investors like Buffett is because they pay back over the long term. Unilever’s decades of brand building efforts through advertising will continue to drive brand loyalty in future, even if they do not spend any more money on it.Warren Buffett likes to invest in the company, not the managementUnilever shares have fallen lately and currently offer a dividend yield of 3.9%. That is quite high for a FTSE 100 stalwart. I think that partly reflects investor nervousness that the pandemic sales boom will end, combined with nervousness about the company’s leadership quality.I think the leadership is good, but actually I wouldn’t worry too much even if it wasn’t. Buffett as a business leader himself of course likes high-quality leadership. But he doesn’t think it’s necessary. He says that rather than investing in a business purely because of its leadership, it makes sense to invest a business which has such a strong business model it could survive even with bad leadership. What clicks with me about Unilever is its strong market position and brand portfolio. Good leadership is a bonus. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img I followed Warren Buffett’s approach in buying this share christopherruane owns shares of Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: The Motley Fool Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997”last_img read more

I buy cheap shares like Warren Buffett buys burgers!

first_imgI buy cheap shares like Warren Buffett buys burgers! Our 6 ‘Best Buys Now’ Shares Cliff D’Arcy | Saturday, 27th February, 2021 | More on: GSK ULVR Billionaire Warren Buffett is regarded as one of the world’s greatest investors. His folksy wisdom has entertained shareholders in his giant conglomerate, Berkshire Hathaway, for decades. Buffett’s advice on a wide range of topics has entered into modern folklore. As a value investor, I’m a huge fan of Buffett. I often look to him for advice on buying cheap shares. Here are two things the Oracle of Omaha has taught me about buying into businesses.1. Stock up on burgers (and cheap shares) when prices fallIn 1997, Buffett asked, “If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef?” In other words, if one wants to buy shares, then one should be delighted when prices fall. Instead, many investors do the opposite: they sell at low prices and buy at high prices. Following Buffett’s advice, I’ve sworn off buying pricey US stocks. Instead, I’m trawling the FTSE 100 looking for ‘fallen angels’ (solid businesses with cheap shares).5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…For example, the share price of drug-maker GlaxoSmithKline (LSE: GSK) has declined for a year and more. On 24 January 2020, the GSK share price spiked to peak at 1,857p. On Friday, it closed at 1,191p, down 666p from this high. That’s a collapse of more than a third (35.9%) in 14 months. It’s also a 52-week low. Today, GSK shares trade on price-to-earnings ratio of 10.6 and an earnings yield of 9.4%. The 80p-a-share dividend equates to a dividend yield of 6.7% a year. But GSK plans to cut this dividend in 2021, as earnings might decline until 2024. Even so, I still see GSK as one of cheapest of cheap shares in the Footsie. Hence, I plan to buy more GSK shares for my family portfolio.2. Quality is worth paying for Another favourite Buffett quote is, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. It’s worth paying premium prices to buy into exceptional businesses. But what if you could buy into a brilliant business with cheap shares?For instance, Unilever (LSE: GSK) is one of the British businesses I most admire. The Anglo-Dutch giant is a global Goliath at selling fast-moving consumer goods. Look in your cupboards and you might find several Unilever brands. That’s because these are among the most trusted and widely bought products in the world. Incredibly, 2.5bn people use Unilever products each day. In 2019, Unilever’s revenues were €52bn (£45bn). Who wouldn’t want a piece of that action? Yet, Unilever stock is creeping into ‘cheap shares’ territory.At its 52-week high on 14 October last year, the Unilever share price peaked at £49.44. Today, they are on sale at £37.33. That’s a discount of £12.11 a share — almost a quarter (24.5%) — from the 2020 high. To me, this sell-off smells like an opportunity to buy into a world-class business at a reduced price. Today, ULVR trades on a price-to-earnings ratio of 20.2 and an earnings yield of 5.0%. The dividend yield of 4% exceeds that on offer by the wider FTSE 100. In historic terms, these are lowly ratings for this global leader’s shares. But Unilever had bumper sales boost due to Covid-19  restrictions. Alas, this surge is unlikely to be repeated in 2021–22. Difficult economic conditions could also pressure Unilever’s profits. Nevertheless, Unilever’s cheap shares remain high on my buy list for 2021. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. Image source: The Motley Fool Cliffdarcy owns shares of GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address See all posts by Cliff D’Arcy Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997”last_img read more

The Woodbois share price is soaring in 2021. Is it a penny share to buy now?

