Equity Bank Limited (EBL.ug) 2020 Annual Report

first_imgEquity Bank Limited (EBL.ug) listed on the Uganda Securities Exchange under the Banking sector has released it’s 2020 annual report.For more information about Equity Bank Limited reports, abridged reports, interim earnings results and earnings presentations visit the Equity Bank Limited company page on AfricanFinancials.Equity Bank Limited Annual Report DocumentCompany ProfileEquity Bank Limited is a financial conglomerate offering banking products and solutions to individuals and small-to-medium enterprises in Uganda through its subsidiary company, Equity Bank Uganda Ltd (EBUL). Its product offering ranges from savings and current accounts and fixed deposit accounts to social institutional accounts, credit products, treasury, trade finance and bank guarantee services. EBUL offers solutions for Internet banking, money transfers, merchant acquiring, point of sale and mobile banking services. Equity Bank Uganda Limited was formerly known as Uganda Microfinance Limited and changed its name to Equity Bank Uganda Ltd in 2008 when the microfinance institution was purchased by Equity Bank Limited. The financial conglomerate operates in six countries in the African Great Lakes Region, including subsidiary banks in Uganda, Kenya, South Sudan, Rwanda and Tanzania. Equity Bank Limited is listed on the Uganda Securities Exchangelast_img read more

2 defensive stocks that I’d buy to protect myself during the 2020 stock market crash

first_img2 defensive stocks that I’d buy to protect myself during the 2020 stock market crash Jonathan Smith | Monday, 23rd March, 2020 | More on: BATS TSCO Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! We are all well aware of the sell-off that has been happening in equity markets around the world. Because of it, the stocks I hold have taken a hit. This is likely the case for many investors, given that the cause of this crash (the coronavirus) affects most sectors. The sectors hardest hit are those with high exposure to the public’s wants as opposed to needs. Examples include travel firms and retailers. On the other side of the coin, defensive stocks, representing needs, have taken less of an impact from this sell-off.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…A defensive stock is categorized as such because its revenue and profits are less sensitive to the well-being of the overall economy. This is usually because the goods and services such firms offer have inelastic demand. Goods and services like these are things people like you and me need to function on a day-to-day basis.Buying such stocks can be used to add protection during a market crash. In theory, they should have sustain less of a negative impact than other sectors.Puffing awayOne of the most inelastic products on shelves is cigarettes and other nicotine goods. The addictive nature of these products mean that most consumers will continue to buy them irrespective of the amount of income they have, or whether it is good for their health.For investors, this means that the impact on British American Tobacco (LSE: BAT) during this sell-off should be limited. The share price for the firm has taken a tumble, but it is still higher than levels we saw in 2019. This cannot be said for many other FTSE 100 companies!In the latest earnings report delivered about a month ago, the key financials for the business were steady. Revenue was up 5.7%, though profit was down 3.2%. Financial ratios were similar in either beating or missing expectations within a small margin.For a large, established business, this is a good set of results. Due to the size (and inelastic demand) of the firm and the products made, it will be rare to see double-digit growth year on year. But the fact that results are steady confirms to me that it is a defensive stock which will hum away slowly during good times and bad. This makes it attractive currently.Anything on the shelf?Tesco (LSE: TSCO) is another good example of a defensive stock. This appeals to me because the goods offered by supermarkets are going to be in demand all the time. I recently wrote about J Sainsbury being attractive near 20-year share price lows. Tesco is another option, being one of the big four supermarkets in the UK. Despite the FTSE 100 falling over 30% since the start of the year, the Tesco share price has only fallen 15%. This highlights its resilience and how investors believe the impact of the virus will not unduly trouble the firm. Added to this is the fact that the dividend yield is around 3%. Not a huge number I admit – but importantly the dividend cover is over 2. This makes it likely that the dividend will continue to be paid, in my opinion. This at a time when I imagine a lot of firms will cut their dividends, reducing dividend yield going forward in other sectors. With the main boxes ticked, Tesco is on my watchlist to buy. 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. “This Stock Could Be Like Buying Amazon in 1997” 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.center_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address See all posts by Jonathan Smith Jonathan Smith does not hold shares in any firm mentioned. The Motley Fool UK has recommended Tesco. 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. Simply click below to discover how you can take advantage of this. Image source: Getty Images. last_img read more

