Financial Trading Blog
Stock of the day 01/12/2015 – Greene King PLC
However, things have begun to look up in the past fortnight; can the stock continue to inspire investors’ good cheer with its half year results on Wednesday?
A rather dire decline in 2014 was quickly mitigated in the first quarter of 2015, with Greene King surging from £7.41 to a year (and 11 month) peak of £8.91 between January and the start of March. However, the stock couldn’t sustain this price and, after dipping below £8 on the eve of the UK election, was trading around £8.20 towards the end of June.
(Source: IT-Finance.com 01/12/2015)
Greene King received a boost on June 23rd, however, as it completed its £774 million takeover of the Spirit Pub Company, sending the stock back to the £8.50s, the CMA stating a meagre 16 locations, of the combined 3100 plus pubs owned by the two companies, had to be sold. The good news (sort of) continued a week later, as Greene King announced a 3% rise in full year sales to £1.32 billion alongside a 2.7% decline in pre-tax profit to £168.5 million.
After hovering between £8.45 and £8.65 throughout July and the majority of August Greene King then fell below £8 once again as the global markets took a tumble, before a start of September trading statement (containing a 1.3% rise in like-for-like sales for the 18 weeks to 6th September) dragged it back to £8.40.
Yet this recovery was quickly nipped in the bud, and a drop that began in the second half of September soon culminated in Greene King hitting a 9 month low of £7.71 in the middle of October, something it almost matched a month later. However, in the company’s latest twist, a series of positive broker upgrades, including a ‘Buy’ from Deutsche Bank, lifted the stock in the second half of November, leaving Greene King at a current trading price of £8.53 (IT-Finance.com, 01/12/2015).
In terms of its half year figures on Wednesday, Greene King is expected to post revenue of £1 billion (compared to £700 million in the second half of its last fiscal year), with analysts forecasting a big boost brought on by the acquisition of the Spirit Pub Company.
Greene King PLC has a consensus rating of ‘Buy’ with an average target price of £9.64.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to machibet77.com.
