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Whitbread gets the boot
- Created:
- 21 May 2008
- Written by:
- Jonathan Eley
Robert Tchenguiz might be building up a stake in Whitbread, but when it comes to intuitive appeal among Investors Chronicle readers, the pubs-and-hotels group just doesn't cut it. At the end of the first round of voting, Whitbread has been voted off - polling almost a third more votes than any other contender.
A key reason for its ejection seems to have been its perceived exposure to lower consumer spending, via its Costa Coffee and Travelodge brands. That's a classic 'gut reaction', which was what the first test was all about. Many of the other companies in the list have, at first glance, better defensive characteristics. We'd point out that BAE's problems with US lawmakers only came to light towards the end of the voting period.
But as we pointed out last week, intuition can often be wrong - and our subsequent tests are designed to weed out other companies that talk the talk, but can't walk the walk.