Forget the stock market crash. Knowing this could help you retire rich

first_img Paul Summers 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares 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. Forget the stock market crash. Knowing this could help you retire rich 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. 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.center_img Enter Your Email Address Saying that a single concept can help you retire rich might sound extreme, but bear with me.Today I’m going to talk about the one thing all new investors must learn and all experienced investors must remember. The fact that we’ve just experienced the worst quarter for stock markets since 1987 makes it even more relevant.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 most important thingForget all the fancy money-making strategies you’ve heard. To really increase your wealth, it’s more important to understand the concept of ‘compound growth’.We experience compounding in everyday life, usually without even recognising it.Suppose you want to get fit and decide to dedicate 10 minutes a day to exercising. Initially, progress is slow. Over time, however, workouts become easier and your body can do more.The reason for this is simple: every bout of exercise builds on those previously completed. Compounding can work against us too. Allowing ourselves an extra portion of something calorific at dinner might not feel wrong at the time. The result of doing so many times over many evenings, however, eventually shows on our waistline. The little things we regularly do add up.So, it can make me rich?Yes. Compounding is the not-so-secret sauce that can also make you wealthy. Imagine investing £20 in the stock market every month (or £240 per year) for the next 30 years. Over this period, markets rise in value and you re-invest any dividends you receive.Although the actual rate of return will vary from year to year, let’s say your portfolio returns 10% per annum. So, after one year, your money increases in value by 10%. In the second year, the money you had after the first year increases by 10% and so on. After 30 years, you’d have nearly £40,000. It’s grown by so much because you’ve earned interest on interest every year. Your money has compounded. Remember, this is the hypothetical result of investing just £20 per month. Put away £50 a month and you’ll have almost £99,000 based on my figures. £100 a month will give you over £197,000. It’s not magic, it’s simple maths. The only caveat is that there’s no guarantee the stock market will return that 10% average per year. It could be lower or higher, depending on what you choose to invest in and how those investments perform. Dedication requiredCompounding can make you rich, but it still requires two things from you: commitment and patience.Just as practicing the violin once every year won’t lead to any meaningful gains in terms of ability, saving ‘when you feel like it’ is unlikely to substantially increase your wealth.This is why setting up a direct debit to take even a small amount of money from your bank account to your ISA every month without fail is crucial. By automating your savings, you take out the need to be motivated to save.Second, learning to delay gratification is vital. Warren Buffett’s wealth has increased massively in later life because he recognised that results aren’t immediate. He continued to invest, through good times and bad. Which brings me back to the start. Having the courage to invest through market wobbles is desirable since it allows you to buy more when prices are depressed. The more stock you accumulate at lower prices, the greater the eventual upside will be.Forget the market crash. Remember the power of compound growth. Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Paul Summers | Sunday, 26th April, 2020 See all posts by Paul Summerslast_img read more

The Boohoo share price has bounced back. Is it too late to bag a bargain?

