Kerry group

Lash_Alert

Kerry shares are going through a rough time at present, market over reaction to Brexit? Solid free cash flow generating company with free access to high quantities of debt. What are people's thoughts

Kerry2016

Lash_Alert wrote: »

Kerry shares are going through a rough time at present, market over reaction to Brexit? Solid free cash flow generating company with free access to high quantities of debt. What are people's thoughts

The Irish times said people are selling up shares in the food and ingredients sectors, buying shares involved in financial services which are expected to do well with the election of trump… Trumps election and the Brexit vote both sent shockwaves through the share price, that and the fact that they were a bit on the high side has culminated in the whole lot going bad of late

Grecco

Kerry2016 wrote: »

that and the fact that they were a bit on the high side has culminated in the whole lot going bad of late

LOL a bit on the high side, try grossly overvalued.
Expect the share price to fall much further and they are not alone. I wouldnt touch any of the four big Irish food co.s at the moment

eire4

I see that the Kerry Group shares were sharply down today. They peaked last December at an all time high and have been down a little since then before a sharp drop today. Does anybody have any thoughts on buying Kerry Group shares as a longer term investment?

Limestone1

The Sunday Times featured both Kerry and Glanbia last week
https://www.thetimes.co.uk/article/kerry-and-glanbia-can-stomach-shared-pain-zxw02ttmj
They wouldn't encourage you to buy deeming them overpriced with low dividends.

garrettod

Thanks for that link Limestone1.

I think Kerry could pull back a bit on R&D, while they also have capacity to increase their dividend from earnings if they wanted to. With bond yields increasing, they may opt to do one or both of those things over the next 12-18 months, to satisfy shareholders who demand an acceptable future return.

Fundamentally, they are a very good company - strong management team, not overly reliant on one market or product etc. Granted, they are putting their faith in nutrition, but that doesn't strike me as price sensitive, so they just need to press on with it and get the revenue up and the margin will follow.

There's also the possibility of an acquisition, which would be very welcome if it provides cost savings in existing markets, or genuine new revenue and earnings.

I have a few shares in Kerry and I'm happy to stick with them.

eire4

Thanks for posting that article Limestone1 interesting. It will be interesting to see what Kerry does with its dividends this year and how the share price is towards the end of the year.