CLOSING: CRH
We have been bullish on this name for a while based on its geographical exposure, valuation and potential opportunistic asset purchases from Holcim/Lafarge
The purchase of assets from Holcim and Lafarge for a reasonably 8x EV/EBITDA post synergies gave us some immediate earnings accretion. We took that opportunity to take half the position off
We like the look of the acquisitions and so does the market, demonstrated by the rights issue above market
However, after a 20% move YTD to now trade inline with the sector on valuation multiples we don’t see the need to run the risk of integration
We are happy to lock in profits, with the aim of looking for a better entry point
Closing for +23.6%
25% ACCRETIVE DEAL. CLOSING HALF POSITION +18.7%
Monday • 02 February 2015 • 11:32
One of our original bull points was Lafarge/Holcim being forced sellers and if CRH can get a price near the 5bn mark it will immediately become accretive.
The deal announced today will be 25% accretive in first full year.
Nice move this morning but the stock price is only back to where we were a week ago.
We will use this opportunity to take half the position off and look for a full exit at 1800. +18.7%
NOW IS THE TIME. BUY INTO THE CLOSE
Friday • 19 September 2014 • 16:14
As the reweight takes place at the close today and the selling pressure winds up now is the time to buy a few
This is a technical trade ST but more potentially positive news today as CRH are Exploring bid for all assets Holcim/Lafarge. value €5-7bn(Rtrs)
Lafarge/Holcim are forced sellers and if CRH can get a price near the 5bn mark it will immediately become accretive
Massively underperformed the sector and also has the upside catalysts of US dollar appreciation, faster margin recovery, and a big disposal
GET READY TO BUY
Thursday • 18 September 2014 • 10:22
Euro STOXX 50: Nokia will replace CRH
CRH nicely rebounded last week before weakening earlier this week; more supply should materialise in the next two days.
Once this supply event is done they are a buy for me, creating a nice entry point this Index change
Massively underperformed the sector and also has the upside catalysts of US dollar appreciation, faster margin recovery, and a big disposal
Get ready to Buy a few