I have written about Young & Co Brewery before. The share price has slipped back 14% from recent highs and I feel is in buying territory again. Therefore I was pleased to see continued good Xmas trading from managed pub competitor Fuller, Smith & Turner.

Fulllers 43 wk trading statement, which captures Xmas trading, showed managed pub LFLs up 5.3%. At the 26 week stage this was 5.6%, implying +4 8% for the last 17 weeks. So it's a small slowdown from the H1, but unlike retailers which had a poor Christmas due to more internet competition, the pub's trade can't go online.

The main Risk for Young's in the short term is Brexit which would be bad for London and its financial services sector. Having said that the business model would not cease to exist, rather I think trading would be subdued for a while.

Valuation at Youngs for the Non Voters is under 14x PE, with a dividend yield of 2.6% (covered 3x), c1x Tangible net asset value and a StockRank of 84. All very appealing.

Here is my initial write up

Happy investing


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