CLOSING LONG ISP

+17.01%

We bought this name into numbers as it was unfairly punished due to macro concerns.

However company had solid fundamentals and the real story for us was the dividend.

It took a while and has been a wild ride in the last few weeks but we will use the recent rally to take profits.

Closing for +17.01%.

 

BUY INTESA
U/P PROVIDES NICE ENTRY POINT

Thursday • 03 November 2016 • 15:32

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 will give further investor comfort to the dividend promises of 3bn which equates to 9% dividend yield. Not bad in a low yield world.

Buy as numbers will be a catalyst for catch up from recent underperformance.

ISP has underperformed the SX7E by 6.2% MTD & 17% YTD and the SX7P 2.9% MTD & 16.8% YTD.