Monaco Alpha Update: Below is a brief update on each of our names
Below is a brief update on each of our names
CCJ B +127%
HOLD
Performed very well, we continue to like the name and see a lot of prospects for the sector, especially as governments have felt the pressure of from the spike in oil due to the geopolitical tensions. A western Uranium company like CCJ with reserves in Canada is a great way to play this.
http://monacoalpha.com/ideas/re-iterating-nuclear-power-theme-long-ccj-dangerously-clean/
CNA B +57%
BUY
Turnaround begun, simplified the structure, focusing on fewer consumer businesses and rather the strength of energy supply. We ultimately expect this to lead to multi-year positive earnings momentum. They also hold a 20% stake in EDF Energy which we also like to have exposure to.
http://monacoalpha.com/ideas/buy-cna-ln-update-on-earnings-1-5-to-date-on-position/
TMV B +30%
HOLD
With inflation CBs no choice but to hike, until they blink we stay long.
http://monacoalpha.com/ideas/bond-move-gone-too-far-buy-tmv-us/
NOKIA B +34%
HOLD
We like the sector long term, the company’s 5G growth path is clear – The company continues to develop sales growth despite a challenging environment in China and the US
http://monacoalpha.com/ideas/monaco-alpha-update-4-reiterate-buy-nokia-fh-results-out/
HBR B +19%
CLOSING
Booking profits, oil had a great run but HBR remains very hedged and has therefore not benefited as much as the others, we are moving on with a nice profit
VIV B +18%
CLOSING
Booking profit , we have made a nice return after the spin-off as more analysts and investors have been able to focus on the company now that it has cleared up some of its holding structure.
EDF B +12.3%
ADD
We are adding to the position as part of the rights issue. We see the rights issue as clearing a lot of the worry/overhang in the stock making it more investible again. The government has yet to make any final decision of what happens to the company but we like the split prospects.
http://monacoalpha.com/ideas/edf-fp-update-hold-21-abs-13-1-rel-awaiting-announcement/
SSE B +12.3%
HOLD
We still see it as cheap and like the speculation about a potential break up etc. We also like the sector and see this as one the cheapest renewable plays in Europe – happy to sit long
BAYN B +9%
CLOSING
Booking profits and moving on.
http://monacoalpha.com/ideas/monaco-alpha-buy-bayer-securing-the-future-dcf-upside-remains-huge/
KBC B +1%
HOLD
Leaving it for now as we like the sector and see KBC as a cheap way to play it as rates are going higher with inflation.
http://monacoalpha.com/ideas/buy-kbc-setting-up-for-a-stella-q1-print-we-see-a-25-upside/
MBTN B -2.25%
HOLD
Our solar-power growth story remains intact, the stock got hurt on the renewable sell-off but we think the growth prospects of the company and see the sector as being the right place to be as the world is looking for energy alternatives.
http://monacoalpha.com/ideas/trading-buy-mbtn-sw-battered-into-numbers-remains-a-cheap-renewable/
TED B -3%
HOLD
The company suffered from the market sell off but has since been approached about a potential takeover, we see this as a great potential catalyst to crystalize the value within the stock. Even with an opportunistic bid we continue to see a minimum level of 160p leaving a load of upside.
http://monacoalpha.com/ideas/buy-ted-ln-100-upside-transformation-plan-leaving-huge-upside/
FAR B -8%
ADD
The stock has sold off due to its geographical exposure to Russia, and potentially as some of the holders might have been forced to liquidate. The company released a statement last month detailing how they are not exposed to Russia. We continue to see huge prospects for the name, timeline more like 1-2 years though, we therefore just see this as a great opportunity to add.
DOLE B -12%
HOLD
We continue to like this story although the stock has had a bit of an opposite reaction to the inflation theme then what we were expecting. They are the market leader in fresh fruit and vegetable sector – nearly double the revenue of its competitor – DOLE’s market valuation simply makes no sense, especially given how strong their earnings were.
SGRE B -4%
HOLD
Renewable sector has suffered but as with MBTN we want exposure to the sector as we expect the world to look for energy alternatives after the rise in oil.
http://monacoalpha.com/ideas/buy-sgre-sm-adding-to-our-renewable-picks-ahead-of-results/
ATO B -38%
HOLD
Had a shocker, while the company says it does not want to sell the cyber security business, we see it as being highly vulnerable to an activist investor getting involved to push the management to make the right decisions. We have also seen both Airbus and Thales having shown interest which could lead to another catalyst.
http://monacoalpha.com/ideas/buy-ato-fp-our-top-pick-in-the-it-services-sector-we-see-a-35-upside
SPM B -49%
HOLD
Part of our oil portfolio package, we should probably have sold on the profit warnings but restructuring package on the way, we will reassess after this.
http://monacoalpha.com/ideas/the-coming-energy-crisis-and-how-to-play-it/
BOO B -22%
CLOSING
Had it has a buy against ZAL GY – both have been dogs – we are moving on.
http://monacoalpha.com/ideas/trading-buy-boo-ln/
Energy basket
HOLD
RIG B +12%
CGG B 0%
YPF B -3%
SUBC B +4%
TLW B -10%
TDW B +57%
GKP B +51%
PAM B +13.6%
HLX B -20%
FTI B -24%
ATAD B -94%
LKOD B -99%
We have had the view that we have an ENERGY CRISIS coming due to the new drive to be carbon neutral which although ultimately its an important cause its unrealistic in the time frame and will lead to an energy crisis. That coupled with current geo political issues re in-force our view.
This is why we have had a long standing positions in Uranium and mid cap oil names.
Fossil fuels still account for 84% of world energy demand at a time when demand is increasing and it will be near on impossible for the normal supply function to respond.
So an allocation to mid cap oil names is essential as they will benefit from the surge in oil prices.
There is still a unique opportunity as we have amazing supply destruction, a denial from the market of future energy needs, and the virtue signalling abandonment of fossil fuels led by Western oil companies coupled with geopolitical risks which have only increased the need for western energy sources and energy security.
We continue to hold all our oil positions as we see them as multi year trades with enormous upside.
For the Russian names we are unfortunately stuck in for now, we have no choice but to hold, we have no insight into what Putin will do.
http://monacoalpha.com/ideas/the-coming-energy-crisis-and-how-to-play-it/