The Lemon Fool

With reference to viewtopic.php?p=631357#p631357

A themed question on Luxury! ..(No reference to Monty Python required... I think I got away with it?

With Burberry shareprice in a huff and Louis Vuitton Moet Hennessy and Diageo raising trading concerns, are there any views regarding whether now is a good entry point for these companies?

I know little about the other two, but I feel that the reaction to the profit warning by DGE has been overdone. The yield is fairly low, and has been higher in the past. I rate it as a recovery share, because drinking alcoholic drinks is not going out of favour.

TJH

tjh290633 wrote:I know little about the other two, but I feel that the reaction to the profit warning by DGE has been overdone. The yield is fairly low, and has been higher in the past. I rate it as a recovery share, because drinking alcoholic drinks is not going out of favour.

TJH

I think that booze is going out of favour like baccy has been. I see bombs have been coming back recently. No idea if it's permanent nor whether the companies might diversify. There's still money to made in an industry in an ex growth manged decline and diversify like Shell going from shells to transport, oil to renewable or Imperial tobacco rebranding as Brands and DGE or LVHM recovering.

BBRY is on a 4.2% yield and the dividend growth in previous years has been pretty good!

https://www.dividenddata.co.uk/dividend ... ?epic=BRBY

LVMH is a growth play with a low dividend ( and with a burden of withholding tax..?)....from a total return point of view it has delivered in spades.

monabri wrote:With reference to viewtopic.php?p=631357#p631357

A themed question on Luxury! ..(No reference to Monty Python required... I think I got away with it?

With Burberry shareprice in a huff and Louis Vuitton Moet Hennessy and Diageo raising trading concerns, are there any views regarding whether now is a good entry point for these companies?

The rich are getting richer and there's more of them so the luxury sector should do well.

BoE

monabri wrote:With reference to viewtopic.php?p=631357#p631357

A themed question on Luxury! ..(No reference to Monty Python required... I think I got away with it?

With Burberry shareprice in a huff and Louis Vuitton Moet Hennessy and Diageo raising trading concerns, are there any views regarding whether now is a good entry point for these companies?

This is caused by the slowdown in Chinese consumer spending in the case of BRBY and LVMH. From memory, something like 40% of Burberry sales are to Chinese customers. LVMH is less, but China is still something like 30% of sales. Until China comes out of its slump, I don’t personally see a reason to increase my BRBY holding. However, I did indirectly buy some with a recent top up of Finsbury Growth & Income which is on a 7% discount to NAV currently.

Sorry to piggy back on this thread but does anyone have any strong views of gaining exposure to LVMH directly or via Christian Dior (CDI.PA). Looking at it Christian Dior controls a large % of LVMH equity. On a look through basis there is a large discount in the LVMH holding the Christian Dior share price however, Christian Dior has lagged LVMH in terms of total return and the situation is complicated by the family ownership of both. Clearly the discount is only of interest if it eventually reduces which may require a series of corporate actions to simplify the ownership structure.