Investments | Premier Foods PLC (PFD.L)

Investing in the stock market now is risky, share prices are bouncing around. The agreement reached on Thursday to stabilise the Eurozone crisis sent shares in Barclay’s up 17.58%; quite a jump. I didn’t benefit from that unfortunately! I was watching Premier Foods and wanted to buy at 4p.

I was dealing online and had problems with the website, I also didn’t receive an alert for some reason when it hit my target price. It all worked out, I bought at a slightly lower price. Is it a good investment? How long is a piece of string?

The company makes processed foods and many famous names like Bachelor’s soups, Bird’s custard, Sharwood’s  sauces, Saxa salt, Sarson’s vinegar, Hartley’s jam, Homepride, Hovis, Paxo, Robinson’s, Rose’s, Branston (yummy!), Loyd Grossman, Angel Delight, Ambrosia, Lyon’s and many more famous brands. I do admit though, that many of these brands were more famous when I was a child! The current CEO joined the company from Kraft and is trying to restructure and reduce debts. I hope marketing can be improved too, because some of these brands are not as well known as they used to be. I think the company could find new export opportunities too.

The share price has dropped since a high of 35p in May this year. The price was over £3.00 in 2008 and has dropped ever since. Will it recover? I don’t know. Investing is a long term thing for sensible people, although I saw some automatic sells at 4p this week and some small investors buying at that price. Analysts were predicting it would go to about 11p in the next year. Recent advice from one analyst was it could half in price and so the advice was sell. This could be why I got my target price. We will have to see what happens. I would be happy to see it go to 11p in the next year. If it went back up to £3.00, I would be ecstatic!

This is not investment advice; investments carry serious risks to your money. I promised to tell readers when I bought shares, this is information only. I tend to not follow the herd and do the opposite of what everyone else is doing; this could make lots of money, it could lose lots of money!

I had to write this on Friday, for publication on Saturday, the price has gone up a tiny bit at the time of writing; better than it going down! I will be monitoring other prices and have targets on other shares. I did miss one I was interested in, because the money I was expecting was delayed. The price has since gone up 25%; not to worry…

There are more blogs on the Home Page.

 

Related articles

• Premier Foods warns on full-year profits (telegraph.co.uk)

Advertisement