first_img Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended NMC Health. The Motley Fool UK has recommended boohoo group. 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 See all posts by Alan Oscroft 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” Image source: Getty Images Alan Oscroft | Thursday, 28th May, 2020 | More on: BOO 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.center_img The Boohoo share price has bounced back. Is it too late to bag a bargain? Boohoo (LSE: BOO) has been one of the winners in the FTSE 100 crash. As the Covid-19 lockdown has closed all UK clothing stores, online sellers have been enjoying a boost in demand. I was surprised then, to see the Boohoo share price fall this week.From a high on Tuesday of 380p to the end of business on Wednesday, Boohoo shares lost 12% of their value. Things have reversed on Thursday, and the price has bounced back with a 17% gain, at the time of writing. But what’s been happening, and is this price uncertainty providing us with a buying opportunity?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…Boohoo share priceWe’re too late to take advantage of this week’s dip. As it stands, the Boohoo share price is now up 30%, so far, in 2020. But that alone doesn’t mean we should turn away.The price fall came as a result of a short-selling attack on the company. Fortunately, it’s not from Muddy Waters, as an attack from that renowned company can be enough to crush a stock. Muddy Waters attacked NMC Health earlier in the year, accusing it of balance sheet manipulation and inflated asset purchases, among other misdeeds. The resulting exposure of the firm’s finances, and those of founder BR Shetty, have led to a share price collapse and the cancellation of NMC’s London listing. And it’s brought about the financial downfall of Shetty too.Cashflow questionsIn the Boohoo case, the attacker is the UK’s Shadowfall, which has accused Boohoo of presenting a “misleading impression” of its cashflow. Shadowfall alleges an overstatement of £32.2m. But it certainly hasn’t had the same effect on the Boohoo share price as the Muddy Waters attack on NMC.One of Shadowfall’s claims is that Boohoo treated subsidiary PrettyLittleThing as a wholly-owned investment when it actually owned 66%. Boohoo’s rapid response, on Thursday, was to announce the acquisition of the remaining 34%. There’s an initial consideration of £269.8m, potentially rising to £323.8m. Boohoo said: “The acquisition is expected to be significantly earnings enhancing on a fully diluted basis with immediate effect.” That announcement was just what the Boohoo share price needed.Prior to that, Boohoo had issued a note of its own saying it “strongly refutes the allegations made in the research note.” The company went on to point out that its annual results contain “clear definitions, alongside a full reconciliation down to net cash flow for the financial year.” It also explained it had an option to acquire the remaining 34% minority shareholding in PrettyLittleThing.Buy or sell?What does all this mean for shareholders, and is the Boohoo share price attractive? I think it’s unlikely there’ll be much substance coming from this short selling note. I see Boohoo shrugging it off and carrying on with business as usual.I think it’s a good business too, and I expect profitable expansion in the years to come. The only thing I don’t like is the Boohoo share price valuation. On a forward P/E for the current year of a massive 60, I see no safety margin there at all.I wish you well if you’re a growth share investor, but it’s still too risky for me. 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. 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. Simply click below to discover how you can take advantage of this.last_img read more

Fasten your seat belt! Why I think the Aston Martin share price could go downhill from here

first_img Ellen Leung | Thursday, 4th June, 2020 | More on: AML Simply click below to discover how you can take advantage of this. It has been a roller-coaster ride for the Aston Martin Lagonda (LSE: AML) share price. The company has been publicly listed since October 2018 – and the share price has been going down since then. So this is not purely a coronavirus-impacted collapse. And here is why I think its share price could continue to go downhill from here.The Aston Martin share price could plummet without proven leadershipThe departure of CEO Andy Palmer indicates the long-time failing leadership within the company, in my opinion. Even with the incoming CEO Tobias Moers from Mercedes, I don’t see a quick turnaround for a company that is slowly losing its brand appeal. Major shareholder Investindustrial Advisors Ltd also cut its stake in the company by nearly 5% to 14.99%.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…On top of the Covid-19 crisis, the company was already suffering from the effect of the US-China trade war, with demand slumping from wealthy Chinese customers in 2019. The global automotive industry has undergone a tough year.Murky earnings outlookAston Martin last month posted a big first-quarter loss after sales dropped by almost a third due to the impact of the coronavirus outbreak. The company has been experiencing a negative net profit in the last two years. With the ongoing impact of coronavirus and no end in sight, I would not bet on a near-term revenue increase, let alone earnings.Additionally, a healthy balance sheet is more important than ever in this uncertain time. Aston Martin’s debt level has increased by double digits year-over-year, which is very concerning. The cash-strapped company had to raise £536m to increase liquidity to fund its short-term working capital needs. The funding comes from Canadian billionaire Lawrence Stroll, who took a 25% stake in the company. Meanwhile, it is also raising proceeds of £317 million by issuing new shares. This will dilute existing shareholder value, which isn’t exactly great.My verdictThe stock might look very cheap on the surface to some. But when looking closely at its limited revenue growth with slumping global sales, especially in China, I don’t see the company having a very bright future ahead.It is clear that Aston Martin had problems before the Covid-19 crisis, and that’s why its share price was hit so hard amid the pandemic-related sell-off. I think it is fair to say car manufacturers like Aston Martin will take a lot longer to recover, if it recovers at all. Therefore, I will stay away from the stock. 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! Image source: Getty Images Ellen Leung has no position in any of the shares mentioned in this article. 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. 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 “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Fasten your seat belt! Why I think the Aston Martin share price could go downhill from here Enter Your Email Address 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. See all posts by Ellen Leunglast_img read more

