OPEC has finally delivered with agreed cut of 1.2M BPD. This was a short call into the OPEC meeting with low expectation of any sort of viable agreement. BLT rallying post OPEC and we are covering our short for +3.16%. BLT TRADING SHORT INTO OPEC Monday • 28 November 2016 • 08:59 BLT a…
ENEL CMD on 17-19 strategic plan making all the right noises this morning. Looking to cut annual costs to €10.6bn in 19 from €11.6 in 16. Aiming for Net income of €4.1bn in 2018, the mkt was at €3.8bn. Aims to dispose of about EU3b of assets in the next 3 years and reinvest proceeds…
That UBS piece on crowded trades shows Nestle as a crowded underweight and with what the sector has done and how far ahead of itself the mkt has got I think it is a decent BUY. Lets not forget the new CEO as a catalyst too as he will aim to boost shareholder returns by…
Trading near all time highs post an average set of numbers and a big TRUMP rally. We think the move has gone too far. We understand the positive for infrastructure stocks but we feel too much is priced into the stock far too quickly. There is a long way to go for Trumps till we…
Sector has under performed the market ytd due to numerous factors. EU roaming/CAPEX/revenue trends/Rising rates/positioning. We now feel that the sector and especially Vodafone valuation and expectations have re based, we feel the risk reward is now to the upside. The disruptive entry of Jio in India may pressure revenue but it is known by…
FIAT has rallied 37% since the mid summer lows and +17% in the last 6 days. The rally this week has been put down to firstly the €2.87bn mandatory and the $7.08 – $8.32 strike as the terms change and people where over hedged so they have been forced to buy back the stock (don’t…
We are getting a glimpse of the likely Q1 evolution here today in Europe. The confusion is that with a meaningful pullback in bond yields over the last month, the reflation trade has barely lost steam, and with better inflation/PMI prints over the last 2 days, it has restarted aggressively. The point is that there…
Underperformed the sector and we feel unfairly considering fundamentals are solid. MIB and banks in particular have suffered due to the NPL issues and the constitutional reform vote . Numbers will be solid tomorrow and the capital position strong, with CET1 of over 13%. However the real story for us is the yield story. Numbers…
Was a play on the German energy prices surging following coal and carbon prices. The positive news on the Nuclear Liability resolution on October 14th (approved by the Cabinet on October 19) also helped the trade. We have been a touch greedy on this trade knowing the risks associated with it as we believe an…
We are expecting good numbers on the Nov 7 and feel that it would be prudent to close the second half of the position. We had a good run and are booking another +4.75% profit. We are booking total net profit of +15.6%. CLOSING HALF in SHORT RYANAIR +20.3% ABS +18% Rel Tuesday •…