Professor Glen Arnold

Kingfisher’s shares (LSE:KGF) have fallen from 440p in 2014 to 190p. But average earnings per share over the last decade have been 22.7p, giving a cyclically adjusted price earning ratio almost half that of the UK market at 8.7.  Dividend yield is 5.6%. Why has Mr Market pushed the share down so much? Here are […]

Today I’ll discuss the different parts of Kingfisher (LSE:KGF). (I would appreciate it if you can add your observations on its various businesses, as I’m not as familiar as I should be with the various divisions of Kingfisher). It is frequently said of the Group that “a sum of the parts” valuation would total to […]

I’m sorely tempted to invest in Kingfisher (LSE:KGF) now, despite both the fear of Brexit chaos and the downturn in the DIY market.  It’s a company that’s been forced to cope with some serious problems in recent years – many of which it inflicted on itself. As a result, its market capitalisation has fallen from […]

I’ll use Piotroski’s nine variables to start the thinking about the potential for financial distress hitting Caffyns (LSE:CFYN). Is the company profitable? In the year to March 2019 Caffyns made £0.952m profit after tax from continuing operations, therefore it gains a Piotroski point. 2. Does the company produce positive cash flow from operations? In recent […]

Caffyns (LSE:CFYN) operates from 13 locations selling and servicing cars.   It holds the freeholds of large plots in towns in Kent and Sussex, therefore it has valuable real estate. The book value of property stated on the balance sheet has been understated for years; each annual report tells us that property experts have been called in […]

Caffyns (LSE:CFYN) is an awkward company for undertaking cyclically adjusted price earning ratio analysis because less than half of its earnings comes from the operating business of flogging cars. Half comes in irregular and unpredictable lumps of profits from selling off property or businesses. To try to gain some clarity, I first calculate average earnings […]

Wynnstay (LSE:WYN) is an agricultural and rural supplier involved in a good spread of market segments.  Its diversity gives it some resilience in the face of a storm or two occurring in particular product/geographical markets. However, a perfect storm, such as a bad Brexit causing a farming recession, could cause profits to suffer for some […]

Given the enormous political uncertainties over the next few months I’m keeping lots of dry powder ready to invest when opportunity arises amid the flux.  While I’m not committing much money to new investments, I will be analysing companies, waiting for a good moment to invest. One company that caught my eye has already suffered […]

Warren Buffett’s interview with Andy Serwer of Yahoo Finance contains some nuggets we should all keep in mind (“Warren Buffett shares advice on becoming successful”): Q: What about life advice? Buffett: Well my advice is that the most important thing, aside from things I’ve already talked about [see yesterday’s newsletter] is really who you associate […]

I’m constantly having to learn new things.  For example, it’s only recently that I thought about the difference between being smart and possessing wisdom. It was brought to the fore again when, on holiday, I tested the power of the wifi by going to Youtube to play something – anything.  Youtube’s  algorithm suggested I watch […]