Disappointing updates from SAP and IBM hit shares, while crude price slides again
A fall in oil and technology shares sent leading shares lower again after an early attempt at a rally fizzled out.
With continuing worries about the state of the global economy, crude prices slipped further with Brent down another 1.65% to $84.74 a barrel.
Sears refers in its statement to its on-going transformation to one of the largest real estate portfolios in the US over time. It is progressively moving from retailer to landlord.
To put this in context Sears has over 2,000 stores in the US and can offer a huge amount of floor space to any would-be tenant. Teaming up with ABF/Primark would seem to open enormous possibilities down the line should Primarks foray in to the North East prove a success and a springboard into the rest of the US.
Well, it looks as if Tesco will keep their powder dry on Thursday on the UK turnaround strategy and play down any rights issue plans, so will that tempt Sainsbury to have a rights issue on the back of its interims/strategy update on 12 November?
bwin.partys capacity to pull itself up by its bootstraps could be just the investment case that investors are looking for in these turbulent markets. After years of frustration and disappointment there is bound to be scepticism, but the third quarter update showed signs of green shoots. Product upgrades are being developed and delivered more quickly, supporting growth where it matters, in sports, and in nationally regulated and/or taxed markets.
We can see the attractions of giving priority to breaking up the group. However, maximising value depends on negotiating from a position of strength and recent management actions may be providing that strength. We believe the shares are priced for a continuation of the status quo. The most recent trading data however, suggests that things are beginning to change.