The Investment Column: Give Experian credit for its promise as a long-term holding - vibrating ring
by:KISSTOY
2019-11-15
Our point of view: the price of buying shares is 619. 5p (+19. 5p)
Credit expert Experian released his first set of results since leaving Gus yesterday, meeting analysts' expectations and driving its share price up more than three percentage points.
It will be one of the new members of the FTSE 100 index next month, but it is owned by a company known for its retail businesses (
Argos and home base)
This is an industry that few British investors know about.
The group is known for its credit services-
Organize credit score data for financial institutions and resell them when they want to decide whether to make a loan to an individual.
This part of the company's business accounts for about half of its revenue and, given the high barriers to entry in its core US and UK markets, provides a stable pillar for the group.
Experian has more than 30 years of history in the market and has become a trusted brand for financial institutions.
The company's reputation for credit services has also helped the development of its two other companies --
Decision Analysis and marketing solutions that actually provide credit consulting and database management solutions to corporate customers.
The last stop of the business is its interactive department, which includes websites such as PriceGrabber.
Com and LowerMyBills.
And provide a lot of organic growth for the business.
As a diversified company with strong management capabilities
It shows its intention to pursue acquisitions and organic growth, but it also shows that it has enough discipline to pay less --
Experian is a solid, relatively lowrisk stock.
For the sake of long-term development, I will take it away.
UniqOur Point of View: AvoidShare Price: 194 p (-6p)
The news from Uniq over the past few weeks is the most encouraging in years.
This month, the convenience food maker raised £ 280 from disposable food.
The biggest share came from selling the French spread business to Dairy Crest, raising far more money than most City analysts expected.
Uniq provides ready-to-eat food for most supermarket chains in Europe, and its balance sheet has changed due to transactions.
The company's pension fund deficit has increased from £ 85 to £ 22, while its debt burden has disappeared and can now have a net cash balance of over £ 70.
There was more good news for shareholders yesterday.
The company announced that the loss of continued operations in the first half of the year fell to £ 8. 4m from £12. 2m.
Revenue grew by 2 percentage points to £ 35.
To highlight the confidence of management in the recovery of Uniq, the company announced a medium-term dividend of 2. 5p a share.
The only real disappointment is the performance of Uniq's British dessert business.
It caused a loss of £ 6 in operations. 8m.
Jeff Eaton, chief executive of the company, said he had launched a positive transformation plan that is expected to break even next year.
It is clear that Uniq is now firmly established.
However, a full recovery is far from guaranteed.
There is still a lot of hard work ahead of this food manufacturer.
Analysts predict that the company will break even by December 2007 and is expected to make modest profits by the year ended.
Given Uniq's market valuation of £ 220, these stocks are probably the best to avoid at the current level.
Our View: The price of holding shares: 343 p (+10. 75p)
SSL International, the manufacturer of Durex condoms and Scholls Foot Care products, is looking for acquisition opportunities in Europe and Asia.
The latter seems to be a particularly attractive area for SSL investment as it has 18-to 30-year-
People of this age are most likely to buy condoms.
The company is in full control of its joint venture in China.
Further trading in the country is a clear possibility.
India is also on the list of popular SSL acquisitions.
With India booming, the company is increasingly using its Durex brand in the country.
Still, it seems that Europe will remain a key market for some time to come.
In the last count, SSL sales accounted for 74 of the mainland's sales.
The group's most popular sex toys are the older generation in Europe.
Thanks to this portfolio, SSL is able to roll out 9.
Two percentage points in the first half of the preliminaries
Yesterday's tax profit reached 18. 9m.
It turns out that its new ringing-sexual assistance-is very popular, especially in Spain, where SSL sales have reached an astonishing 3 million since the end of last year.
The group hopes to boost its sales in the UK by television advertising that will start broadcasting before the end of the year.
Although SSL shares have a forward earnings of up to 17 times, the prospect of Asian expansion and the possibility of acquiring the company make them worth holding now.