CLOSING: DASSAULT SYSTEMES

CLOSING DSY FP

US 3D printing stocks skyrocket as tech short-squeeze continues.

Still expensive for us but time to close this trade as nothing has happened.

Closing for +0.75%.

 

TRADING SHORT INTO FRIDAYS CMD

Wednesday • 1 June 2014 • 15:10

Analysts day Friday where they will give their projections for the next four years.

They have reassured the mkt recently on their ability to improve licence growth and have set some high standards leading into this CMD. They are expected to announce a doubling of the revenue between 2013 and 2018 and more than a doubling of the EPS through margin expansion.

Been question marks over their margins since their last warning in October 2013. Organic growth may be good but I think margins will be an issue. The operating margins target was lowered in April and see this trend continuing.

Trading on rich multiples with analysts 40% buys 36% holds and 24% sell recommendations.

Closed the gap from their last warning in October and have no margin for error Friday.

Market obviously thinks they will come up with the goods Friday and ODDO and ML giving you a nice entry point today.

LT they are a great way to have European exposure to 3D but would use this strength to get short into Fridays CMD as margin erosion continues