[SharePad] Screening For My Next Long-Term Winner: Fuller, Smith & Turner

***SharePad New Subscriber Special Offer***
Readers of my blog can claim one month of free data. Click now for details. #ad

10 September 2020
By Maynard Paton

First, a wealth warning.

The last price-to-book ‘bargain’ I looked at for SharePad was Hammerson.

Back then investors were in theory able to purchase £1 of assets for just 30p. The share price has since lost 75%.

A few tweaks to the same stock screen now leads me to Fuller, Smith & Turner

This pub group has suffered during the pandemic, but sleuthing via SharePad reveals substantial freehold assets that the balance sheet may significantly undervalue. 

This property backing may limit further downside as the group re-opens its pubs and aims to recover.

Read my full Fuller, Smith & Turner article for SharePad.

Maynard Paton

4 thoughts on “[SharePad] Screening For My Next Long-Term Winner: Fuller, Smith & Turner”

  1. I confess I’m very much attracted to this idea, quite possibly because I used to enjoy the product. I do wonder though, whether the company would ever entertain a sale of what I imagine are quite iconic properties. That said, the contrarian in my suspects that companies like this and others in the hospitality will bounce back hardest once the restrictions ease and life returns to normal. I was also interested in the Pref shares, but it doesn’t look like they trade much at all and I’m not even sure Interactive Brokers has them. As always, thanks for posting

    Reply
    • Hi Christian,

      Thanks for the comment. The company did sell its brewing interests last year, so management does not appear wedded to the past and the notion of numerous site disposals is perhaps not as fanciful as it once was. I suspect if the pandemic and restrictions drag on, then management will have to take a view on the more marginal outlets. Redeveloping some of the sites into housing could be a money-spinner. I too imagine the sector will recover strongly once restrictions are completely lifted, but the question remains whether the operators have the resources to see out the restrictions.

      Maynard

      Reply

Leave a comment