Is There a Bubble in Consumer Defensives?

Is There a Bubble in Consumer Defensives? By John Kingham Some of the biggest gainers from the UK's decision to leave the EU were internationally-focused consumer defensive stocks. This comes on the back of what has already been a multi-year bull run for consumer defensives as investors look for low risk yield in a post financial crisis world. Like most dividend investors I am a fan of these often boring but steady growth companies. However, the value investor in me is always wary of sharply rising share prices and general enthusiasm from other investors. And now with so much post-Brexit popularity, cheerleading and soaring share prices going on, I think the time is right to ask whether consumer defensives have become the latest bubble… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,941.19, an increase of 25.17 points. The FTSE 250 rose 20.47 points to finish at 17,941.85. The FTSE All Share climbed 17.10 points to finish at 3,779.13. The FTSE AIM All Share finished at 785.20, up by 2.09 points. Shares in housebuilder Bovis Homes (BVS) dropped 2.75% to 813p today despite the company reporting that revenues for the six months ended 30th June climbed by 18% to £412.8 million.  Profits before tax also rose by 15% to £61.7 million. Management believe that the fundamentals of the UK property market remain strong with resilient demand despite the worries surrounding the recent vote.  Get our August issue while its hot! Click HERE to read. Aim-listed explorer Ithaca Energy (IAE) decreased its average output by 3,200 barrels a day during the six months to 30th June, but succeeded in substantially reducing its operating costs. This allowed it to generate $82 million (£63.7 million), broadly flat with the equivalent period of 2016 despite the fall in production and realised prices falling by roughly 33%. Shares in the business rose by 3.88% to 67p. Reports have suggested that television content producer Entertainment One (ETO) has received an enhanced takeover offer from broadcaster ITV. The new proposal is priced at 280p a share, which would value the business at £1.2 billion. However, the rumour mill is also claiming that a rival approach from a US private equity outfit could be on the way, but that there could be regulatory hurdles for both bids. The shares rose by 16.20p to 255p.  Tomorrow's news today Persimmon (PSN) and Cairn Energy (CNE) will release interim results. Quote of the day "Forethought we may have, undoubtedly, but not foresight." - Napoleon Bonaparte Latest Stories Chart of the day: Andalas Energy and Power By Zak Mir Having been trolled for Tweeting regarding a possible turnaround on a technical basis at Andalas Energy last week, I thought it was only fair to go for a formal look at the charting situation, if only to wind up the troll even further… Click Here To Read The Full Story The Evil Diaries: A Major Advantage By Evil Knievil The chairman was in a very good mood yesterday afternoon when remarking on Team GB's stunning incidence of success in Rio. He sees that this indicates that we'll do very well once freed of the EU's shackles... Click Here To Read The Full Story Zak's Weekend Charts Round-Up By Zak Mir FTSE 100 Stocks BT Group (BT.A): Below 50 Day Line Targets 360p It would appear that while the wrangle between Ofcom and BT Group over Openreach may be still in the former state monopoly's favour, the market seems to be concerned the issue may be resolved against the telecoms group… Click Here To Read The Full Story Something for the Weekend – How Are Pubs Looking Now? By Adrian Kempton-Cumber My local pub has a movie night on a Monday. I saw a zombie movie there and I don't want to ruin it but everyone dies at the beginning. I wrote last June about the phenomenon that was making the pub business very lucrative for those that were getting it right… Click Here To Read The Full Story Chart of the day: Tullow Oil By Zak Mir While it may be argued that we are spoiled for choice in terms of bullish contenders for stock selection now that equity markets are back at highs and looking comfortable, it still pays to pick out the best looking technical situations if only to try to stack the odds of success in our favour… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news straight to your inbox. Once Weekly Round-Up Our mailing address is: Suite 88, 22 Notting Hill Gate, London W11 3JE Master Investor is a trading name of Master Investor Limited. 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