From beer to jet fuel

Today’s trade in Obliquity London is swapping SAB Miller for Rolls Royce. The brewer got taken over and I don’t like it much for both fundamental reasons — big takeover tends to be underwhelming, and AB InDev’s management style is a bit too Ryanair-style for my taste — and practical — the new company won’t be London-listed.

Rolls Royce, the engine manufacturer, had been on the watch list for a while. It’s a pretty steady stock which is currently seen as more distressed than it really is in my view, and today’s profit warning may provide an interesting entry point.

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