Easy Money #finance
I suppose most people like easy money, but some people make easy money as executives in an organisation that more or less run themselves. Then there are others that clean our hospitals and keep them clinically clean that need tax credits. They need a big increase in the minimum wage.
The problem is an increase in the minimum wage would give all cleaners a higher wage and that would cut profits for many businesses. Wouldn’t it? Tesco claim an increase in the minimum wage would hit them, but they could just put up prices couldn’t they? Tesco isn’t competitive now against the likes of Aldi. Perhaps they could train their staff like Aldi does and forget big grandiose schemes and private jets and think more about their customers. They could also consider whether their executives are, in fact, paid too much.
Over the past five years, Tesco’s share price hasn’t been lower and so they are hardly serving their shareholders well either. They really need to look at staff training and their business model. Even their accounting seems dodgy, so it’s fair to ask if executive pay is excessive.
Apart from my investment in Tesco taking a dive, most of my investments are down. This appears to be as a result of an economic policy. We need to look at who is running the country as well as who is running Tesco!
The city responded quite well to the ‘Autumn statement’ this week. The lads in the city didn’t panic, which was a relief.
I have to admit to being over exposed in the AIM market. I was hoping Solo Oil would soar, but the long-awaited gas service agreement didn’t get agreed. There was a farm out which will bring in some revenue and I think they did some flow testing at Horse Hill, but the share price is well down. Confidence seems to be lacking, but that can change dramatically. Verona Pharma dropped this week, but investors saw it as an opportunity and started buying. It is up 8% this morning on just three trades. Imagine what a bit of good news could do.
All my stocks on the AIM market were research and could soar at any time. That could be easy money! Some pundits are even saying Monitise could come back from the dead. The shares are definitely cheap now and I’m surprised that the posh boys in the city haven’t at least snapped a few up.
Across the water in the US brokers have been very positive about Premier Foods. It is still a big company that has new products that are coming into the market. The directors bought their shares at an average of 81p. I think they intend to make a profit on them. The price today is just 39.75. I expect that to double by next summer.
I have my eye on Lloyds Bank again, but should I wait for the IPO? I understand the deal will be 10% off the prevailing market price. That’s not to be sneezed at.
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