Personal and undiluted views

449 days ago

So Boris you idiot – what happened to follow the science? Meanwhile Sweden vs Israel, God vs Man?

For what seems like an eternity, ever more restrictive and ludicrous rules have been imposed on us in an attempt to tackle a plague with a 99.97% survival rate on the basis that we must “follow the science.” Of course that was tommyrot.


3609 days ago

Guest Post: Aubrey Brocklebank: Dignity It's your funeral

God I am getting old. I knew Aubrey Brocklebank’s dad about twenty years ago. And now I find myself talking to the son. It is ather like hearing the name Potts at West Ham. I think gosh Stevie must be getting on a bit and then realise it is his son Danny on the pitch. Anyhow AB is a fund manager now doing a spot of writing and being a switched on fellow I am happy to help promote his ideas. As it happens his first article as a journalist is on Dignity (DTY) which I wrote about earlier today as well. We seem to agree. ‘Natch. Over to Aubrey…

“In this world nothing can be said to be certain, except death and taxes.” [1]

Price 1,088
Market Cap 5952
Price/Earnings 20.0
Price Book 35.1
Yield 1.3%

Dignity is a much loved small-cap stock. Panmure, N+1 Singer, Numis, and Investec are all bullish on DTY and have buy notes written about it. Only Peel Hunt is less bullish, though not enough to write a sell note. Supposedly this is a very secure and stable business and is deserving of a PE ratio of 20. Certainly from the price chart alone I might have to agree.


3610 days ago

Dignity – Death is not a one way bet

AIM listed Funeral homes group Dignity (FTY) is one of those companies whose shares always look expensive, but then always seem to head higher. You always kick yourself for not buying the stock, after all we have an ageing population and so death ( like taxes) looks a sort of one way bet. As it happens, that is not the case. At a share price of £11.02 the company is now capitalised at £603 million. Is this justifiable?

The group has expanded largely by opening more and more funeral parlours across the country. I had assumed, as I suspect had you, that an ageing population meant that it would have more, er .. customers. But it is pointed out to me that we actually face a bit of a demographic blip. The effects of WW2 and improved health care mean that for the next decade or so the number of “customers” will not actually increase but will fall marginally. It will start picking up again in c2022.