A 7%-yielding FTSE 100 dividend stock I’m convinced will help me retire in luxury

first_img Rupert Hargreaves owns shares in British American Tobacco. 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. 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. 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. 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. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Sharescenter_img A 7%-yielding FTSE 100 dividend stock I’m convinced will help me retire in luxury 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. The FTSE 100 has recovered strongly from its stock market crash at the beginning of the year. However, despite this performance, some of the index’s constituents continue to offer value.There’s one company, in particular, with a dividend yield of more than 7% that may be worth buying for your portfolio today. 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…FTSE 100 dividends on offer British American Tobacco (LSE: BATS) is a leading FTSE 100 income stock. It’s also one of the few blue-chip companies that has stood by its dividend in the coronavirus crisis. Its latest trading update shows that, despite the global pandemic, sales have held firm. Nonetheless, management also warned the near-term outlook for the business is highly uncertain. Indeed, the company has already had to revise growth guidance lower once already this year. It’s now expecting full-year revenue growth of 1-3% and profit growth in the mid-single-digit range.That’s disappointing, but it’s significantly better than most of the FTSE 100 firm’s blue-chip peers, which are forecasting a sales decline. Moreover, the group has a strong balance sheet and an established position in the global tobacco market. That suggests it could be in an excellent place to recover when growth returns to the worldwide economy. The FTSE 100 dividend champion may also be able to take market share from weaker competitors who haven’t been so lucky. British American has a history of doing just that. Over the past six years, it has reported earnings growth of around 9% per annum. Organic expansion, market share growth, and acquisitions have all contributed to this performance. As the company’s bottom line has expanded, it’s also been able to grow its dividend payout. The per-share dividend has more than doubled over the past decade to just over 200p today. Only a handful of other FTSE 100 businesses have produced the same rate of dividend growth over the same time frame. So, while British American may face more uncertainty in the near term, over the long run, the company should prosper. That suggests now might be a good time to snap up the shares while they trade at a bargain valuation. Bargain stockDespite the coronavirus crisis, and the impact it’ll have on the FTSE 100’s company’s growth this year, British American is still planning to pay a dividend. After recent declines, the stock supports a dividend yield of around 7.4%. That’s nearly double the FTSE 100 average. On top of this market-beating dividend yield, the shares look cheap. On average, City analysts believe the stock is worth 3,800p. That’s a potential increase of 30% from current levels. The most optimistic forecasts suggest the stock could be worth as much as 4,800p, a rise of 64% from current levels. As such, it appears as if British American has the potential to produce high total returns for investors in the coming years. It offers a combination of income and capital growth few other FTSE 100 companies may be able to provide in the current economic environment. Enter Your Email Address Rupert Hargreaves | Friday, 10th July, 2020 | More on: BATS See all posts by Rupert Hargreaveslast_img read more

Could the Sainsbury’s share price help you get rich and retire early?

