Associated British Foods (ABF) is a FTSE 100 name that is ‘a diversified international food, ingredients and retail group with sales of £13.9 billion, 133,000 employees and operations in 53 countries across Europe, Africa, the Americas, Asia and Australia’. It has been years and years since I last owned the shares and despite it being a very diversified business with Grocery (Twinings and Ovaltine), Sugar (UK beet sugar factories typically produce well over 1 million tonnes of sugar annually), Agriculture (animal feed, nutrition- and technology-based products and offers data services for the agri-food industry), Ingredients (yeast and bakery ingredients production) and Retail (hello Primark). And with regard to the shareholder base, don't forget that '54.5% of ABF is owned by Wittington Investments. 79.2% of the share capital of Wittington Investments is owned by the Garfield Weston Foundation, which is one of the UK's largest grant-making charitable trusts'. Lots of history...and secure ownership makes a real difference.
Hello, Share Tasters. One of the most popular shops on the street is Primark. It’s had a hard time of the pandemic though, as it doesn’t do online trading. Never mind, its stores are opening now. And thanks mainly to that, its parent company Associated British Foods (ABF) has seen a surge in revenue. It’s currently up by nearly a half on last time, reaching £3.6 billion.
Hello Share Shifters. You don’t hear of the fabled Santa Rally these days. After all, we do have more important virus-related issues to consider. However, there will be the usual Christmas boost to most shares and added to the joy of new vaccines that should see a bigger seasonal boost than ever to our shares. Though, as always, the opportunity to make money will be limited as the New Year should bring the usual market hangover.
Hello, Share Minders. There are some companies that you feel are more likely to withstand any disasters thrown at them, including the virus. One such firm is Associated British Foods (ABF), which has the cost-cutting clothing high street stores Primark and a food supply bit...
Hello, Share Seekers. This humble commentator has oft recommended that you should consider Associated British Foods (ABF). Not just because of the grocery side, but mainly because of the amazing attraction to shoppers of its Primark arm. Of course, this enthusiasm was knocked off course by the virus closing down Primark stores but now they’re open again and there seems to be an unseemly rush of buyers eager to make up for lost time...
Hello, Share Sifters. Some bad news from Primark. Though it sold £650 million worth of stuff in the previous month, the company says it’s made nothing since. This is because this High Street set-up - one of Britain’s most popular clothing stores - doesn't have an online operation. A badly mauled share price has reflected this...
Hello, Share Pullers. Food and clothing don’t usually go together but they do in the case of Associated British Foods (ABF) and Primark. The food bit owns the fab gear bit. And Primark, which often seems to be crammed with shoppers both young and old, could be propelling British Foods along...
Hello, Share Breakers. May I admit that some of my expensive wardrobe was bought in Primark, including the fetching purple polo shirt which I’m sporting now. Anyone who goes there can attest to the huge crowds its stores attract. More importantly, the queues to pay are usually long...
Hello, Share Dividers. I can't get my head around the fact that most of my wardrobe is supplied by a food giant. But the fact remains that Associated British Foods (ABF) owns Primark. And as anyone who shops in Primark knows, its stores burst with customers. This is not surprising because their togs are mostly extremely cheap.
Hello Share Swallowers. The wiser investor pays attention to consumer trends. And to buy shares in a company which is at the mercy of food fashions can be a risky undertaking. We all found this out as the price war among supermarkets began. But here are a few other companies I think might be ‘sells’ because of changes in the most basic type of food we eat.
Hello Share Tweakers. If I were an investor in Associated British Foods (ABF) I would be getting a little nervous at the moment. It processes and sells food and has the very different business of Primark, the budget clothes stores. You’ve probably discovered that these shops are often stuffed with customers as their prices can be remarkably low.
Hello Share Scorchers. My family is addicted to Primark stores. They will travel 60 miles just to go to our nearest one in Swansea. But it’s not my favourite shopping experience because its establishments are usually absolutely chocker with buyers. Not that Primark is not well equipped to serve them well, with a workforce of 60,000 across 300 stores in 11 countries. You didn’t think it was that big, did you?
Hello Share Flickers. There are some firms which loom large in our ordinary humdrum lives. One, which is rarely covered on this website, and probably our lesser rivals, is Associated British Foods (ABF)
Back in January I was enticed into making a value call on AB Foods(ABF) versus Next (NXT), coming to the conclusion that Next, which does not have a sugar business, looked the better value on what looked like a less excitable more restrained valuation. I now note that the gap between AB and Next has narrowed to about the narrowest it has been for a year.
Associated British Foods (ABF) reported some mixed results today prompting investors to take money off the table. A good Christmas trading update from its Primark subsidiary was offset by a weaker than expected performance from its sugar products division. The stock was down 4% at 11am. Given the strong run in the share price since June last year, investors have reasons to take profits.
For the life of me, I cannot find any current fact to justify the share price of Associated British Foods (ABF) – 2204p.
When I lit up the screen to check the final trading statement from AB Foods (ABF) yesterday I saw that with a kind of historic romance, the shares price had met its Waterloo at 1815p. Last week, when I started looking at the equity to try to discover - unavailingly - why one major investment bank concluded it would ‘outperform’ the share price was above 1900p. Last seen, it had gone through 1815p to 1810p. It will get worse.
There was a report earlier this week that a big international investment bank has ranked Associated British Foods (ABF) shares as ones to outperform. So I have cast my eye over this equity. I took a preliminary look at the share price noting that the shares are not only way above the five year trend line support but that the share price pattern has formed what technical analysts call a double top; generally regarded as a harbinger of doom.
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