Turmoil creates buying opportunity

first_img Show Comments ▼ KCS-content whatsapp whatsapp Wednesday 16 March 2011 8:34 pm More From Our Partners Supermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comPuffer fish snaps a selfie with lucky divernypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comConnecticut man dies after crashing Harley into live bearnypost.com Turmoil creates buying opportunity Share WHILE the Mitchells & Butlers soap opera plays itself out in the boardroom, the company is doing swimmingly. Maybe the infighting has led to a creative tension that is good for business. Whatever the reason, investors should use the 2.9 per cent fall in M&B’s shares yesterday as a buying opportunity.The group holds some of the best assets in the business, including brands like O’Neill’s, Harvester and All Bar One. And it has a 16 per cent share of the attractive food-led pubs market – more than any of its competitors. Its balance sheet doesn’t look bad either; while others are nursing debt hangovers, Numis reckons M&B has a war chest of £500m to spend on acquisitions.M&B trades on an enterprise multiple of 8.3 compared to 8.8 for the rest of the sector (a better measure than the standard price to earnings ratio due to the sector’s indebtedness. It deserves to be rated more highly; investors who get in now could make a tidy profit. Tags: NULLlast_img

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