first_img Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. The Woodbois share price is soaring in 2021. Is it a penny share to buy now? Alan Oscroft | Thursday, 13th May, 2021 | More on: WBI Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address Image source: Getty Images. Simply click below to discover how you can take advantage of this.center_img See all posts by Alan Oscroft Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Get the full details on this £5 stock now – while your report is free. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Until Wednesday, I’d never heard of Woodbois Limited (LSE: WBI). But then I saw the results of the company’s latest fundraising, and examined the Woodbois share price. At around 6p, it’s a penny share for sure. But it’s climbed 87% so far in 2021 and it’s up from 3.3p a year ago.Woodbois is a forestry and timber company, operating in Africa. And on Tuesday, it had announced a plan to raise up to £5m via a share placing, to fund a number of different developments. At 6p per share, it was a little below the market price of around 7.5p on the day.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The company wants to extend its carbon sequestration business by buying and reforesting land in Gabon. In the same country, it also plans to expand its forestry concessions with a new 56,000 hectare acquisition. A production capacity expansion is on the cards too, for a recently purchased veneer line. And Woodbois aims to capitalise on waste products with a new blockboard facility. It all sounds impressive, but will it result in a lengthy bull run for the Woodbois share price?On Wednesday, Woodbois told us the placing had generated gross proceeds of £6m. Investors were really keen, it seems. And that’s often not the case with companies on penny share prices. Penny shares might look like obvious bargains, but companies tend not to start off that way. No, a penny share is usually a result of a previously highly-rated share hitting hard times. And the Woodbois share price is still way below its 50p levels of 2011.Is the Woodbois share price attractive now?So what about Woodbois as an investment now? The company has been through a major restructuring, after having accumulated hefty debt. In August 2020, Woodbois converted the bulk of that debt to equity, reducing it by 85%. On the upside, that gives the company an opportunity for a fresh start. But against that, a fresh start doesn’t help unless the problems that created the mess in the first place are actually rectified.The Woodbois share price might only be around 6p. But if we don’t see a fundamental turnaround on the back of the balance sheet reset, shareholders could still face the same possible worst outcome — a loss of 100%. So far, Woodbois has reported a gross profit for the 2020 full year of a modest $1.2m. But it’s not yet cash flow positive, though it does say it’s on track to achieve it.Profit, but no positive cashflowFor the first quarter of the current year, revenue grew by 44% over the previous quarter, to $4.6m. And at 6 April 2021, the company had a cash balance of $1.2m and working capital of $6.2m, with bank loans of $8.3m.It looks like what happens next could depend very much on the proposed projects to be funded by the new cash raise. If it comes off and we see a breakthrough to positive cashflow, I reckon the Woodbois share price could take a jump upwards. But the longer we see cash burn, the greater the chance of things heading south again. I don’t like risky penny shares and won’t be buying.last_img read more

Can these FTSE 100 growth stocks keep rising? Here’s what I think

first_img Enter Your Email Address See all posts by Manika Premsingh Manika Premsingh owns shares of Rightmove. The Motley Fool UK has recommended Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. FREE REPORT: Why this £5 stock could be set to surge Can these FTSE 100 growth stocks keep rising? Here’s what I think Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free.center_img Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Property stocks are among the biggest FTSE 100 gainers today. Taylor Wimpey, Barratt Developments, and Persimmon are all up around 3%. After some softening in their share prices over the past few weeks, I reckon this is a good opportunity for investors to buy as the property markets continue to look positive. Robust housing demandAccording to property e-marketplace Rightmove, the housing market continued to strengthen in May. The average price of property coming to market jumped by 1.8% to a record £333,564 compared to the month before. This is the most up-to-date house price index available right now. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…This house price increase is also reflected in FTSE 100 property companies demand, as per their recent updates. Barratt Developments recently reported robust forward sales numbers, which refer to sales of homes that are still under completion. In fact, it is fully forward sold for the current financial year. Similarly, Persimmon reported forward sales for the January-April months as 23% above the same time last year and even 11% higher than those in 2019. Taylor Wimpey too has seen resilient customer demand. My concerns for the property marketMy concern, however, is that the housing market has been supported by a unique conditions. These include significant government support, low interest rates, and possibly even higher savings among UK’s households. These are about to change. Government support, like the stamp duty relaxation, will be withdrawn later in 2021. With inflation on the increase, I think it is only a matter of time before banks start raising interest rates. This means that housing loans will become more expensive. Also, as we come out of lockdowns, I reckon household savings can come off. They rose to record levels last year as a proportion of income as lockdowns limited possible spending. High savings are instrumental in buying assets like houses or stocks. But with pent up demand for leisure activities from cinemas to holidays, consumers are expected to start spending more. In other words, there could be a reallocation of funds towards higher spending.What is next for these FTSE 100 growth stocks?This means that the housing market could soften in the near future. This in turn would have a bearing on FTSE 100 property stocks, raising the question – can their prices continue to rise?I think they can. There is no doubt that their share prices have risen over the past year. Barratt Developments, for instance, has seen an almost 50% increase. Persimmon has seen a 35% increase and Taylor Wimpey is up almost 14%. But in relative terms, they are still inexpensive, with price-to-earnings (P/E) ratios ranging between 15 and 28 times. Considering that their results will only improve going forward as well as some continued bullishness in investor sentiment, I think they are growth stocks with potential.Further, economic recovery is expected to be sharp. This should soften some of the blow from the withdrawal of the stamp duty waiver and rising interest rates. I would keep an eye out for house price developments to assess the situation over time, because they reflect underlying demand. When I next buy cyclical stocks, though, I will have them on my wish list.  Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Manika Premsingh | Friday, 28th May, 2021 last_img read more

