Obviously, there are going to be a lot of Diageo (DGE) products consumed at Christmas. More whiskey, rum, gin, beer et al all round. The usual festive fling makes no difference to all-round profits, of course. Christmas happens every year. But it’s the perception that counts.
Hello Share Changers. My recent support for a couple of big British firms has been criticised by Uncle Tom this week
Hello Share Fans. There is a mighty purveyor of drinkipoos based in the UK which is well worth putting money into. Perhaps not for the in-and-out trader, but almost certainly for the longer term.
Hello Share Tipplers. The big drinks firm Diageo (DGE) has had a dream rise to fame and fortune. But all that stopped about a year ago.
Hello Share Swingers: I live next door to a block of holiday flats. I'm amazed by the number of empty bottles they put out for recycling. Only two or three families knock back enough wine to fill the cellars of a big restaurant, as far as I can see.
With Sterling heading south (down nearly 10% since January) to a dollar exchange rate of 1.49 (last seen) this is surely the time to be buying a big successful UK company like Diageo (DGE) which as its carefully fashioned name implies, girdles the earth. With plenty of non-sterling earnings, it doesn’t need to do much to increase sterling denominated earnings. It is in short a classic sterling hedge.
Is it possible to be sacrilegious in the largely amoral business of stock picking and investment? I only ask the question because I had a thought about a stock that seemed exactly that! I struck me that Diageo (DGE) - a stock made seemingly only for buying and not selling - might be overvalued?
