Primary Recommendations

Cake Box - Cake shop franchise on the turn; PE less than half former peak

February 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.

Your editor has been recommended to give up alcohol and refined sugar in recent years, making Seasonal and New Year celebrations a less foggy experience but one thing is crystal clear; desserts are far more addictive and harder to ditch than booze. I mention this after noting how American cakes and fast food chain Dairy Queen, one of billionaire investor Warren Buffett’s most successful investments, has enjoyed stellar success of late. After seeing pretax profit climb from US$27m in 1987 to US$162m in 2020 it subsequently lifted off almost vertically to US$1,035 million in 2021 when demand went ballistic during the Pandemic as its franchisees shoved cakes through car windows as fast as is humanly possible. It’s well-known that the ...

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Dr Martens - D2C to drive margins higher

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 - Upgraded site target not reflected in lowly prospective PE of 11.2 and then 9.7 (December 2023)

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

Cake Box - Rejects bid approach (September 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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