After six years of rapid house price growth, the market is beginning to show signs of fatigue and experts have warned the market to be braced for a sharp slowdown in April.
After five years of impressive industry defying growth, shareholders of the £850 million pub operator are faced with a premium rating of 15x earnings, as earnings go into reverse.
There will come a time when mining shares are worth tucking away, but instead of this week’s debt-refinancing being a vote of confidence, I fear it highlights just how bad things are for Glencore.
I believe the benefit of prolonged ultra-low interest rates and the possibility of predatory interest towards the defensive monopoly-like water provider make the weakness in Severn Trent an exciting longer-term entry level.
Recent interim results, published on 9th December 2015, revealed a 20% jump in profits and a boost in the dividend, as the company built on a strong start to the year.
Sales pressure has been removed, short-sellers will scramble to cover their positions and keen buyers may be more tempted to step in and acquire the shares today rather than waiting to buy at a 5% discount to the governments break-even price of 77p.