3 best FTSE 100 income stocks for me to buy now

first_img Our 6 ‘Best Buys Now’ Shares When I buy income stocks, I base them on four criteria. These are a company’s financial health, its long-term prospects, its history as far as dividends go, and last, but not the least, its dividend yield. This helps me eliminate a lot of FTSE 100 income stocks that otherwise may look good. Even after this, though, I am still left with a number of high-quality stocks. So for now, I am applying an additional criterion associated with the current context. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Filtering dividend stocksIt is this. If we consider that the pandemic continues for longer than is expected, which companies will be best placed to pay me dividends?The answers very clearly are defensive stocks. These refer to stocks whose demand does not change dramatically with changing economic conditions. Among these, I find that utilities are the best bet. Full-year results across FTSE 100 utilities tell me that their results are largely stable. This is in contrast to many others whose businesses were battered by the coronavirus, and may even take a long time to recover. Among FTSE 100 utility stocks, at least three I can consider buying now are as follows.#1. National GridElectricity and gas provider National Grid’s latest results were a mixed bag, partly because of pandemic-related costs. However, it is still profitable and expects per share earnings to grow between 5% and 7% next year. This also bodes well for its dividends. I also like its recent forays into renewable energy, which indicate that it is pivoting towards the energy source of the future. Its current dividend yield is 5.3%.#2. SSEEnergy company SSE turned in a decent set of results recently even though its profits were impacted by a drag from Covid-19. This is positive, but what I like most is its commitment to dividend continuity. It has a 5.2% dividend yield and it has linked dividends to inflation, which promises a healthy return for investors.  It has also shown healthy share price growth over the past year, which makes it a growth stock as well. #3. United UtilitiesThe share price of water and wastewater services provider United Utilities was barely impacted by the market crash last year, which is a good sign. Its financials have taken a hit this year, to be sure. This is not because of a drop in demand however, but because of a new pricing plan and higher investments. It has a dividend yield of 4.2% and, based on its past performance and its outlook, I reckon it can continue to generate a decent income stream overtime as well. A point to note about FTSE 100 utilitiesI would, however, like to add that while I think these stocks are reliable to obtain long-term income, all stock market investing is subject to risks. So it is possible that for reasons that I cannot guess today, they could withdraw dividends in the future. But I think the risk of that happening is lower than for many other FTSE 100 stocks.  Enter Your Email Address Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. 5 Stocks For Trying To Build Wealth After 50 Simply click below to discover how you can take advantage of this. 3 best FTSE 100 income stocks for me to buy now Manika Premsingh | Sunday, 30th May, 2021 center_img Click here to claim your free copy of this special investing report now! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. See all posts by Manika Premsingh I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. last_img read more

Does a booming market make this FTSE 250 penny stock a buy for me?

