To The Moon

Under ECB Rate Hike + LONDON BRIDGE HAS FALLEN: 

Are $Diageo PLC(DEO)$ ,$BAE Systems PLC(BAESY)$ ,$Associated British Foods plc(ASBFY)$ ,$Carnival PLC(CUK)$ ,$InterContinental Hotels Group PLC(IHG)$ in a Great Value to Buy?

You May be interested to Read: Positive Q2 Data of 6 Giant US-listed UK Companies, Bet Bullish?

There are two important news on Thursday:

1. ECB Rate Hike 75bps, the Second time Since 1999

European shares rose on Thursday led by gains in bank stocks after the European Central Bank delivered its biggest-ever interest rate hike to combat inflation, which is running at a half-century high and approaching double-digits. 

After the rate hike, the ECB's marginal lending rate is 1.5%, the main refinancing rate is 1.25%, and the deposit facility rate is 0.75%. This is the first time the European deposit facility rate has been positive in more than 10 years (since July 2012).

Source: European Central BankBy The New York Times

2. LONDON BRIDGE HAS FALLEN

Operation London Bridge was set into motion following the death of Queen Elizabeth II on Thursday, 8 September. The "London Bridge" plan was originally drawn up in the 1960s. The British royal family has a tradition of using the bridge name as the royal funeral code, which is a code to announce the news of the death of a member of the royal family.

As the spiritual leader of the British people and the cornerstone of the faith of the British Commonwealth, the death of the Queen may have far-reaching effects on the United Kingdom and the world. With the doubts about the monarchy and the royal family, the calls for the establishment of a republic are constantly rising, the monarchy may be shaken by wind and rain. In addition, the future of the Commonwealth of 54 countries is uncertain, more and more countries may seek to change the political system and cut off ties with the British royal family.

Source: https://newsbulletin247.com/

Monetary policy and political fluctuations are bound to affect the development of industries and specific companies in this field.

Below are 5 dual-listed Giant companies in both US and UK, Please joint o review their recent highlights see if they are great value stock right now. 

Note, all the data and information as of September 9th.

5 UK & US Dual-Listed Giants are in a Great Value to Buy?

1. The world's largest alcohol producer $Diageo PLC(DEO)$

$Diageo PLC(DEO)$Market Value around $100.1Billion at US stock market, and $DIAGEO(DGE.UK)$ market Value at GBX 8.59Trillion.

Founded in 1886, headquartered in London, England, with 31,485 full-time employees, it is a manufacturer of alcoholic products, including spirits, beer, wine, and ready-to-drink alcoholic beverages.

Source: www.stocktargetadvisor.com

The company’s organic net sales were up 21.4% year over year in fiscal 2022. Due to effective marketing and exceptional commercial execution.

However, continued inflationary pressures and currency headwinds are concerning. Higher commodity costs, particularly agave, energy expenses and supply disruptions, have been key headwinds.Accroding report, DEO is on track to deliver on its medium-term guidance for fiscal 2023-2025, wherein it targets organic sales growth of 5-7% and organic operating profit growth of 6-9%.

So far the YTD of $Diageo PLC(DEO)$ is -20.14%.

2.The world's third largest arms dealer $BAE Systems PLC(BAESY)$

$BAE Systems PLC(BAESY)$is market value at $115.0 Bilion , $BAE Systems PLC(BAESF)$ market value at $22.78 Billion, and $BAE SYS.(BA..UK)$ market value at GBX 2.46 Trillion at UK stock Market.

It is a multinational arms industry and aerospace equipment company headquartered in London, England. It is the largest aerospace company and the largest missile manufacturer in the UK, as well as the largest aviation manufacturer in Western Europe.

Source: Photograph: Peter Byrne/PA

Recently, BAE Systems has received a contract from Boeing which the total contract value for EPAWSS production to $351 million; The U.S. Marine Corps has awarded BAE Systems a $88 million contract to build multiple ACV-30 Production Representative Test Vehicles (PRTVs);The company also investing more than $100 million to build a 278,000-square-foot, state-of-the-art research and manufacturing center in southwest Cedar Rapids.It is reported BAE Systems' upcoming dividend in November will be larger than last year's. The next year is set to see EPS grow by 54.0%.

