Primary Recommendation

Greene King - Best in class pubs firm offers strong medium-term growth opportunity

April 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Consumer-driven shares, like retailers and pub operators, have fallen in recent weeks. They could fall further given the present gloom among investors about prospects for the UK economy. But in the case of Greene King, it seems unlikely that there is much downside risk. The prize for an investor taking a contrarian view could be great with the shares on a soon-to-be prospective PE of 8.8 (with no downgrades), a yield of 5.1% and the support of freehold assets.When we made it one of our New Year Naps for 2010 we noted that as one of the best run operators it is ideally placed to benefit from the dramatic shake-out in the pub sector, which has seen up to 52 licensed houses close each week since the onset of the credit crunch. But as ...

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Elementis - Huge Asian opportunity for specialty chemicals group

Valiant Petroleum - Fast growing North Sea oil producer on soon-to-be prospective PE of 3.6

Greene King - Organic growth slows (September 2015)

Greene King (December 2014)

Greene King (August 2014)

Greene King - Large disposal of non-core pubs (June 2014)

Greene King - Shares heading for Â£10 (February 2014)

Greene King - Scorching summer boosts trade (October 2013)

Greene King - Heat wave should boost pub sales (August 2013)

Greene King - Gains since recommendation: 88% (June 2013)

Greene King - Shares hit new high of 675p (February 2013)

Greene King (October 2012)

Greene King - Shares hit three-year high (August 2012)

Greene King (June 2012)

Greene King (March 2012)

Greene King - Shares finally wake up (February 2012)

Greene King - Managed pubs doing well (October 2011)

Greene King (September 2011)

Greene King - 4.9% jump in managed pub like-for-like sales (August 2011)

Greene King - 8.2% jump in like-for-like sales (June 2011)

Greene King - Acquires Cloverleaf (March 2011)

Greene King - To expand managed pubs business (August 2010)

Greene King (June 2010)

Greene King - Strong Christmas trading (March 2010)

Greene King - Managed pubs growing well (January 2010)

Greene King - Trading more upbeat (October 2009)

Greene King - Resilient final results (August 2009)

Greene King - 3:5 rights issue at 270p (May 2009)

Greene King - Well financed pubs operator over-sold on prospective PE of 6.3 (March 2009)

Greene King - Well run pub operator on PE of just 5.4 (December 2008)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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