first_img Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. FREE REPORT: Why this £5 stock could be set to surge Get the full details on this £5 stock now – while your report is free. Manika Premsingh | Tuesday, 8th June, 2021 | More on: UKCM center_img John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Manika Premsingh owns shares of Ocado Group. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Ocado Group and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Does a booming market make this FTSE 250 penny stock a buy for me? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. The property sector keeps booming. The latest confirmation comes from the Halifax house price index, which showed 9.5% annual growth in May. It is at the highest level in almost seven years. To assess how this is playing out among publicly listed real estate companies, I looked at a FTSE 250 property-related penny stock, UK Commercial Property Real Estate Investment Trust (LSE: UKCM).  Flying highIt recently touched 52-week highs, which is one indication that the performance has been positively impacted by the property market boom. A bunch of short-term developments have come together to prop up property prices. These include the June deadline for the stamp-duty holiday, an increase in UK households’ savings during the lockdown and a traditionally busy summer period. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But Halifax expects the real estate boom to continue. A booming post-pandemic economy and a change in preferences towards more spacious properties are the reasons given for this. This can bode well for the penny stock in question. The next question is whether its individual profile also supports the trend in real estate. Fundamentals for the penny stockI last wrote about UK Commercial Property Real Estate Investment Trust (REIT) in late April. At that time, it looked positive from a strategic point of view, with customers in the e-commerce sector like Ocado and Amazon. Its rent collection was also at a healthy 84% for the first quarter of 2020. A few days later, it updated its financials, which were a mixed bag. Rent collection for 2020 was 83%, marginally below the number for the first quarter as lockdowns continued. Its performance was also diminished from the year before. Its earnings per share (EPS) fell based on alternative performance measures, which indicate how the company believes it has performed. Going by statutory measures, it made a loss. So it follows that there was a loss per share in 2020. It is also hard to ignore that its performance in terms of net income was sliding downwards even before the pandemic. Also, there is a possibility that some permanent shift towards working from home has reduced the potential for gains from commercial properties. Future looks positiveBut there are reasons to be positive too. With the lockdown now lifted, I am optimistic about UK Commercial Property REIT’s performance over the rest of 2021. Even if the commercial property market stays weak, it can be protected by the fact that 58% of its portfolio is in the industrial sector. The company has already started seeing signs of revival, according to its latest factsheet. In particular, it continues to be positive about retail warehousing. I think this can provide long-term returns for the business. My takeaway for the FTSE 250 stockThis is still a penny stock, still trading below pre-pandemic levels. I think that just going by the fact that its share price is still weak when many others have risen substantially, it could become attractive to investors over time. I would certainly consider it as a long-term purchase for my own portfolio.  Image source: Getty Images See all posts by Manika Premsinghlast_img read more

The Go-Ahead share price keeps falling! Should I buy this UK share today?

first_img The Go-Ahead Group (LSE: GOG) share price has been locked in a downslope in recent weeks. The UK transport share is still up 20% over the past year and a long way above November’s near-two-decade lows around 580p. But it’s falling again as rising Covid-19 infection rates in Britain have relit concerns over whether it can keep its buses and trains working.Not even the release of bright financials on Thursday helped the Go-Ahead share price spring out of this downtrend. It rose fractionally to close the session a shade below £12.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Passenger numbers climbIn a trading update for the financial year to July 3 Go-Ahead said it has enjoyed “robust trading performance” across all of its divisions. Passenger numbers at its Regional Bus division are at their highest since the Covid-19 outbreak in early 2020. They are currently running at between 65% and 70% of pre-pandemic levels.Go-Ahead said that the high number of people using its regional bus services since Covid-19 restrictions began easing reflects “the pent-up demand for leisure, retail and general social contact”. It added that traveller volumes are in excess of 80% of usual levels in some regions.Strength elsewhereIn other news, Go-Ahead increased its full-year expectations for the London & International bus division. The unit will benefit from a one-off payment linked to Quality Incentive Contract agreements in London, the company said, while lower-than-forecast levels of sickness and expectations-beating staff retention levels have also boosted performance. Elsewhere, its Singaporean business will benefit from Covid-19-related government receipts.Elsewhere, Go-Ahead said discussions regarding its Southeastern and GTR rail franchises have begun with the Department for Transport. News on contracts that are due to end this year is expected in the autumn. Go-Ahead said that it still predicts its Rail division will break even during this outgoing year.The transport operator added that its balance sheet is strong and that cash generation is ahead of previous forecasts. It now expects leverage “to be towards the bottom end of the 1.5 to 2.5 times target range”.Time to buy Go-Ahead?Go-Ahead commented that “our priority over the coming months is helping passengers return to our services and welcoming new passengers who may be looking for a greener, value-for-money travel choice”. It added that the board continues to work towards paying a dividend “at an appropriate level” for financial 2021.There’s clearly a lot of uncertainty facing Go-Ahead in the near term and beyond. Resurgent coronavirus cases in the UK are one problem, while the future for its rail franchises is a more enduring thorn in the side. The small-cap provides essential services for many people across the world, though. And this could still deliver big returns in the years ahead. But I won’t be buying Go-Ahead for my investment portfolio as the risks are far too high for my liking. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images The Go-Ahead share price keeps falling! Should I buy this UK share today? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Sharescenter_img Royston Wild | Friday, 11th June, 2021 | More on: GOG FREE REPORT: Why this £5 stock could be set to surge See all posts by Royston Wild Get the full details on this £5 stock now – while your report is free. Simply click below to discover how you can take advantage of this. Enter Your Email Addresslast_img read more