first_img 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. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! The Sainsbury‘s (LSE: SBRY) share price has outperformed the market over the past 12 months. During this period, shares in the retailer have increased by 18%.Following this performance, some investors might be interested in the company. Considering its defensive nature and position in the UK grocery market, the Sainsbury’s share price might be able to help you get rich and retire early. 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…Time to buy the Sainsbury’s share price?Over the past five years, Sainsbury’s has faced a challenging operating environment. The company has struggled to compete with discount retailers such as Lidl and Aldi. It also lacks the footprint of its larger peer Tesco.Sainsbury’s one advantage is its ownership of Argos, which has helped the business stand out in recent years. Unfortunately, Argos alone has not been able to offset the decline in sales from customers leaving to find bargains elsewhere. Still, despite these headwinds, the company’s profits and revenues have held up relatively well over the past six years. Sales have grown at a compound annual rate of 4% since 2015.And this year the company is set to report a net profit of £445m according to the City. That’s only slightly below 2016’s figure of £471m. These numbers suggest that the stock is trading at a forward price-to-earnings (P/E) multiple of around 11. The sector average is 14, implying that the Sainsbury’s share price offers a margin of safety at current levels. The company’s profitability has enabled it to maintain its dividend to investors. The Sainsbury’s share price currently supports a dividend yield of 5.6%, compared to the FTSE 100 average of 4.3%. Industry comparisonThese figures show Sainsbury’s has coped well in the harsh retail environment of the past five years. That being said, the group’s numbers are relatively disappointing compared to its faster-growing peers.For example, Tesco’s operating profit has more than doubled over the past four years. From £1bn in 2016, it hit £2.5bn in 2020. The group has been able to achieve better dividend growth as a result. Tesco’s payout to investors is up 200% in the past three years. Similarly, Morrison‘s has seen its net income rise around 50% since 2016. The bottom line Despite the strengths of the underlying business, the Sainsbury’s share price may not be the best bet in the UK supermarket sector. The company has struggled to grow over the past five years, and this shows in the firm’s bottom line and dividend growth. Its peers have achieved a much better growth rate during this time. However, from an income perspective, the stock does offer one of the best dividend yields in the sector. It is also the cheapest in the sector. This may mean that if the group can return to growth, an improvement in investor sentiment may lead to a higher share price. Investors would be paid to wait for the recovery to take shape. So, as part of a diversified portfolio, the Sainsbury’s share price may offer the potential for high total returns. As a standalone investment, however, returns could be disappointing.  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. Enter Your Email Address Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Tesco. 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.center_img “This Stock Could Be Like Buying Amazon in 1997” Rupert Hargreaves | Wednesday, 12th August, 2020 | More on: SBRY Simply click below to discover how you can take advantage of this. Image source: Getty Images. See all posts by Rupert Hargreaves Could the Sainsbury’s share price help you get rich and retire early?last_img read more

What the Wales firebreak lockdown could mean for the rest of the UK

first_img Image source: Getty Images Sean LaPointe | Friday, 23rd October, 2020 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! Wales will officially go into a two-week ‘firebreak’ lockdown at 6pm on Friday 23 October. The goal is to contain recent spikes in coronavirus cases in the country and prevent the NHS from becoming overwhelmed over the coming weeks.Here’s what the Wales firebreak lockdown could mean for the rest of the UK.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… What’s a firebreak lockdown? A firebreak lockdown, also known as a circuit breaker lockdown, is a mini lockdown usually lasting two weeks. It’s designed to deliver a short, sharp shock to the chain of coronavirus virus transmissions.The main idea is to slow… What the Wales firebreak lockdown could mean for the rest of the UK “This Stock Could Be Like Buying Amazon in 1997” Wales will officially go into a two-week ‘firebreak’ lockdown at 6pm on Friday 23 October. The goal is to contain recent spikes in coronavirus cases in the country and prevent the NHS from becoming overwhelmed over the coming weeks.Here’s what the Wales firebreak lockdown could mean for the rest of the UK.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…What’s a firebreak lockdown?A firebreak lockdown, also known as a circuit breaker lockdown, is a mini lockdown usually lasting two weeks. It’s designed to deliver a short, sharp shock to the chain of coronavirus virus transmissions.The main idea is to slow down transmissions by limiting social contact, while also limiting damage to the economy.  Under the Wales firebreak lockdown:Everyone will be required to stay and work at home with the exception of critical workers and those in jobs where working from home is not possible.There is a ban on different households mixing (two households can, however, form a support bubble).All non-essential shops, hospitality businesses (such as cafes, restaurants and pubs – unless they provide delivery and take away services), leisure centres and tourism facilities will be closed.Community centres, libraries and places of worship will also shut.How are other parts of the UK dealing with the coronavirus?Northern Ireland is already under its own firebreak lockdown, which commenced on 16 October. The lockdown is intended to last four weeks.People have been told to avoid social contact with those outside their household or support bubble, stay and work at home where possible and limit travel. Like Wales, bars, pubs, and other non-essential shops and service centres have been closed.England, on the other hand, is currently under a three-tier coronavirus restrictions system. Different parts of the country have been placed into different alert levels (medium, high and very high), with each having its own set of restrictions.  In Scotland, the local government has announced that it’s planning to implement a new five-tier lockdown system on Monday 2 November.  Could we see firebreak lockdowns in other parts of the UK?No one knows if any of the approaches in the UK will be effective in slowing the rate of infection.The reality is that infection rates are still rising. In England, we are seeing more regions moving to the very high alert level (tier 3). But it’s too early to judge or dismiss the tiered system given that it has only been in action for just over a week.Still, a firebreak lockdown like the one in Wales or Northern Ireland might not be the worst idea. Countries like New Zealand and Singapore have already tried this approach with some success.The majority of the firebreak lockdown restrictions are aimed at limiting non-essential mixing and socialising in indoor settings. We already know that most coronavirus transmissions are because of close contact with infected persons, the risk of which increases in indoor settings. So it makes sense to have restrictions targeting indoor environments.A firebreak might be just what other parts of the UK need to stop coronavirus in its tracks, or at least interrupt the flow of transmissions and give governments time to come up with better long-term plans.Speculation is already mounting that the implementation of a firebreak lockdown in England is imminent. Nothing is certain, however, so we’ll just have to wait and see.In Scotland, it’s less likely that there will be a firebreak lockdown given that the government is planning an entirely different approach to tackling rising cases.How can you prepare for a firebreak lockdown? Worried about how a potential firebreak lockdown (or even a full lockdown) might affect your personal finances? Here are a few actions you can take to prepare.Set up an emergency fundMost people do not have an emergency fund. So when something unexpected like the coronavirus outbreak happens, most are caught unprepared and financially vulnerable.You can avoid this by cutting down spending and putting away as much as you can to build an emergency fund to cover you should things get worse.Create or find an extra source of incomeMost of us depend on a single source of income either from a job or a business. Unfortunately, because of coronavirus, we are seeing some businesses shutting down for weeks and many people losing their jobs.During these times of uncertainty, it’s more than useful to have an extra source of income. Start by checking out our list of side hustles you can do from home.Spruce up your creditNow might be a great time to spruce up your credit. For example, if you’ve got a credit card that you’re currently paying off, consider transferring the debt to a 0% balance transfer card to give yourself more time to pay it off without accruing more interest. The Motley Fool receives compensation from some advertisers who provide products and services that may be covered by our editorial team. It’s one way we make money. But know that our editorial integrity and transparency matters most and our ratings aren’t influenced by compensation. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Mastercard. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, and Tesco.last_img read more

