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There’s loads of doom and gloom to go round in twenty first century Nice Britain, however one of many undoubted success tales has been that of Greggs (LSE: GRGG). From humble beginnings as a pokey bakery in Newcastle, the chain has expanded to over 2,600 areas throughout the nation. Hungry Brits can’t get sufficient of the moderately priced sausage rolls and baked delicacies. It’s bought to the purpose the place the younger ‘uns have began carrying clothes adorned with the enduring yellow and blue brand. Greggs shares haven’t been neglected of the enjoyable both, as they’re up about 780% occasions in worth for the reason that yr 2000.
What’s subsequent?
Giant language fashions like ChatGPT hadn’t been invented on the flip of the century, however might their digital intelligence have predicted such an increase? Sadly, I’ll by no means discover out.
However the subsequent neatest thing is likely to be to see whether or not it may possibly pick one of many smaller companies on the London Inventory Change in the present day that can comply with in Greggs’ footsteps over the following few years. And as 25 years is kind of once I count on to retire, I wouldn’t thoughts proudly owning just a few shares that go up round 9 occasions in worth till then.
Here’s what I requested:
“What inventory on the London Inventory Change could possibly be the following Greggs?
Standards:
– Listed on the London Inventory Change
– Small with potential to develop like Greggs has accomplished in twenty first century (the shares up round 10 occasions)
– Chance of being a well-loved title, firm and model
– Probability of doing a clothes collaboration with Primark (non-obligatory)”
The outcomes
ChatGPT fired again with an inventory of 5 names that would match the invoice. I’ll embody the next desk because it appeared improper to not share the chatbot’s eagerness to satisfy my joke criterion about Primark.
| Firm | Sector | Key strengths | Potential for Primark collaboration |
| Shoe Zone (LSE: SHOE) | Footwear | Reasonably priced pricing, sturdy UK presence |
Excessive |
| Cake Field (LSE: CBOX) | Meals retail | Distinctive product, fast growth |
Average |
| Card Manufacturing unit (LSE: CARD) | Retail | Worth-driven, intensive retailer community |
Excessive |
| Fevertree (LSE: FEVR) | Drinks | Premium branding, worldwide development |
Low |
| With Nothing Beneath | Style | Sustainable focus, sturdy model improvement |
Excessive (if listed) |
Total, I’d say the listing was fairly spectacular. When recommending inventory picks, language fashions usually serve up simple, apparent solutions. This listing although does give me some meals for thought (pun kind of supposed) – except With Nothing Beneath, which isn’t listed on any inventory alternate.
The title that intrigues me most is drinks mixer producer Fevertree, a model I do know in addition to anybody who goes wherever as of late that has a gin menu. Whereas I’m considerably crestfallen on the low potential for a Primark collab, the inventory ticks lots of the different containers I’m on the lookout for.
A purchase?
With all its merchandise manufactured in Somerset, Fevertree matches the profile of a ‘British success story’. After IPOing in 2014 and fuelled by a current gin craze, the shares flew up over 20 occasions and the market cap surged previous £1bn.
All great things, however have I missed the boat right here? The shares have struggled since, down 72% from their all-time excessive, notably affected by rising power prices which have made producing glass far more costly. With Fevertree’s premium branding requiring glass bottles for its mixers, this elevated provide price is just not a straightforward one to repair.
Altering consumption habits are an additional trigger for concern. Gen Z are well-known to be consuming much less which takes the shine off the long-term outlook for the shares. All in all, an intriguing suggestion, ChatGPT, however not one I really feel is correct for me.
