Despite this growing trend for web-based news access, The Daily Mail and General Trust (LSE: DMGT) has managed to maintain a healthy market cap of $2.82 billion. With investment advocates including Nick Train vocal about the potential of the firm, can DMGT maintain its stability in the face of a decline in paper popularity?

Longevity indicates security

With most organisations, the very fact of achieving decades of solid trading usually indicates that the brand has the ability to weather evolving trends and changing consumer appetites. Established in 1922, DMGT has certainly proven the ability to adapt and transform according to consumer appetite and demand.

The Daily Mail has successfully navigated the potential pitfalls of migrating to an online environment, leaving many of its competitors behind in terms of level of popularity among readers. Unlike many others such as The Guardian, The Daily Mail has not yet been required to request additional funding from its readership in order to compensate for dwindling paper purchases.

This indicates a strong recognition of the preferences of its consumers, in terms of the ability to perceive fluctuating trends and evolve proactively to meet evolving demand. Through extensive advertising and a fast-moving turnover of articles, coupled with celebrity figures contributing to articles and opinion pieces, The Daily Mail has effectively maintained a string revenue stream despite the reduction in physical sales of the paper.

A strong global market player

Significantly, the firm also benefits from a significant presence globally, through its subsidiary DMG World Events and DMG Information, which affords additional financial security should UK appetites change and consumer habits impact revenue. The firm has a broad product base, operating in data analytics, information and entertainment.

This offers a diverse reach that enables DMGT to accommodate a broad readership and strengthen its overall foothold in the market. This is crucial for future growth, as more and more UK news readers migrate to a paperless environment and adjust their appetites to access information digitally.

As a result, DMGT looks like a strong prospect for future investment, meriting the faith that key investment figures such as Nick Train have placed in the firm. Through an insightful evolution, DMGT appears ideally placed to prosper into the next decade as a long-term stable investment.

The post Why I think Britain’s Warren Buffett is right to be bullish about this stock appeared first on The Motley Fool UK.

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Jen 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.

A powerful brand – but is it stable?

Carnival boasts New York Stock Exchange, Standard & Poor’s 500 and FTSE 100 footholds. Over the past few years, the firm has been steady overall despite a few minor dips. However, external pressures to the sector have impacted Carnival’s net income, evidenced through the dwindling earnings per share rates.

Alongside its two main sector competitors (Royal Caribbean Cruises and Norwegian Cruise Line Holdings) Carnival dominates approximately 80% of the global cruise industry. In terms of market share, with over 100 ships, Carnival has double the resources of any other sector competitor!

External influences may hinder sector growth

Currently, many firms in ‘luxury’ sectors are feeling the pinch as the UK consumer base tightens the reins on spending as Brexit negotiations continue. Uncertainty around economic stability often sees firms specialising in luxury items such as foreign travel taking a hit as consumers wait for circumstances to stabilise.

Carnival may also be concerned about increased fuel prices, which may see its cruise offers provide less value for money for discerning UK consumers.

The plus side of economic uncertainty

Despite increasing pressure on the sector due to political and economic uncertainty, low-cost holidays and low-end luxury products from trusted providers should continue to be popular. This bodes well for Carnival, who may see its profits increase rather than diminish as a direct result of the economic climate.

Capitalising on nationwide uncertainty through a safe brand

When the economy is depressed, UK holidaymakers tend to opt for more secure ways to invest in leisure, and an organisation that has been around since the 70s will hold more attraction than less powerful brands. Similarly, the sheer size of Carnival means that if one product revenue stream falters, it has sufficient net operating cash flow overall to keep the boat steady until it can turn it around and continue to profit.

There is significant room for growth with Carnival, and investors may be well placed to consider the stock. The brand may prove lucrative and stable, given its market dominance, expanding operations and expectations of improved earnings going forward.

There is significant room for growth with Carnival, and investors may be well placed to consider the stock. The brand may prove lucrative and stable, given its market dominance, expanding operations and expectations of improved earnings going forward.

Despite stiff competition, the firm continues to enjoy a market-leading position, and the current uncertainties across the broader UK economy surrounding Brexit is a prime motivator for me to buy into CCL. The firm has the potential to hang on in there when less powerful sector competitors capsize, leaving shareholders cruising ahead with some solid shares in their portfolio.

The post Why I don’t think the Carnival is over for this UK travel & leisure stock! appeared first on The Motley Fool UK.

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• More oil wobbles as the BP share price dives 7% in a day!
• Meet the 9.6%-yielding income share that could keep growing its payout!
• When will Barclays shares hit £10?
• easyJet shares have bounced back before. On a P/E ratio of 6, could they do it again?
• Could National Grid shares offer me a dividend that won’t be hurt by inflation?

Jen Syrkiewicz has no position in any of the shares mentioned. The Motley Fool UK has recommended Carnival. 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.

In Q2 of this year, the FTSE 100 was boosted by the strength of the shares in utilities, where market uncertainties left many other sectors falling in value.

However, Royal Dutch Shell’s (LSE: RDSB) acquisition of First Utility in December last year was met with enthusiasm by investors seeking to purchase utilities shares without relying on the major six market players in the UK to enter the sector.

Initially, Shell’s acquisition promised enhanced profits and a greater market share nationally, building on the 825,000 homes served by First Utility at the time for their gas, electricity and broadband provision.

Big promises

Following the acquisition, First Utility’s directorate were immensely positive about their future market capture, making claims that the organisation was now in prime position to begin capturing a corner of the market.

However, enthusiasm was dampened as we saw the collapse of regional supplier Future Energy at the beginning of 2018, prompting strong debate as to the profitability of the UK’s household energy market.

Wholesale prices spiked, and gas & electricity provider Brighter World Energy soon followed Future Energy and folded. For a while, it seemed that even backing by a powerhouse such as Shell couldn’t provide First Utility with the resources required to compete with the big players such as npower and E.ON.

Market fluctuation in energy prices went on to see First Utility register a FY16 pre-tax loss of £12.7m, leaving many investors doubting whether the firm could regroup and return to profitability; however, in FY17 First Direct recorded a pre-tax profit of £29m.

An uncertain start stabilises

Against the odds, Shell’s acquisition has seen First Utility begin to make a profit once more, despite the ongoing market uncertainty and fierce competition from bigger players.

Brexit uncertainty and slowed economic growth could enhance dividend yields, despite First Utility failing to deliver on anticipated market share to compete with the big six power firms. This is why I feel confident that Shell’s acquisition could still be a savvy step for the firm.

Minor setbacks have still shaken the stability of the firm, with recent criticism from Ofgem relating to the organisation’s poor complaints management, further undermining investor confidence.

However, I suspect Royal Dutch Shell is still a positive prospect for long-term investment, as First Utility benefits from Shell’s acquisition and expertise. This could be a sensible investment, as Shell seeks to capitalise on the positive reception for industry contenders capable of challenging the ‘big six’ utilities market leaders.

The post Why I think this jewel in Royal Dutch Shell’s crown makes it a buy today appeared first on The Motley Fool UK.

More reading

• More oil wobbles as the BP share price dives 7% in a day!
• Meet the 9.6%-yielding income share that could keep growing its payout!
• When will Barclays shares hit £10?
• easyJet shares have bounced back before. On a P/E ratio of 6, could they do it again?
• Could National Grid shares offer me a dividend that won’t be hurt by inflation?

Jen Syrkiewicz 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.