torsdag den 6. oktober 2016

Why Unilever is my favourite consumer goods play

 
Why Unilever is my favourite consumer goods play

By Robert Stephens

One of my best performing investments in recent years has been Unilever (LON:ULVR). It has risen by 33% in the last year even though the outlook for emerging markets has at times appeared uncertain. However, it is those same emerging markets which provide Unilever with a stunning growth outlook. For me, Unilever's exposure to developing world economies such as China and India makes it the best consumer goods company in the world.

A key reason for Unilever's gains in the last year is its long-term emerging market growth story. Its decision to focus advertising, marketing and supply-chain resources on the emerging world looks set to pay off. The growth opportunity on offer is above and beyond anything that the developed world can offer and this should positively catalyse Unilever's earnings

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The Master Investor Market Report

  • The FTSE 100 closed the day at 6,999.96, a decrease of 33.29 points.
  • The FTSE 250 fell 59.19 points to finish at 18,141.33.
  • The FTSE All Share dropped 10.74 points to finish at 3,815.79.
  • The FTSE AIM All Share ended the day at 826.33, down by 0.93 points.

Shares in budget airline Easyjet (EZJ) plunged 6.93% to 933.50p today after it warned that the falling value of the pound will cause a £90 million hit to profits, more than twice its previous estimate. The sterling cost of the company's dollar denominated fuel bill has soared in recent months. At the same time, revenues per seat for the full year are expected to fall by roughly 8.7% due to lower ticket prices.

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Homewares retailer Dunelm (DNLM) reported that total revenues for the 13 weeks to 1st October fell by 1.8% to £198.7 million as pleasant weather kept customers away from shops. However, the company saw strong growth in digital sales and the company has a store refurbishment programme underway with three branches set to be completed by the end of 2016. The shares dropped 4% to 823p.

AIM-listed oil and gas firm Ithaca Energy (IAE) announced that production during the first nine months of the financial year has been ahead of guidance and that commissioning operations for the Stella field are proceeding according to plan. However, the company will have to shut down production equipment for roughly two weeks during the third quarter in order to carry out maintenance work. The shares climbed 6.47% to 74p.

Tomorrow's news today

Progility (PGY) will publish final results.

Quote of the day

"Keep your eyes on the stars, and your feet on the ground."
- Theodore Roosevelt

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