Primary Recommendations

Cake Box - Upgraded site target not reflected in lowly prospective PE of 11.2 and then 9.7

December 2023

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.

Markets may have been tough in 2023 but history shows that quoted franchise businesses can make a lot of money for investors in both fair and inclement conditions. For example, in the USA shares in Dunkin Brands, famous for its Dunkin Doughnuts, bagels and coffee, have over the past 10 years quadrupled to US$105 / share while Starbucks has risen from US$4 to US$94 in just over two decades. Back on this side of the pond, Domino’s Pizza UK & Ireland, which dominates the pizza delivery sector, has soared from under 4p in 2000 to over 350p. In normal times these businesses can command PEs in excess of 25x because they throw off huge amounts of free cash. They lend out their name (with all the inherent brand benefits) and provide support ...

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Hunting - Explosive demand and a soon-to-be prospective PE of 9.0

Easyjet

Cake Box - New openings ahead of schedule (January 2025)

Cake Box - Rising sponge sales drives gross margin increase (August 2024)

Cake Box (June 2024)

Cake Box - Gross margin lifts sharply (January 2024)

Cake Box Like-for-like sales accelerate (October 2023)

Cake Box - Rejects bid approach (September 2023)

Cake Box - Cake shop franchise on the turn; PE less than half former peak (February 2023)

Cake Box (October 2022)

Cake Box (August 2022)

Cake Box - Strong pipeline of new opening (December 2021)

Cake Box - Liberum upgrades price target to 450p (November 2021)

Cake Box (August 2021)

Cake Box - Target price raised to 360p (June 2021)

Cake Box (December 2020)

Cake Box (November 2020)

Cake Box - Franchised cake shop business with plans to double estate to 250 stores (August 2020)

Cake Box - IPO spikes to large premium (August 2018)

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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