View more on these topics

Adrian Frost: BP must shrink to boost growth prospects

Artemis fund manager Adrian Frost has called for companies like BP to shrink their assets to improve growth prospects.

Frost says that even on a 20 year view the share price had not done very well and highlighted the success of some of the asset sales following the disaster.

He says: “The premium achieved on some of those sales were 30 per cent to 40 per cent over analyst valuations. I look at BP’s discount to net asset value, at around 40 per cent, and ask whether the share price will get close to NAV again. I would say the answer is no”.

Frost adds: “I like to see big companies shrinking so that what they have left will grow a bit faster. Plenty of companies have a market share as high as they get. If I was to choose sectors that should shrink, it would be consumer goods and pharmas.”

Recommended

1

BoE leaves base rate at 0.5%

The Bank of England bank rate has been held at 0.5 per cent for the 29th month in a row and quantitative easing has been kept at £200bn. The last rate change was on March 5, 2009, when it was reduced from 1 per cent to 0.5 per cent. On the same day, the Bank […]

Protection teams to create needs model

The Protection Review and the Income Protection Task Force are considering developing a protection hierarchy of needs which would set out what types of cover advisers and consumers should prioritise. The organisations are encouraging feedback from advisers and the industry to reach a majority agreement on the protection products that should be offered as a […]

Stock horror

UK equities have continued to fall in popularity as spending cuts and high inflation take their toll on con-sumers and corporates operate against a tough economic background. According to the IMA asset management survey for 2010, which covers the 12 months to December 31, UK equities represented 43 per cent of total equity exposure, down […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com