Month: March 2018

Stock Watch: Domino’s Pizza

Domino’s Pizza is a very good business. It has exploited the trend of the growth in take-away pizza superbly and now has a 46% share of the UK’s £2.1 billion pizza market. For many years it has been able to grow its sales and profits whilst producing high profit margins, high returns on capital employed […]

Checking out a company’s cash conversion

A couple of weeks ago I wrote about the issues investors faced in working out a company’s true profits. In many cases, the ways in which companies calculate their so-called adjusted profits are becoming increasingly absurd. Investors are frequently asked to ignore certain real costs so that profits are as big as possible. The harsh […]

Stock Watch: Hollywood Bowl

Hollywood Bowl is the UK’s largest operator of tenpin bowling centres. It currently has 58 centres across the UK with 43 trading under the Hollywood Bowl brand, 4 as Bowlplex and 11 as AMF. In total, these centres have 1,390 bowling lanes. The average size of each centre is around 30,000 square feet with 24 […]

Can you trust a company’s profits?

This article is more suited to experienced investors. Profits are all important when it comes to investing in companies. To make money over the long haul it usually helps to invest in a company that is growing its profits. The more profitable a company is, the more valuable its shares tend to be. However, profits […]