3 UK shares I’d avoid because hedge funds expect them to fall

first_img3 UK shares I’d avoid because hedge funds expect them to fall Edward Sheldon, CFA | Wednesday, 20th January, 2021 | More on: CINE PFC SBRY Enter Your Email Address Image source: Getty Images. 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. 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.center_img Edward Sheldon has no positions in any 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. 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. 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. One thing I always keep a close eye on as part of my investment research is the list of the most shorted UK shares. These are the shares that hedge funds and institutional investors are betting heavily against.When stocks are heavily shorted, it pays to be careful. The hedge funds don’t always get things right yet, quite often, they do. Carillion, Thomas Cook, Debenhams… these were all heavily shorted stocks and look what happened to them.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…Here, I’m going to highlight three UK shares being shorted heavily right now. Given the high level of ‘short interest’ on these stocks, I’d steer clear.These UK shares look riskyOne of the most shorted stocks on the London Stock Exchange right now is cinema operator Cineworld (LSE: CINE). According to shorttracker.co.uk, 9.7% of its shares are being shorted. That’s a worrying level of interest.It’s not hard to see why the hedge funds are targeting Cineworld. For starters, 2021 is likely to be extremely challenging for cinema operators due to Covid-19 restrictions. Even after vaccines are rolled out, admission numbers are likely to remain depressed.Secondly, Cineworld has a huge debt pile. In a recent trading update, the company advised it now has aggregate gross debt financing of $4.9bn. This makes the company vulnerable financially.Overall, Cineworld is a short seller’s dream. The company faces huge challenges due to Covid-19 and has a very weak balance sheet. Given the high level of short interest, I’d avoid the stock.Criminal investigationTurning to the oil and gas sector, Petrofac (LSE: PFC) is another UK share I’d avoid. It’s currently the fifth most shorted stock in the UK, according to shorttracker.co.uk, with 7.9% short interest.It’s quite obvious why this stock is being targeted. Currently, Petrofac is being investigated by the Serious Fraud Office in relation to bribery allegations associated with three historic contract awards in the UAE in 2013 and 2014.Last week, Petrofac announced that a subsidiary employee has admitted additional charges under the UK Bribery Act 2010. This resulted in the company’s share price crashing more than 30%. Clearly, the hedge funds believe there’s more downside on the cards here. I’d steer clear.Losing market shareFinally, Sainsbury’s (LSE: SBRY) is also a stock I’d avoid. It’s currently the third most shorted UK share and sports short interest of 9.3%.Sainsbury’s doesn’t have obvious problems like Cineworld and Petrofac. However, digging deeper, there are some issues to be aware of.The first is Sainsbury’s is rapidly losing market share to competitors such as Ocado, Lidl and Aldi. In January 2017, its market share was 16.5%. In December 2020, however, its market share was 15.7%.The second is the supermarket giant has a large amount of debt on its balance sheet. At 19 September 2020, net debt was £6.2bn.It’s also worth pointing out that Sainsbury’s shares have had a good run recently. Since the start of September, the stock has risen about 40%. Perhaps the short sellers see this share price rise as excessive.Whatever the reason they’re short, I’m steering clear of this UK stock. When hedge funds are betting against a stock, caution is warranted. See all posts by Edward Sheldon, CFAlast_img read more

