SIEMENS

The P&G miss, but that isnt a surprise to anyone, and clearly isnt the driver of the group now given the 9% profit beat today. Digital factory is the buzz area and that was a huge 20% beat. This is a stock that polarises opinion. At 13x earnings and 9.5x EBITDA it is clearly cheap. But the fleet of ships strategy is yet to gain a lot of traction amongst investors. With the agreement with the unions announced yesterday, and the power restructuring charge to come in the second half now, you are paid to wait for what will, over the next few months, become an eagerly anticipated Vision 2020+ plan.

Trading at a huge discount to its (mostly listed) SOTP, and huge underperformance vs the sector, this is a BUY.