Luxury backdrop warrants sticking with it! We are wary of participating in a consensus position, but feel that the ongoing deterioration of the luxury backdrop warrants sticking with it. Consensus is looking for 3% organic.FLG will be the important swing as usual. Cons is looking for 1%. Tough comps in Japan following the pre buy…
BMW is trading as expensively as ever at 12x next years earnings. This despite poor guidance in mid April and increasing risks. 2015 guidance of ‘solid’ pretax profit growth, later confirmed as mid single digit growth, is a slowdown. This reflects the ongoing normalization of the Chinese market (20% of revs). Feedback is that BMW…
The sweet-spot for investors is typically a company that can re-invest its profits in expanding its asset base for many years into the future. In doing so such companies compound their shareholders’ capital. HSBC’s $2.6trn balance sheet and presence in 73 countries is thus enough to put off any investor looking for a long runway…
+11% YTD and +33% off October lows. Market is aware of positive currency impact of the weaker EUR This performance is in contrast to 8 consecutive quarters of earnings downgrades It now trades on a punchy 19x earnings. Going into a quarter where we are likely to see the worst ever organic growth number in fashion and…
BASF has been a massive laggard largely due to its oil exposure Short term material moves downwards in energy markets usually lead to destocking events pressuring volumes (see LXS). However we feel this has been reflected in the downgrades we have seen since the back end of 2014 The impact on the core chemicals division…