If the dividend continues on this path, the payout ratio could be 39% by next year,

BAESY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.  So far the YTD of$BAE Systems PLC(BAESY)$ is +21.13%.

3. The world's second-largest producer of sugar and baker's yeast:$Associated British Foods plc(ASBFY)$

$Associated British Foods plc(ASBFY)$'s market value at $12.21 Billion, while $ASSOCIATED BRITISH FOODS PLC(ABF.UK)$ 's market value is at GBX 1.06 Trillion,

Founded in 1935, Associated British Foods is headquartered in London, England, with 12,800 full-time employees. It is a multinational food processing and retailing company. Its ingredients division is the world's second-largest producer of sugar and baker's yeast, and a major producer of other ingredients including emulsifiers, enzymes and lactose. Its brands include Ovaltine, Ryvita, Jordans and Downing Tea.

Source: abf.co.uk

Associated British Foods slid 7.6% after it warned of lower profit next year,as its Primark fashion brand contends with worsening costs and increasingly cautious customers who are dealing with an income squeeze, sending shares to nearly a decade low.

The company retained its outlook for the current year ending Sept. 17, with its food business seeing stronger revenue due to higher demand and prices of ingredients.Yannick Frey from Seaking Alpha noted：The UK is heading for a recession and Primark poses a major risk to Associated British Foods. The stock valuation is favorable, but there are better opportunities in the market.

So far the YTD of $Associated British Foods plc(ASBFY)$ is -43.74%.

4. One of the world's largest holiday cruise companies,$Carnival PLC(CUK)$

$Carnival PLC(CUK)$ market value at $11.15Billion; $CARNIVAL PLC(CCL.UK)$ market value at GBX 940.2Billion.

It is a British-American cruise operator with a combined fleet of over 100 vessels across 10 cruise line brands.

A dual-listed company, Carnival is composed of two companies – Panama-incorporated, US-headquartered Carnival Corporation, and UK-based Carnival plc – which function as one entity.

Source: Biletskiy_Evgeniy/iStock via Getty Images

Its financials have improved quite a bit in the first six months of its current financial year. For the six months ending May 31, 2022, Carnival reported revenues of $4,042 million, which is an over 54x increase over the $75 million reported during the same period of 2021.

 Looking ahead, Seeking Alpha's analyst projections show that its numbers for the full year ending Nov. 30, 2022, are expected to improve further. Revenues are expected to be at $13.5 billion, a 7.1% growth over the $1.91 billion revenues seen in 2021.With the worst quite likely over for COVID-19, it appears tempting to buy the stock while it is still way below its pre-pandemic levels. So far the YTD of $Carnival PLC(CUK)$ is -51.49%.

5. One of the top ten hotel groups in the world, $InterContinental Hotels Group PLC(IHG)$ 

Market value at USD10.06 billion & $INTERCONTINENTAL HOTELS GROUP PLC(IHG.UK)$'s market value at GBX 855.0 billion, is a Britishmultinationalhospitality companyheadquartered inDenham, Buckinghamshire, England.

IHG runs 6,029 hotels with 882,897 rooms in more than 100 countries. The company also employs 325,000 people.

Source: https://finchannel.com/

The company announced the opening of its 600th hotel in Greater China recently. As of the first half of 2022, there are 12 IHG brands with expansive footprints in more than 200 cities in Greater China.  By the middle of July 2022, IHG Greater China's RevPAR recovered to over 80% of the same period in 2019.

Deutsche Bank Aktiengesellschaft from GBX 5,700 ($68.87) to GBX 5,525 ($66.76) in a research note issued on Wednesday, JPMorgan Chase & Co. cut IHG shares to a "neutral" rating; Morgan Stanley reissued an "equal weight" ; Royal Bank of Canada reissued an "overweight" ; Berenberg Bank reissued a "buy" rating ; Citigroup reissued a "neutral" rating. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of GBX 5,586.43 ($67.50).

Threat intelligence company Hudon Rock Ltd. said on Twitter recently that at least 15 IHG employees and 4,030 user accounts on the company’s internal network were compromised. The global hotel group has hired the services of external experts to investigate the incident. 

So far this year, the YTD of $InterContinental Hotels Group PLC(IHG)$ is -15.35%.

How do you like the above mentioned companies?

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