London Isn't Dying — It's On Sale. Here's Where To Look
UK stocks are being taken private at a record pace: this year, takeover bids for London-listed companies have run at roughly £60bn against under £600m raised in new IPOs, and Neil Woodford argues that this wave of M&A is the clearest sign in years that UK equities are undervalued. In this episode, Woodford and Jon Adair break down why the FTSE and London stock market trade at such a deep discount to the US, what a 75% takeover premium reveals about UK share prices, whether British stocks are cheap or a value trap, and where Woodford sees value across UK banks, oil and housebuilders.
For every £1 raised by a new company listing in London this year, buyers have spent £27 taking existing companies private. Look at the actual cash changing hands and Neil Woodford thinks it is closer to 100 to 1. The headlines call this the death of the London market. Neil argues it is the clearest sign in years that UK companies are badly mispriced.
This week: why nearly £60bn is leaving London for cash while under £600m has been raised in new listings, what a takeover premium of 75% tells you when the long-run norm was closer to 25%, and why Neil says you should never buy a business hoping it gets taken over.
We also get into how the UK got this cheap after two decades of domestic pension money walking away, how it stacks up against a US market trading at 42 times cyclically adjusted earnings, whether this is a real opportunity or a value trap that never closes, what an incoming government could change, and the sectors where Neil sees the widest discounts.
For every £1 raised by a new company listing in London this year, buyers have spent £27 taking existing companies private. Look at the actual cash changing hands and Neil Woodford thinks it is closer to 100 to 1. The headlines call this the death of the London market. Neil argues it is the clearest sign in years that UK companies are badly mispriced.
This week: why nearly £60bn is leaving London for cash while under £600m has been raised in new listings, what a takeover premium of 75% tells you when the long-run norm was closer to 25%, and why Neil says you should never buy a business hoping it gets taken over.
We also get into how the UK got this cheap after two decades of domestic pension money walking away, how it stacks up against a US market trading at 42 times cyclically adjusted earnings, whether this is a real opportunity or a value trap that never closes, what an incoming government could change, and the sectors where Neil sees the widest discounts.