Research for 2009



Everyone considers Carillion to be a UK construction business – a sector far from being considered attractive in this economic climate. But the truth is that most of its profits now come from support services – a higher margin business that with it attracts a higher market rating. In fact much o [...]



An anagram of Chesnara is “earn cash”, fitting for a company that offers one of the most generous dividend yields on the stock market – over 8%. Chesnara operates predominantly as a consolidator of life-insurance funds that are not seeking new business, and then runs them down in an orderly [...]



With a 30% share of the UK grocery market, investors could be forgiven for thinking that Tesco’s growth days are behind it. However, Tesco still has a strong long-term growth story to tell. Domestically the forthcoming launch of Tesco Bank looks like a canny move to capitalise on the current d [...]



Following the large rise in the stock market over the last six months many markets are now pricing in a V shaped recovery, leaving little room for disappointment. Finding value has become a more difficult task. With international diversification increasingly important for the private investor, we h [...]



Those struggling to find value after the recent rally should look no further than Vodafone, currently trading at 140p per share. A huge British success story - its market capitalisation is more than £74bn - Vodafone operates across the world and indeed the majority of group profits are earned o [...]

BAE Systems


BAE Systems recent share price fall down towards its long term support level of 300p has presented a good buying opportunity for those investors not holding the stock. Much of the fall has been down to the pension scheme, which is in a large deficit. However, the “snapshot” measure required unde [...]



Please find below some background information on one of our core holdings Scottish & Southern Energy, rated as a solid hold. The UK’s second largest energy supplier is currently yielding close to 6% (which management aims to grow by 4% p.a.) and is trading on 10.4x earnings, a substantial disc [...]



GlaxoSmithKline have yesterday announced their half year results, reporting robust gross margins and strong revenue growth across the portfolio, particularly in vaccines. GSK has taken 195m orders for its swine flu vaccine and is currently in talks with over 50 countries over stockpiling the drug [...]



Please find this month's newsletter. [...]



Halfords currently yields over 5% and is trading on 10x earnings (a 30% discount to the sector), thus offering potential capital gains as well as income. It is a counter-cyclical company which will benefit from cost-conscious consumers cycling to work, taking more UK holidays this year and car owner [...]



Please find this month's newsletter. [...]

Year ahead


Please find an article on the year ahead that was published in the Gibraltar Chronicle this month. [...]