This article discusses the increasing importance of intangible assets over tangible or physical assets and explains how investors can exploit them to uncover great businesses.One of the iron-clad laws of economics is that high returns on capital are eroded over time by the effects of competition. Reversion to the mean or average is almost as inevitable as death and taxes for most companies.Famed i

London's FTSE 100 topped the 8,000 point mark for the first-time on Wednesday, during strong afternoon trading for European equities, though investors in New York still had inflationary worries on their minds.A weaker pound, in the wake of cooling UK inflation, bolstered the blue-chip index's international earners, as well as its retail sector. Hopes that an end to Bank of England rate hikes are o

How can I really know if an investment is legitimate or not? What checks can someone do to reduce the risk of being taken in by a scammer?EmmaTom Selby, AJ Bell Senior Analyst says:Financial scams are depressingly common and often target people's hard-earned pensions. This has particularly been the case since 2015, when government reforms gave savers total freedom and choice over what they do with

Low interest rates have fired appetite for income from equities and a big proportion of this demand has been satisfied by funds. So how is it that some funds can yield 7% or 8% when the Investment Association Equity Income sector average yield is 4%?The answer is derivative trading, selling options on some of their holdings, otherwise known as an overlay of 'covered call options'.The downside of u

Specialist publishing and events firm Informa (INF) is getting the thumbs down from the market on its £9bn combination with rival UBM (UBM).Confirming a proposed combination, UBM is up 13.4% to 891.5p while Informa falls 8.4% to 684.6p.Investec analyst Steve Liechti spells out what Informa is paying to secure the deal.'At 747p, this implies a price of 972p (+30% premium vs undisturbed)... this i

UK stock markets open largely flat on a typically quiet news Friday, the FTSE 100 index virtually unchanged in early deals from Thursday's 7,278 close.Thin company news is led by speciality plastics and packaging components specialist Essentra (ESNT). It posts a 26% slump in full year adjusted pre-tax profit as sales flag at its health and personal care packaging unit. Integration issues around it

Media group UBM (UBM) ticks up 0.6% to 713.5p as it announces the acquisition of privately owned Asian exhibitions portfolio Allword Exhibitions for $485m.EVENTS FIRSTThis is the latest step in an 'Events First' strategy which has focused the business on the traditionally high margin and cash generative events space.The deal is expected to be immediately earnings enhancing and will be funded by de

Investors on the lookout for bombed out opportunities should check out industrial distributor Essentra (ESNT) after a mild profit warning triggered a 20% share price slump.Essentra's share price tumbled on Monday 21 November as operating profit guidance was reduced by around £20m to between £137m and £142m, taking year-to-date share price losses to more than 50%.While we have been bullish on th

London's FTSE 100 opens 21.4 points higher at 6,797.2 on Monday, recovering from last Friday's declines thanks to overnight gains by Asian stocks as oil prices bounced higher, with all eyes this week on the Autumn Statement and Federal Reserve meeting minutes.Industrial distributor Essentra (ESNT) extends year-to-date losses to above 50%, losing 20% of its market value this morning, as operating p

Industrial conglomerate Essentra (ESNT) names Coats' (COA) chief executive Paul Forman as the man to turn around its fortunes following a botched acquisition spree.Forman oversaw the transition of asset manager Guinness Peat into a standalone entity, Coats, via the disposal of a variety of investments and other non-core assets.A similar challenge may await at Essentra as the new chief executive lo

Markets look set to end the week flat as a busy few days for corporate results provides no seriously nasty surprises.Blue chip stocks in London trade 0.1% higher in early deals at 6,730 despite modest gains in sterling overnight against the dollar.Key features of a mixed Friday trading session include two profit warnings and a couple of takeover attempts in the commodities sector.Industrial distri

London's blue chip stocks add another 1.3% to a near-6% rally week-to-date as votes are cast in Britain's referendum on EU membership.Sterling trades at its highest level against the dollar in 2016, buying $1.4819.Real-money prediction markets as well as polling analysis provided by Bloomberg's Brexit Tracker put the odds of a vote to leave at little over 25% after a big swing in favour of 'Remain

Essentra (ESNT) 541.5pLoss to date: -20% (stopped out)Original entry price: 763p, 1 Oct 2015An unscheduled trading update (9 Jun) at packaging products supplier Essentra (ESNT) sent shares into freefall. Our 20% stop loss has been triggered and therefore our Plays trade comes toan end.Now trading almost 50% lower than in early 2015, when it had agreed to buy packaging unit Clondalkin from private

Essentra?s (ESNT) struggling oil and gas-focused Pipe Protection Technology (PPT) division is not for sale - and if it was chief executive Colin Day says he would be first in line to buy it.A steep decline in oil and gas drilling activity in 2015 led to a 65% slump in sales at the unit, which sells specialist seals used to protect drill pipes from damage and corrosion.But Day, speaking alongside f

Fancy owning shares in a company that stands a good chance of being in the FTSE 100 within the next five years? Backing the next blue chip sounds very enticing and predicting the companies is not as unrealistic as one might imagine.Three companies will join the FTSE 100 index as part of the latest quarterly reshuffle. Recent IPO and payment processing play Worldpay (WPG), specialist lender Provide

High quality stocks are rarely available at bargain prices but components supplier Essentra (ESNT) may well be an exception.While shares in the industrial parts supplier have sold off in the stock market panic of recent months they are still up a little over 6% year-to-date including dividends.Essentra's leading positions in niche markets should help drive financial performance whatever the weathe

Many bankers kept a low profile when the financial crisis hit. Not Phillip Monks. He saw an ideal opportunity to start a bank and today he is boss of Aldermore (ALD).'When I met some private equity houses Lehmans was crashing around our ankles and I could hear the laughter as I left. "Look what is happening out there, Phillip and you want to start a bank? Are you nuts?" they said.'Monks saw a lack

UK stocks snap a five-day winning streak on Wednesday that had sparked the FTSE 100 to a six-week high, as investors turn cautious over a swathe of corporate earnings and await the Bank of England's (BoE) Inflation Report. News of massive fines across the UK banking sector also drag on the Footsie. The benchmark FTSE 100 index drifts 26 points lower to 6,601, having closed at 6,627.4 on Tuesday, i

City regulator the Financial Conduct Authority (FCA) has warned about two institutions using details of authorised operators to con people into dealing with them.The duo are Knightsbridge Management International Asset Management and Rimas Risk Management Service. Fraudsters usually use this tactic when contacting people out of the blue and it always pays to be particularly wary of any cold caller

Aberdeen Asset Management (ADN) rises 5.1% to 410.1p despite two negative bits of news. It will have to payan additional £39.4 million for its purchase of Scottish Widows' fund management arm, costing £550 million in total. A trading update also shows a £3.6 billion net outflow of equity funds in the first two months of 2014. The market appears to be applauding plans to cut costs.Glasgow engine