Enterprise Inns - "Value" or "Growth" stock?

Hi Ian,

"intelligent life forms" aboard the Enterprise? "but not as we know it" Ian ;o)

I have been away for a few weeks and not following the markets on a daily basis so not sure if I have missed something that has caused the very pleasant and ongoing price uplift but to me it seems to simply be a sector re-rating at the moment.

The REITs were mentioned at the end of an article I posted a few weeks ago so maybe someone has picked up something new and positive coming in January but I am not aware of what that could be.

Even if "the air is getting a bit thin" I would not worry as you should be used to going into orbit at the end of each year having been on board the good ship Enterprise for some time. In fact the only thing that worries me at the moment is that we have seen a similar trend at the end of the last few years only to dip back and track sideways during the first half of the New Year.

If we are a bit high we certainly have company. I had a quick look at the charts comparing us to the main competitors and we simply seem to be in the middle on both a short term (6 months) and medium term (3 years) basis. For some reason I cannot get a longer term chart from ADVFN today.

Given our P/E of 13.4 against 18.5 for M&B, 13.5 for Punch, 18.8 for Greene King, 28.8 for Wetherspoon and 19.5 for Wolverhampton & Dudley our price could even be considered to be somewhat low on a comparative basis. (Maybe some of the differences are explained by the different year ends?). Also, our yield at only 2.0% is only bettered by W&D of the above.

Perhaps it is just that safe "cash cows" are back in vogue.

Remember I have only been aboard for 6 months (+50% thank you very much) so I am far from being an expert here. With your longer term holdings you must be checking out tax h(e)avens at the moment.

6 months