CLOSING SHORT MEDIASET

MUSCLE SHOW IS OVER. +31.40% abs +24.41% rel

The bid hasn’t come to fruition and the announcement that the shares will be placed into a trust denote that VIV wants TI more than MS. In the meantime the market has been left to deal with the decline in OTT TV and numerous warnings elsewhere in the space, allowing MS to reconnect with fundamentals….

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NEXT

TRADING SELL: +12% OVERDONE??

Small beat, but +20% on a 1% increase in PBT guidance since the bottom and +12% today. I understand the positives of the buyback and trading being better. Decent SI has also helped the rally today. They had a relevance problem, which they have cleaned up, that is what they are in control of. HOWEVER…

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LONG TELCOS vs SHORT INDUSTRIALS

22% UNDERPERFORMANCE

This trade has not worked from day one. There are still telco’s we like stand alone and there is still great value and stories in the sector. VOD/TIT & DTE but we step aside on this spread trade and lick our wounds. Have a good day. Closing for -14.60% abs.   LONG TELCOS vs SHORT…

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BUY RWE

CLOSING RWE: +57.96%

We initiated on RWE as a cheap way into Innogy. RWE’s valuation is highly dependent on its Innogy stake When we initiated it accounted for over 200% of RWE’s market cap. Now it only accounts for 120%. Recent out-performance has come from that discount reducing as people saw value and the recent bid noise around…

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SAINT GOBAIN

COMPANY HAS DESTROYED VALUE FOR 10 YEARS: SELL

Compagnie de Saint-Gobain manufactures glass products, high-performance materials, and construction materials. They produces flat glass, insulation, glass containers, high-performance ceramics, plastics, abrasives, and building materials such as gypsum, roofing, wall facings, mortars, and ductile cast iron pipe. SGO also retails building materials through Point P in France and Jewson in the UK. While the company…

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SOLOCAL

NEW CEO + STRONGER BALANCE SHEET + STABILIZING/GROWING BUSINESS => HIGHER PROFITS

Target Price €1.33 (upside of 42%) TP on ev/ebitda €2.03 (upside of 115%) Solocal Group is principally engaged in local online communication. The Co provides digital content, advertising solutions, and transactional services connecting people with local businesses. Solocal also supports the online development of SME. The print business (Yellow Pages) is slowly dying (15% of…

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BUY TELECOM ITALIA

CHEAPEST TELCO IN EUROPE WITH LARGEST UPSIDE

Cheapest Telco in Europe with largest upside with strong quarterly earnings for the past 3Q. Consensus remains well below management guidance. Telecom Italia S.p.A., through subsidiaries, offers fixed line and mobile telephone and data transmission services. Telecom Italia is set to dominate TV distribution in Italy with a market share similar to the 50% it…

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ENI BUY

OIL: REITERATE BUY ENI

Interesting convergence of events this week. Perhaps the most significant was the CAPEX cut by Anadarko, one of the best capitalised US E&Ps, essentially showing that the lower oil price is starting to bite. Importantly for the sector, which is usually rewarded for growth, Anadarko rallied yesterday, which may nudge others to show some discipline…

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BUY TELECOM ITALIA:

Equity vs long bond, has hugely u/p (see graph below) & strong numbers from Vodafone in Italy

Vodafone numbers strong in Italy, European macro flying and so is the euro so buy domestic growth. Still the cheapest telco in Europe post the last 3 quarters of excellent earnings growth. With a large gap between cons and mgmt guidance set to narrow. At the same time current valuations (DCF, relative and BV) point…

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SHIRE

HUGELY UNDERVALUED WITH 50% UPSIDE

Superb Drug Pipeline –Strong Acquisition Track Records – Great Value – Management Second to None, the way Shire management team has developed the controversial drug ADHD is a testimonial their capabilities Shire is a biotech company focusing on specialised and rare diseases across 7 therapeutic areas – haematology (20%), genetic diseases (25%), neuroscience (23%), immunology…

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