Company reported 1H losses in the amount of 533 million EUR. Loss occurred b/c of poor interest rate hedging. We got this trade very wrong and the capital generation story never materialised. Time to move on. DONE VERY TIGHTLY. WAS ALL COVERED IN 2.5 HOURS APPARENTLY Tuesday • 17 March 2015 • 15:51 Solvency…
Post PMI and BPE earnigns last night we feel is Italy is on the mend. Banca Pop Milano says loans to corporates up 5%YTD driven by the manufacturing and services. First meaningful loan growth in 4 years. And growing credit line utilisation pushed fees up 14% yoy. At 1x book this stock is not priced…
During the CC the CEO said they will take collapsing the spread to the board in H2. It trades around 17-22% normally. As we write it is at 16.3%. So you’re downside if they vote no is probably 3-5%. With your upside being 18%. Would be happy to put the spread on at 17% or…
Think MT NA is worth a look as a buy this morning. reit guidance, and cons is already below Still a risk but miners price action turning a bit, 2 upgrades from liberum and they move miners. Although USD the main prob for me and rate rise is coming so unhelpful. Trading stocks for now…
Opened SU FP on January 15, 2014. At the time, SU had underperformed CAC by 1% since the ISYS/SU deal was announced which we felt was accretive. After nearly 2 years we are down 3.76% and it has become a sloppy long. We don’t see many near term catalysts. Never pleasant to lose on the…
Following the much anticipated and recently forgotten French consolidation announcement yesterday, we think the market was focusing on the wrong things in ORA FP The feedback yesterday was that Orange benefits the least, it will not get spectrum like Iliad, and will not realise synergies like Numericable or Bouygues. This may be the case, but…
Beer requires no introduction. Across countries three factors overwhelmingly determine the size of the beer profit pool: population size, GDP per capita, and market structure. North America and Western Europe serve as an example of market structure. Market size (300 million hectolitres) and wealth ($40,000 GDP per cap) are roughly equivalent, yet operating margins are…
We initiated the bear on the basis of it being a short post the spinoff and the re-concentration of the market on its remaining commodity exposure. Since initiation we are +9.68% absolute and 5.512% rel without a significant move lower in oil or iron ore. While we still think this will transpire over the next…
“Men marry because they are tired; women, because they are curious: both are disappointed.” That quote from Wilde’s, The Picture of Dorian Grey, neatly describes the dilemma faced by European investors today. “Giving up” and buying bonds is going to leave you disappointed with your returns, but so is “optimistically” buying high-quality stocks. The average…
From 37,000 feet managers of manufacturing businesses have three tools at their disposal to increase business value. First, management can devote resources to develop more bespoke and customer-valued products, these command higher prices and generate higher gross margins. Second, management can improve operating efficiency by closing high-cost capacity and holding less inventory, in so doing…