Wolseley’s dollar earnings make it an attractive Brexit play

Wolseley's dollar earnings make it an attractive Brexit play By Robert Sutherland-Smith I dubbed Wolseley shares an appealing post-Brexit play last June when the share price was 3,781p. I see no reason to alter that fundamental judgement even now that they are 4,244p. The latest annual results suggest that life remains tough at the operational level, with margins scarcely improving. However, outside the US the company has the UK and Scandinavia on the drawing board for reform and change to make these businesses more efficient. In my view, a rise in interest rates in the US should be good news for Wolseley because it will betoken more economic growth with more inflation to go along with it. There are several things that in principle make plumbing and heating equipment supplier Wolseley (LON:WOS) attractive. First is the fact that most of its business is outside the UK, and thus largely free of the incessant wrangling about what Brexit means, when it will happen and where it will take us. Moreover, with over 81 per cent of the Group's business in the US it gives UK investors the knowledge that this is at least one UK cyclical investment that will exist mainly above and beyond the fate of the UK economy over the next few years, as it slips anchor to search for new markets in the seas under the flag of the World Trade Organization… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,849.38, an increase of 41.71 points. The FTSE 250 rose 163.57 points to finish at 17,792.28. The FTSE All Share climbed 23.82 points to finish at 3,730.65. The FTSE AIM All Share ended the day at 818.09, up by 2.84 points. Shares in supermarket chain Sainsbury's (SBRY) dropped 9.80p to 241p after the company reported that like-for-like retail sales fell 1.1% during the 16 weeks ended 24th September. The firm blamed the fall on lower food prices and pointed out that transaction numbers and volumes had improved over the period. The acquisition of Home Retail group was completed on 2nd September. Don't miss our September issue! Click HERE to read. Engineering outfit Smiths (SMIN) booked revenues of £2.95 billion for the year ended 31st July, a 2% improvement over the prior year, but pre-tax profits dropped by 2% to £451 million. Management said that its oil services division was experiencing rough market conditions, but recommended that an increased dividend of 42p be paid. The shares climbed 4.04% to 1,443p. AIM-list pharmaceuticals group Clinigen (CLIN) reported revenues of £339.4 million for the year ended 30th June, an 84% increase over the prior 12 months following the acquisitions of Idis and Link Healthcare. Profits before tax climbed 65% to £51.2 million despite the increase in expenses linked to the takeovers. Shares in the firm rose 27.50p to 705p. Tomorrow's news today Merlin Entertainments (MERL) will publish a trading statement. Quote of the day "Indecision may or may not be my problem." - Jimmy Buffett Latest Stories Time to clean up AIM By Evil Knievil Yesterday evening BBC Radio 4 considered fraud at AIM. Apparently AIM has raised circa £100bn since it kicked off in the mid nineties. Accordingly, one can imagine why its progenitors within the LSE are not much minded to clamp down on fraud… Click Here To Read The Full Story S&P 500 is a perfect charting sell By Zak Mir With Deutsche Bank the next Lehman Brothers on this side of the pond, and a Punch & Judy Presidential Election Stateside, there is no reason and no justification for indices like the S&P to be near all time highs… Click Here To Read The Full Story Why I'm buying into SolGold's spectacular ascent By John Cornford My taking a profit on a small proportion of my stake in SolGold after its spurt to 12p following Newcrest International's offer to buy 10% at 6p per share is looking silly now that the shares are touching 18p – after what looks like a mini-buying stampede today... Click Here To Read The Full Story Jim Mellon: The things keeping me awake at night By Jim Mellon With the gaggle of visitors to my Spanish lair abating with summer, I've had a lot of time for thinking lately. It's been a quiet time for markets, seemingly, but there have been opportunities, some of which we've taken, and others which we outright missed… Click Here To Read The Full Story Barratt Developments: Imminent triangle breakout targets 350p By Zak Mir While the housing market is clearly still one of the main topics of conversation at dinner parties, and continues to hold up despite a fall in mortgage approvals by a fifth in August, the real issue is perhaps whether the rebound for housebuilders can continue… 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. 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