The Lemon Fool

simoan wrote:More poor news flow.

Q3 profit miss by Hindustan Unilever: https://www.reuters.com/business/retail ... 024-01-19/

And Ben & Jerry are at it again: https://www.bbc.com/news/business-67991822

Hmmm. Approaching 52 week low share price. Yield nudging 4%. I have bought in the past once yield gets above 4% and sold later at a profit. But Unilever looks more and more like a 1980's ICI style company to me as time passes. I don't think I'm a buyer.

BullDog wrote:

simoan wrote:More poor news flow.

Q3 profit miss by Hindustan Unilever: https://www.reuters.com/business/retail ... 024-01-19/

And Ben & Jerry are at it again: https://www.bbc.com/news/business-67991822

Hmmm. Approaching 52 week low share price. Yield nudging 4%. I have bought in the past once yield gets above 4% and sold later at a profit. But Unilever looks more and more like a 1980's ICI style company to me as time passes. I don't think I'm a buyer.

I wouldn't be quite so negative. Despite the profit miss the shares are up in both India and the UK, which is a good sign. The best time to buy is often when sentiment is awful and everyone who wants to sell has sold. That's when a bottom forms and the upside outweighs the downside. Don't get me wrong, there still is downside and I am not expecting sparkling FY23 results, but IMHO the risk/reward is currently to the upside on a medium term outlook as there's a lot of self-help that can be done even if sales are not growing quickly.

As I topped up a couple of days ago you can guess who's argument I'm hoping is correct.

I was already a holder and expected to top up in the usual spring dip that unusually didn't appear.

This dip was a bit earlier than expected but I had cash available from a sale so it made things a little bit easier. One hopes that things return a bit more normailty just getting on running a business and not having to worry about the mission statement of my mayo.

I would rather my ice-cream be invested in having less nasties and processed bits in it than politics on the other side of the world.

Maybe ULVR should do a range of politicians that earned something for the country instead

I have bought Unilever twice in15 years, both times when at historic yield highs, I have doubled my money invested whilst taking +3% yield to direct elsewhere. Might this be another time to get more? I know I don't know but it doesn't strike me as a particularly bad buy.

kempiejon wrote:I have bought Unilever twice in15 years, both times when at historic yield highs, I have doubled my money invested whilst taking +3% yield to direct elsewhere. Might this be another time to get more? I know I don't know but it doesn't strike me as a particularly bad buy.

Depends entirely on how much faith you have in the management. I happen to see too many similarities between Unilever and how ICI became back in the 80's and 90's. So I have no confidence in the Unilever management. I am quite possibly too pessimistic. We shall see in the fullness of time. For sure.

It's not done much in the last 5 years....Total Return of CTY bettered it!

source: https://www.hl.co.uk/funds/fund-discoun ... ion/charts

monabri wrote:It's not done much in the last 5 years....Total Return of CTY bettered it!

source: https://www.hl.co.uk/funds/fund-discoun ... ion/charts

And that's a pretty modest bar indeed.

I've had both since 2009. ULVR has a TR of 9.24% and has doubled the payout. CTY has managed a TR of 7.31% with a much slower dividend increase. Both are worth keeping, I believe - the art of survival is to have many irons in the fire and not to be too concentrated unless one is a truly expert investor.

Granted ULVR must be riskier being a single share, but I do not feel inclined to sell it. Adding is possible, but since I have quite a big holding, other companies might get preference. However, it always was my policy to invest in ULVR when the yield is as good as it gets, so I might be tempted to an extra titbit.

Arb.

I added today at 3700p.

These individual share boards should be about not just share news but any discussion about the share.

Latest news: bluedonkey bought more Unilever.