Partner with US
login
Open Free Account

Resources

Morning Market Scoop 16 October 2018

/
Barry Dumas
Moring-market-scoop

Famous Brands and Cannabis Hype

The best brands in the retail food sector face some heat and cannabis has taken the world by storm and the hype around cannabis companies seem to be the hot topic of discussion for investors.

I'm Barry "The Beef Dumas" and this is your morning market scoop!

Let's drop it like it's hot this Tuesday:

 

 

Famous-Brands-Stock-Price-falls

 

"If you can't stand the heat, get out the kitchen"

What’s the scoop? Famous brands

Famous brands, probably holds some the country’s most “Famous Brands” when it comes to the retail food sector. The Company released a trading statement yesterday which saw the share price fall over 6.5%.

  • The trading statement stated that the Groups results for the six months (ended 31 Aug 2018) were expected to be stronger that the previous comparable period. Mainly due to SA and AME improved performance which would show a solid increase in operating profit. However, GBK (Gourmet Burger Kitchen) showed a larger operating loss (£2.1 million) than in the prior comparable period (£872 000).

The big picture the interim headline earnings per share (HEPS) compared to the prior comparable period would increase by approximately 3% to 14%. The results for the Group will be released on the 29thof October 2018.

What does all this mean for me?

  • If you are a shareholder, then continued pressure on the retail sector and Gourmet Burger Kitchen’s performance should be under your micro scope going forward.

Cannabis-stocks-soar

 

The world has "Greenies"

What’s the scoop? Cannabis

Cannabis has taken the world by storm and the hype around cannabis companies seem to be the hot topic of discussion for investors.

  • We have even seen major corporations like Coca-Cola jump on the band wagon as reports came out that Coke is currently in talks with Aurora Cannabis to produce cannabis infused beverages.

There are over 135 publicly traded cannabis companies in Canada alone which speaks to the current hype we are seeing. Canada will legalize the recreational use of Marijuana on the 17th of October, so we might see even more entrants to the cannabis market.

The big picture Analysts are already forecasting that the number of entrants to the cannabis market will drastically reduce over the next three years or so as promises at company valuation stage can’t possibly be met or from unsustainable business models. 

What does all this mean for me?

  • If you want to make cannabis part of your portfolio I would suggest investigating the more established companies focusing on medical marijuana going forward. Also, companies collaborating with beverage companies might have great long-term growth prospects.

#TradeWars Tip

The market never takes prisoners, so remember your stop loss.




Trade Wars GT247.COM

SEARCH ALL RESEARCH