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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RESEARCH REVIEW for 1H 2017

The French Specialist

Following a 7 year sabbatical, I am again trying to find and recommend great value in the European markets. As in the past, I am researching companies trading at a substantial discount to peers on SOP/NAV, relative valuation and DCF with a catalyst to realize value. I have written on 8 companies (7 buys and…

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TECHNICOLORE

CLOSING POSITION AFTER ANOTHER PROFIT WARNING -3.25%

It feels that it is a bigger profit warning than just the risen cost of DRAM and mgt sees falling rev in Connected Home by about 10% in 1H (tough comps) but expect rev to rise 15% in 2H … It feels that they postponing again a turnaround: I would take my profits / cut…

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BUY DEUTSCHE TELEKOM

CLOSING SCRIP ARB OPPORTUNITY: +2.3%

Although we like the MT picture for DTE this was a short term technical trade. So we step aside and book some profits. +2.3%  For more trading ideas: http://monacoalpha.com/   BUY DEUTSCHE TELEKOM SCRIP DIVIDEND ARB CREATES OPPORTUNITY Thursday • 15 June 2017 • 15:39 DTE went ex div on June 1st. Shareholders can elect to…

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VIVENDI

STRONG BUY: A (NEW) POWERHOUSE IN CONTENT/PRODUCTION & DISTRIBUTION BUSINESSES

Target Price: 23€ Blue Sky: 29€ UMG is turning around as streaming more than compensate for downloads. Growth is coming back for the first time since the early 2000. UMG is the largest of the 3 major (Warner Music and Sony Music) with a 35%+ market share and more than 3mn titles. Increasing adoption of…

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