My interest in investing in them has strengthened this week as the company has made the news, with the potential sale of its primary products division in order to concentrate on its food and beverage solutions.

In effect it’s moving away from sweeteners such as corn syrup, to more health-conscious ingredients that replace sugars.

It’s a move in line with shifting tastes, making the business more competitive, as the consumer is more aware of the dangers of too much sugar, such as type 2 diabetes.

This why its share price should remain a bullish FTSE 250 investment for now.

Its shares accelerated by c.6% soon after the news of the potential restructuring broke on April 26. Yet Tate and Lyle’s stock price has seen an impressive climb of c.30% over the past six months.

The group’s trading statement confirmed an 8% rise in revenue, for the three months up to December 31.

Additionally, a rise in profits up to the end of March for the year is expected, partly due to increased momentum in its food and beverage solutions.

Greencore another FTSE 250 opportunity

Convenience food producer Greencore (LSE:GNC) is another FTSE 250 investment I am keen on in this sector.

This is despite a predictably difficult year due to the pandemic, as the food-to-go market has declined due to lockdown.

Greencore has been hurt as it supplies its products, which range from salads to sushi, to convenience retailers such as coffee shops, and travel related outlets.

Its trading statement revealed that food-to-go business has decreased by 21.7%, for the 13 weeks up to Christmas Day last year.

However, the stock has climbed this year, after falling to 90p per share after the second lockdown began in November.

And this comes as no surprise, as the food-to-go market should grow again this year with lockdown easing.

Analysts Lumina Intelligence has forecast growth of c.32% during 2021, and that the UK food-to-go market will increase in value by £7.3 billion over the next three years.

It’s a market that should remain bullish, providing me with a timely investment – unless there are major setbacks to lockdown easing, such as a dangerous Covid-19 variant.

It’s not all cheer for food producers

One FTSE 250 investment I am less enthused about is in meat provider Cranswick (LSE: CWK), even though, due to increased home consumption, the company produced a resilient response to the pandemic.

Its share price has been very up and down over the past year. Looking ahead, even though meat processing is expected to expand, there are several patterns that are expected to slow down the growth of meat processing.

The pandemic has resulted in the closure of many high-street meat-serving outlets, with damage being caused to many businesses even if they still remain open.

Additionally the popularity of vegetarianism and vegan diets are a threat to sales of meat in the short and longer term.

In contrast, Tate and Lyle and Greencore focus on several markets that are set to develop, which makes them better options to dish up a sound FTSE 250 investment.

The post Which FTSE 250 food producer stock will serve up a sound investment? appeared first on The Twelfth Magpie.

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Peter Taberner has no position in any of the shares mentioned. The Motley Fool UK has recommended Greencore. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The group has 48 pubs dotted around the south and east of England. If they do not have a beer garden, from May 17 pubs can begin serving pints again indoors.

Most of its outlets are in good locations to entice domestic tourists, especially in areas of Central London like Covent Garden.

Other pubs are situated on the coast like in Brighton, or in cultural hotspots such as Oxford.

Visit Britain has forecast an uptick in spending of 79% on ‘staycations’ compared to last year reaching £67.1 billion. While this is only 67% of the outlay on domestic tourism in 2019, the expected increase in footfall ought to be beneficial to City Pub Group outlets.

After the first lockdown last year, its watering holes performed well (the Norfolk based pub The Hoste being one example to benefit from tourists).

The group’s trading statement released in January revealed how badly the pandemic hit them, as revenue was down from £60 million in 2019 to £25.7 million last year.

Yet there are positives in the way which the group has reacted to Covid-19 headwinds.

Staff retention is high with all but eight staff having been furloughed, and costs at head office and all other venues have been reduced.

Compromises have been reached with landlords, where minimal rent costs have been agreed, and rent concessions have been negotiated throughout the lockdown period.

An equity fundraise was sanctioned by the group, just as coronavirus arrived in the UK in March 2020. A total of £22 million was raised, with £10 million allocated to reduce bank borrowings.

The group placing itself on solid financial ground during the pandemic, allied with lockdown easing and a successful vaccine roll-out, is why I am interested in investing in City Pub Group shares.

Pub shares march upwards

Currently its typical that shares in pub companies have increased hugely since last autumn when prices were low.

City Pub Group shares increased from a nadir of 53p in November, rising to 144p in February, and since then have been no lower than 122p per share.

Competitors such as Revolution Bars Group and Whitbread have also experienced a similar share price trajectory, despite broadly deteriorating liquidity positions in the sector.

During the summer, I believe City Pub Group shares should continue to rise as pubs open indoors, perhaps reaching pre-pandemic levels.

Yet it’s doubtful to me whether they can double again in the next six months, as winter approaches, and the pub bubble begins to burst…

Social distancing rule is key

All social distancing restrictions could be lifted on June 21, which would be a huge tonic to the pub industry.

Events such as the World Snooker Championships and music’s prize night, the Brit Awards, are being played out at near and full capacity with no social distancing.

This suggests that the government is serious over ending the two-metre rule.

Yet scientists are wary over this inviting further surges of infections, by ending social distancing.

And vaccine ‘passports’ to enter a pub is a contentious issue for the industry, potentially discriminating between age groups.

Whether pubs can operate at full capacity any time soon remains uncertain.

The post Will City Pub Group shares double again in the next 6 months? appeared first on The Twelfth Magpie.

