Beaten down , Eastern European business valued at zero with numerous potential catalysts ahead. BUY YTD MEO is -30% vs DAX -5% on back of Russian IPO pulled and current Russia/Ukraine worries Stock spiked +7.8% on the initial announcement of the IPO while it has fallen 20% over the past month on geopolitical worries…
Recesso technical sell off creates an opportunity. We do not believe shareholders that have been waiting for this deal to create real value want to block it now. This does happen where there is a recesso and the stock trades below the put price as people get spooked. 100m of shares voted against the…
Institutional attention and FTSE 100 inclusion the next step? The new Dixons Carphone company will have a mkt cap of GBP 3.85bn. We feel this will put it back on the radar of big institutions and analyst attention will turn to them again (currently poorly covered). They will also become a candidate for FTSE…
BAE is our weapon of choice for 2014 but has so far been more of a sparkler than a leathal weapon. Our main concern is the strong £, which will hurt underlying earnings. Growth has been lackluster and geopolitical issues although all around us have not translated into sales right now. We still think defense…
Tavares Marches On Very good set of numbers. Profit at last. Not sure many can remember the last time they did that! However still hated and most don’t believe in them. Alot of big shorts still out there. Tavares doing his job of under promising to over deliver. FCF was awesome and that’s what…
EUR/USD Dealers noted that the gradual widening in interest rate differentials between US/Europe gave the greenback an advantage- The premium offered by two-year U.S. Treasuries over German debt has widened to around 46bps Thu, 17 Jul 2014 10:30 THE EUR VS. THE US DOLLAR: The EUR “reversed” to the downside eleven weeks ago,…
Short squeeze another short opportunity? The squeeze is a good short set up in EDEN afrer missing estimates and conforming guidance. Short interest at 9% Still have the same issues of FX(although will be less in H2) and Venezuela exposure Cash flow is a problem as they pay a decent divi and need cash…
GSK look pretty painful and has been for us (-8%) but to year end it is a good trade. Talk of divi under pressure post call is unfounded as verified on the CC by CEO. SHP deal gets done and when that is followed by AZN attention will turn to GSK and they will re-rate….
THE EUR VS. THE US DOLLAR: The EUR “reversed” to the downside eleven weeks ago, but only now is the upward sloping trend line in real jeopardy. Note too that as the EUR rallied the volume of trade waned: a sign of impending weakness, not of strength. That’s from today’s Gartman and I think it…
Pop. Milano U/G at MS. Its a good U/G Pop. Milano Raised to Overweight at Morgan Stanley I think it is a good U/G. A name we like and have been looking at last few days. Feel they have been dragged down with the rest of the sector last week. For us they are…