Thursday, 27 August 2015

Financial Orbit wrap 26/08/15

Five sentences or graphics which sum up the Financial Orbit output over the last 24 hours across the website, twitter account and anything else thought about...

1. Active management – ‘some 68% of actively managed funds in the UK all companies sector have outperformed the best-performing tracker’ during the last three months (via today’s FT).  Good news and feels important.

2. In my latest Share Prophets column I write up HSS Hire - which has had a disaster post IPO period (link here).

3. I write-up the results from the largest advertising company in the world WPP including a selection of my favourite charts (link here).

4. The Monsanto/Syngenta deal falls apart.  I see the latter is citing the following factors but I cannot help but think that shareholders - given a free vote - would have come to a different conclusion.  I am thinking about whether to buy back the half of my Syngenta shares that I sold on the bid announcement or not - a good company and now management are under pressure.  
Monsanto did not provide sufficient clarity on the following four issues:
  1. Their estimate of total cost and revenue synergies
  2. Their assumptions regarding net sales proceeds of seeds and traits
  3. The nature and extent of regulatory covenants that they were prepared to offer
  4. The assessment of risks and benefits from a tax inversion to the United Kingdom
5. Otherwise...a big US bounce, Schlumberger undertakes a big US oil services deal and the maker of Jack Daniels Brown-Forman confirmed good numbers despite some exogenous challenges: 

Looking ahead, the company confirmed its full fiscal year outlook of 6 percent to 7 percent underlying sales growth, underlying operating income growth of 8 percent to 10 percent and earnings per share in the range of $3.40 to $3.60.

"Despite a volatile global economy, adverse foreign exchange and increasing competitive intensity, our growth in underlying sales and operating income were impressive," said Brown-Forman CEO Paul Varga.

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