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…
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…
There is good reason to believe that right now stock markets in the US and Europe are putting in highs and that going forward high investment returns are going to be just a lot harder to come by. For the past few years stock markets have enjoyed a perfectly proportioned cocktail of low and falling…
BASF has had a great run with the rally in both the oil price and the Dax Into numbers we feel it’s right to take some risk off the table Back on 15.5x earnings we feel the risks in the oil division are more appropriately priced, and ex this area, the stock is trading on…
4Q14 results were good today, with strong order intake and bullish on 2015 outlook The dividend increase of 8% was also a positive surprise Overall the they beat mkt expectations especially in the subsea division and increased their current operating margin Although I feel 2015 will be even tougher and would be happy MT to…
Good numbers for us. They have delivered. NIMS looks better than cons. Reduced Russian exposure(reduced by 2bn) The key for us was always the dividend. They have beaten expectations by re instated the dividend for 2014. Big surprise and very +ve. This will not only be rewarded by the mkt in general as we have…
ING is a name we like stand alone. One of our key bull points was an expectation of good earning growth(cons look beatable) and this leading to dividend resumption. Any positive divi changes are being rewarded as seen with ISP today. Focus tomorrow will be on capital and any positive noises around dividend payments.Currently guiding…
UHR posted a poor set of figures with inline sales not feeding to the bottom line as a result of an increase in marketing expenses, and a worrying mix development, with low end brand outperformance impacting margins. This will lead to mid single digit EBIT downgrades today, and both trends are expected to continue, as…
+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…
There is pressure on Pirelli today (down 2.5%) after a broker is suggesting the company may need to write-down its assets in Venezuela and Argentina, similarly to what Ford did, adding profits are overstated by 12%. WE HAVE SPOKEN TO THE COMPANY and believe this is a storm in a tea cup. Why: Venezuela +…