Uk Stock Writeups

Pearson. Best known for its ownership of the Financial Times, the core business is educational books and accessories, both hard copy and via the internet. Newspaper titles have been sold off - the most recent being France's 'Les Echos', leaving just the FT, which produced a strong first half profit when consensus was for a loss. The education business is steady; the company is one of the top three in the world. Expansion into emerging markets is also providing growth. Whilst high earnings will be impacted near-term when translated into sterling, the underlying business is strong; at the time of purchase, the overall valuation was within 5% of a 10-year-low. A strong balance sheet and low gearing a further bonus.

Sedol	Type	Price	Date
0677608	Buy	£ 7.88	23/10/2007

Premier Foods was brought to the market in July 2004 by a private equity firm, who have now sold their entire stake in the company. It specialises in dry grocery products (teas & beverages, convenience foods, pickles, spreads & desserts etc.) and is focused on driving margin expansion through brand growth & cost cutting. The company is making a name for itself by acquiring well-established but neglected brands that fit with their existing product portfolio, and then revitalising them through targeted investment in marketing. Their success in this has already been demonstrated with the Branston and Ambrosia brands, and the recent acquisition of Birds Eye custard suggests there is still more to come. The company is highly cash generative, with a forecast 10% FCF yield in 2005 supporting a healthy estimated dividend yield of almost 5%. With a proven and successful strategy in place and strong cashflows supporting such a healthy dividend, this company is a BUY.

Sedol	Type	Price	Date
B01QLV4	Buy	£ 3.076	02/06/2006
B01QLV4	Buy	£ 2.842	25/04/2006
B01QLV4	Buy	£ 2.935	09/03/2006
B01QLV4	Buy	£ 2.81	03/11/2005
B01QLV4	Buy	£ 2.85	08/03/2005
B01QLV4	Buy	£ 2.835	07/03/2005
B01QLV4	Buy	£ 2.608	16/12/2004