Why I’d shun this high-yielding FTSE 100 stock that ticks a lot of investors’ boxes

first_imgSimply click below to discover how you can take advantage of this. Why I’d shun this high-yielding FTSE 100 stock that ticks a lot of investors’ boxes 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. FREE REPORT: Why this £5 stock could be set to surge See all posts by Kevin Godbold However, I’d take a close look at this one. 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 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 Kevin Godbold | Wednesday, 17th February, 2021 | More on: RIO Image source: Getty Images Of course, share price levels mean little in themselves and good investing is all about analysing the fundamentals and valuations of underlying businesses. But the highs on the Rio Tinto chart have almost always been fleeting and followed by precipitous plunges.Valuation compression is a ‘thing’After all, this business is cyclical. And its nature means revenues, cashflows, earnings, shareholder dividends and the share price will likely fluctuate. Meanwhile, City analysts predict an advance in earnings in 2021 of around 30%. If this was a growing business in a less cyclical sector I’d expect a lofty valuation with those growth prospects.But with the share price near 6,477p, the forward-looking earnings multiple for 2021 is just above nine. And the anticipated dividend yield is a little under 7%. That valuation looks undemanding.But when cyclical businesses are posting big profits, the stock market tends to compress their valuations. That happened with the London-listed banks over the past decade before the Covid crash, for example. And I think it could be happening with Rio Tinto.So, as profits perhaps continue to rise in the years ahead, the valuation could contract to account for those increases rather than the share price going up. And I reckon that could happen because the next cyclical down-leg is coming. We just don’t know exactly when!Rio Tinto may prove to be a decent investment from where it is now. But I’ll watch from the sidelines for the time being. Kevin Godbold has no position in any share 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. At first glance, FTSE 100 miner Rio Tinto (LSE: RIO) looks like an attractive stock. It’s got a high dividend yield, a low-looking valuation, escalating profits and modest levels of debt. And those attributes combine with positive director comments to make the share appear a potential winner. And it may prove to be.Why I’m cautious about Rio Tinto nowHowever, I’m cautious about Rio Tinto right now. My first consideration when appraising a company in the mining sector is cyclicality. And I’m mindful of the advice written by Peter Lynch, who once excelled in managing the Fidelity Magellan Fund. He cautioned that cyclical stocks can be at their most dangerous for investors when they look at their most attractive. And that usually occurs after a long period of strong earnings.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…And I think Rio Tinto is in that zone now. Earnings have been riding high since dipping into negative territory during 2015. In today’s full-year report, the company posted underlying earnings per share 21% higher than the prior year. And net debt fell from $3,651m to $664m.The FTSE 100 business has been trading well. And the directors increased the ordinary shareholder dividend by 21% with a special dividend on top of that. Chief executive Jakob Stausholm said in the report the year had been “extraordinary”. He reckons “strong commodity prices” helped drive the good performance of the business.But if commodity prices fall in the future, so might the company’s profits and cash flows. And if that happens, the share price and shareholder dividend payments will likely decline as well. Meanwhile, the stock is currently trading above the top of its previous multi-year range.last_img read more