UK Stock I'm Buying November 2024

Summary

In this video, the speaker discusses recent stock purchases and investment strategies focused on UK companies, particularly emphasizing growth in Canada for a historically UK-centric firm. They highlight investments in B&M, noting its undervaluation despite strong financials and plans for expansion, and Legal & General, valued for its attractive 9% dividend yield. The speaker anticipates potential market recovery and profitability increases, while remaining cautious of upcoming economic announcements that could influence further investments. The video aims to engage viewers with insights on current market conditions and personal investment decisions.

Takeaways

• 😀 The speaker emphasizes the importance of diversifying investments across different sectors, focusing on both growth and dividend-paying stocks.
• 📈 Recent updates show positive financial performance, with significant revenue growth in both the UK and Canada for companies like Holloway.
• 🇨🇦 Holloway's expansion into Canada has been notably successful, contributing to a 42% revenue increase in that market.
• 🛒 The speaker initiated a position in B&M, noting that the stock has underperformed compared to its financials, presenting a buying opportunity.
• 💡 B&M's financial growth projections are strong, with an expected net profit increase from £194 million to £388 million by the end of financial year 2025.
• 📉 The speaker plans to double their investment in B&M if the stock price drops further, indicating a proactive investment strategy.
• 📊 Legal & General offers an attractive 9.3% dividend yield, making it a favorable option for income-focused investors.
• 🏦 The speaker anticipates that interest rate cuts in the UK could increase investor interest in high-yield dividend stocks like Legal & General.
• 🔄 The UK market is experiencing challenges, but the speaker remains optimistic about a potential recovery that could benefit these companies.
• 📝 The speaker encourages viewer engagement by inviting them to share their investment choices and opinions on current market conditions.

Q & A

What investment strategy did the speaker use for Hollow Ball?

The speaker mentioned that they bought more shares in Hollow Ball after a year and a half, indicating confidence in the company's growth, especially due to the success of its expansion into Canada.

How has Hollow Ball's revenue growth been characterized?

The recent update showed a revenue increase of 7.2%, with a significant 42% growth in Canada, highlighting the company's successful market expansion.

What are the speaker's plans regarding their investment in B&M?

The speaker started a new position in B&M and plans to double their investment if the stock price drops by another 10%, reflecting a strategy to capitalize on potential undervaluation.

What financial metrics are highlighted for B&M?

B&M trades at 11 times earnings, which is significantly lower than its usual trading range of 17-18 times. The company is expected to see revenues grow from about 3.2 billion to 5.8 billion, indicating strong growth potential.

What is the main reason for the speaker's investment in Legal & General?

The speaker is primarily attracted to Legal & General for its high dividend yield of 9.3%, viewing it as a consistent source of income amidst economic uncertainties.

What are the expectations for Legal & General's profitability?

The speaker anticipates a recovery in net profits for Legal & General, aiming to return to pre-COVID levels, which would potentially lead to a rise in share price.

How does the speaker perceive the current market environment in the UK?

The speaker suggests a cautious optimism about the UK market, acknowledging challenges but indicating potential recovery, especially in light of interest rate changes.

What is the speaker's outlook on future UK stock investments?

The speaker is assessing the market conditions and plans to adjust their UK stock investment strategy based on upcoming budget announcements, which could impact market dynamics.

What insights does the speaker provide about the consumer environment and retail stocks?

The speaker notes that retail stocks like B&M saw increased activity during tough consumer environments, but the recent declines in stock prices do not align with the company's strong financial performance.

How does the speaker encourage viewer interaction regarding investments?

The speaker invites viewers to share their current investment strategies in the comments, fostering community engagement and discussion on market trends.