Secondary Recommendation

Whitbread - De-rating may renew call to float fast growing coffee branch

March 2016

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.

Whitbread, owner of the Costa Coffee and Premier Inn chains, has been a pleasing recommendation for TMI, with the shares hitting a high of almost 5500p in April ‘15, up from our tip price of 2088p in August 2012. At that time the UK was finally emerging from the harrowing credit crunch but the irony is that the shares have retraced by over £17 during the recent selling frenzy even though real consumer incomes are rising thanks to cheap oil, low interest rates and very strong employment. Investors are also choosing to ignore Whitbread’s fabulous record in which pretax profit has risen from £213m to £488m and eps from 63p to almost 214p in the eight years ended February 2015.The company is famous for bui ...

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Whitbread (October 2018)

Whitbread (July 2018)

Whitbread (December 2017)

Whitbread (August 2017)

Whitbread (December 2016)

Whitbread - On track to open 85,000 rooms by 2020 (July 2016)

Whitbread - Costa & Premier Inn still going strong (December 2015)

Whitbread - Now targeting 85,000 hotel rooms by 2020 (June 2015)

Whitbread - Shares hit high of £53! (April 2015)

Whitbread - Gain to date: 112% (December 2014)

Whitbread (August 2014)

Whitbread - Broker has price target of 4650p (June 2014)

Whitbread - On track to have 75,000 rooms by 2018 (December 2013)

Whitbread - Launches new hotel concept (August 2013)

Whitbread - Unveils new expansion target for its budget hotels business (June 2013)

Whitbread (February 2013)

Whitbread - Shares have now gained 283p since our recommendation (December 2012)

Whitbread - All divisions going well (October 2012)

Whitbread -Budget hotels and coffee shops drive surge in eps growth (August 2012)

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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