Post good numbers this morning this has become a re rating story. Telcos are a good place and especially Orange. They have a European focus which is clearly the region currently outperforming economically. Incrementally, French data is turning. In a continued low rate environment they provide attractive yields, and the CFO said on the conf…
The bad news is out there now for SKF. The organic number was much worse than even the whisper number, and the weakness was broad based across divisions. The mid single digit downgrades are now out there and in the price. The next thing we have is the CMD in November. The new CEO has…
Europe looks ok but the rest pony by looks of it. Record tourist numbers this summer so maybe not a surprise. Will that continue into winter? USA is a major problem as has been a bright spot recently. We are happy to stay short Swatch. UPDATE: SWATCH STAY SHORT Thursday • 05 February 2015…
Following the FT headline yesterday : EU Competition Probe Targets Aircraft Components, Service. The spread tightened and Safran suffered. We spoke to Safran’s IR last night for more clarification: At this stage this is just an informal inquiry by the EU Commission. Safran is in the process of answering the questionnaire, and according to the…
SAB agree in principle to 4400p in cash from ABI BB. Subject to the offer becoming firm we see it closing in around 9 months. We see it trading around 4400p until closing. Closing trade and booking +12.46% TRADING CALL Monday • 21 September 2015 • 10:107 I think it will be about 43…
Judging by Prada numbers we feel they will have an ok quarter. A few houses been pushing kering into LVMH numbers so expectations are for a decent quarter. EU and Japanese spending to make up for China weakness. We became greedy on the sell off and now close our short as we feel risk is…
We are closing ATOS as we feel technically it will struggle to break through 70 . This has proved to be a top numerous times in 2015. There are many positives still to come for ATOS. Cybersecurity, Xerox synergies and the well known drivers of big data, cloud and electronic payment systems. However we use…
We are happy to close this trade after 5 days and +15.10% return. With potential UAW strike in the background and post strong recent move we are booking profit. We still like the name for various reasons cited in our original idea, and we look to re-enter on any decent pull-back. See original idea for more details….
The rationale for this trade is not new. The Ferrari IPO process is rumoured to be starting on Friday which should refocus the market on the SOTP angle. It remains to be seen how much they are able to raise, but anywhere near the 10bn EUR rumoured and at these levels you are getting the…
Yesterday Wolseley’s stock fell 12% on earnings release which were good, however the US growth, or lack thereof, shook the investors’ confidence. We still see Wolseley as a strong company and we believe that the company still has a great value and potential to grow. The US and UK housing markets are still strong, and…