Tobacco stocks deserve better treatment 1 Nov 2005 Smoking bans, litigation and declining volumes have seen tobacco stocks lag other European consumer goods. Yet Imperial Tobacco s results prove, they still offer high margins, piles of cash and growing profitability. A 20% discount seems unfair.
Dell proves it’s going ex-growth 1 Nov 2005 The computer group s goal of doubling sales to $80bn by 2008 looks more misguided than ever after its latest profit warning. Dell needs to stop focusing on sales growth, and start trying to raise margins in its PC business.
Hedge funds muscle into Peacock buyout 1 Nov 2005 They have been able to get in because they need lower returns and are less fixated on control. Peacock may look a special case. It s a growth company. But this shows how hedge funds may cherrypick the juiciest buyouts.
Praktiker IPO not as wobbly as it looks 1 Nov 2005 It looks a nightmare. A German retailer that was a dog the last time it was on the market. Oh, and private equity just turned it down. But the E1bn DIY chain is actually a wellrun recovery story. At a suitable discount, it looks a reasonable bet.
UBS u-turn on fixed-income strategy adds up 1 Nov 2005 Six months ago, the Swiss bank was trumpeting its decision to pull back from fixed income and commodities. Now it s going the other way. But a change of tack is wise, given thirdquarter results again show UBS punching below its weight in investment banking.