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Peter Taberner has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Its latest trading statement might have revealed a first-half year loss ranging between £690 to £730 million, but this was below expectations. 

A strong grip on cost cutting was achieved by cash-generative flying over the quiet winter period, and capacity forecasting also contributed to lower cash burn.

Additionally a surer financial footing has also been reached by raising £5.5 billion since the pandemic, resulting in easy access to £2.9 billion in funds.

In the current pandemic climate, it can’t come as a surprise that passenger numbers fell by 89%, with group revenue spiralling down by c.90% to around £235 million.

Yet despite the crippling conditions for all airlines over the past year, easyJet stock has still impressively climbed upwards by c.45%.

But the share price is still way below pre-pandemic peaks, suggesting room for further price growth.

Reasons to be optimistic

From May onwards many countries are likely to open up to travel, with restrictions in place with regard to transporting Covid-19 variants.

Across the EU a ‘vaccine passport’ system conceived by the European Commission is now at a more advanced stage. The hope is that a certification process will be in action by the summer.

The aim is to provide evidence that travellers have been vaccinated, or have either tested negative or have fully recovered from a Covid-19 infection, allowing them to board a plane for that much-yearned-for sunshine break.

While in the UK, its Global Travel Task Force is looking to adopt a ‘traffic light’ system, based on the risk involved in travelling to a country, alongside a certification process.

Outside of a few longer-haul routes to North Africa, such as Tunisia and Israel, all of easyJet’s flights are all around Europe.

The moving forward of legislations are a clear sign of foresight on getting the travel industry going again, boosting market confidence, which is why I am looking to invest in easyJet stock.

easyJet itself is optimistic, and it forecasts flying at 20% of capacity levels in Q3 compared to a year ago, with footfall increasing from May onwards.

Hurdles still to clear

It’s an unclear picture just how realistic that a functioning travel system can be achieved this summer, as coronavirus cases remain high across many parts of Europe.

New and dangerous variants of Covid-19 are a lingering threat.

France announced new lockdown measures only as far back as March 31, while Germany and Italy are also currently dealing with a high level of Covid-19 infections.

It’s a mixed bag for other typical holiday destinations. Spain have cases under control, as opposed to Greece who are experiencing a relative spike in positive cases since February.

Also, the vaccination programme in many European countries has been relatively far slower, in comparison to the UK and Israel.

Yet vaccine logistical problems seem to be clearing, as jab rates are increasing in most EU members.

Doubts over the AstraZeneca vaccine, and the delay of the Johnson & Johnson roll-out in Europe over potential rare blood clots, are a further concern in reaching some kind of stability.

The post Why easyJet stock could now soar after H1 results appeared first on The Twelfth Magpie.

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Peter Taberner has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The office being temporarily replaced by home working has led to an increase of independent exercise, and demand for sportswear.

Alongside online trading, this has enabled JD Sports to overcome many of the trading headwinds created by the coronavirus pandemic, and lockdowns around the world.

Ties and that ‘big night out’ wear have been swapped for trainers and ‘athleisure’ products.

The latest share price to earnings ratio is 26, and recent acquisitions to the group increase its chances of growth and value for this year and beyond, I believe presenting me with a timely opportunity for investment in JD Sports shares.

Why I’m bullish

Recently a $495 million deal was completed to take over DLTR Villa, which operates 247 stores across the United States, under the Sneaker Villa and DLTR brands.

It’s a deal that will expand JD Sports’ presence stateside, following its M&A activity buying sportswear retailers Finish Line in March 2018, which at the time had outlets in 44 states.

The deal contributed to a significant rise in JD’s share price throughout 2019 before being halted by the pandemic.

Over the past three years, its share price has accelerated by a huge 144%. And the retailer’s total revenue jumped from £4.7 million in 2019 to £6.1 million last year.

Additionally, the group’s European footprint was extended by the purchase of the Poland-based Marketing Investment Group, which sells several ranges of sportswear fashion.

In another positive move, a 65,000 square feet warehouse has been opened by the group in Ireland to clear trade hurdles caused by Brexit, as tariffs are now incurred distributing goods imported from Asia to Europe from the UK.

Growth forecasts for this year are optimistic, too, with a 5-10% predicted pre-tax profit for the 2021/22 financial year in the latest trading statement released in January.

Despite the continued frustration of temporary store closures in a global scale, demand remained robust in the second half of this year.

Group profits are anticipated to be £400 million up to January this year, climbing above current market expectations, which average £295 million.

No wonder then that the group retained 90% of its sales in the opening six months of last year.

This was largely due to mature online markets for the group’s outlets in Northern Europe and the United States, which is widely perceived as having the most advanced online trading market in the world.

Analyst McKinsey anticipates that the pandemic will continue to have a long lasting impact for sporting goods chains.

Digital commerce is an obvious change, but it expects demand for products that suit outdoor individual sports, and home exercise to increase this year.

Potential risks to monitor

Yet challenges could arrive from uncertainly over sports participation indoors and over team sports, factoring in potential Covid-19 infection waves and a slow vaccine roll-out in some countries.

The direct-to-consumer market is also estimated to have accelerated during the pandemic.

However, the group has a healthily relationship with brands such as Adidas and Nike, which should result in a sizeable allocation of their products to sell online and at its stores for now.

The post Why JD Sports shares are on my watch list appeared first on The Twelfth Magpie.

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Peter Taberner does not own any shares in JD Sports. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.