Since 2009 rising corporate bond prices, driven in part by falling risk-free interest rates as well as shrinking default premiums, mean corporate cashflows have been discounted at lower and lower rates. In other words, corporate cashflows have been valued at higher and higher PE ratios. Any company that has demonstrated consistent earnings growth has seen…
Reopening a short 2014 EBIT consensus is too high at CHF1.97bn – could come down to c.CHF1.75 according to Mainfirst One of our original arguments was that consensus was too high Analysts still love them and expect organic growth. I think they are dreaming Apple watch is not far away and will have a…
Had a great and deserved run as played catch up vs the sector recently. We will take some profit off the table. They are still our top pick for 2015. Q4 will see them as cash positive. The ongoing restructuring through the back to the race plan gives them a lot of levers to pull….
Personally I can’t see tomorrow being anything but dovish. Like most I don’t see them doing anything tomorrow but the macro recently especially inflation expectations are helping Mario’s cause. The rhetoric will continue insinuating government bond purchases as well as other non-standard measures. Even if people decide by him not actually acting tomorrow it is…
WOS results were good yesterday and although the stock traded slightly lower this was driven mainly by high expectations going into numbers. Strong US sales were encouraging as it grew its markets share in an expanding US housing market. Citi downgraded them today but it feels more of a profit taking move. They themselves say…
TRADER MARKET VIEW +ve MKTs into ECB Focus on commod/oil sell off but quietly starting to see a real move in the peripheral banks here as well. Spain and Italy at/near highs of the day. Cheaper oil and input prices so more money for consumers. Granted more chance of deflation but means more chance…
Interim management statement tomorrow Company has Q1 2015 sales & revenue release tomorrow at 7:00GMT We are still bullish US housing, driven by an improving US construction & economic backdrop WOS and CRH are our favourite names to play US housing and dollar strength Currently +6%, staying long Mon, 02 Jun 2014 08:11…
ENEL is back in territory to get short. Missed it earlier this week but the government placing is coming. *ITALY MAY SELL 5-6% OF ENEL IN 1ST HALF OF DEC.: SOL
Investor Day tomorrow DL is holding an investor day tomorrow in Amsterdam We continue to like DL on its capital return story and value vs the sector Dividend messaging will be key as they aim to remove the scrip component with solvency over 200%(Self imposed level) Another catalyst will be commentary on the disposal…
Interesting note from Exane today. Looking at Adidas from a deep value perspective and re pushing their recent M&A note. Net net the company now looks vunerable to corporate activists. Worst case is disposal of brands and best case a full bid for the company. POST NUMBERS Thursday • 06 November 2014 • 10:59…