Rational Statement Unilever&Tesco Plc

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Draft Rationale Statement.

Raven Investment Consultants has selected two stocks that would be excellent additions to your investment portfolio. Firstly we recommend Unilever a multinational food company, which has known growth in both revenue and volume in the third quarter thanks to strong demand from emerging markets, respectively a sales growth of 6 percent and a volume growth of 3.4 percent. The stock was the strongest climber on the Amsterdam Exchange Index. These results are largely due to success on emerging markets in the Home Care and Personal Care segments. There was however a slight loss of 0.4 percent for the Foods division which is more active in Europe and America, but in the past 9 months the division has grown for 2 percent, so this result is to be minimized. We expect that the stock will upkeep its performance and a profit between 3 and 4 percent per share.

Secondly, we recommend Tesco PLC a multinational grocery retailer, despite the recent relapse; it’s a share to watch. Tesco has recently invested one billion pounds in their British stores, hiring new employees, cutting the prices and supply a larger array of foods. Their strategy is to win back their share of the market in Britain and to keep up their position their foreign markets, aiming at a long-term sustained growth. As a result their revenue has slightly grown for 0.1 percent. Tesco’s online stores are also gaining success in several countries, and won the World Retail Award for virtual stores. We expect the problems for Tesco will soon be over and we foresee steady improvement. We advise to buy the shares now that they are low priced.
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