Clues from Europe
Europe continues to move higher this morning helped by better than expected German IP numbers. Results from Aggregates – CRH, Heidelberg & Holcim- confirm what we already knew in the US, that a...
View ArticleRestructuring Basket
Rationale Since late June 2012, for those of more suspicious persuasions, we have been advocating allocating capital to quality restructuring stocks. We have been bullish on high quality growth stocks...
View ArticleAnhui Conch results – Economic consolidation happening
Anhui Conch results came broadly in line yesterday. 14.7% Sales growth 4.9% NI growth (2% miss). Commentary from their release was supportive of positive trends in China regarding capacity and...
View ArticleJust a thought: capex to trump consumer?
Are we about to see a reversal in fortunes from the Global Consumer towards the Global Manufacturer? It strikes us the past three years or so have been all about the consumer, China re-balancing,...
View ArticleHolcim, great entry point. Buy
We think this is a great entry point in Holcim. The stock has been hit hard on its India exposure, with the Rupee falling 28% relative to the USD from May to August. Now, with the help of China...
View ArticleLook East (cont): PMI/Steel sectors strong again
China PMI plays sharply higher again today; Hebei Steel +6% on huge volume as it breaks above its 100 day mav, WUHAN +3.2% and now back above its 200 day mav. Remember it was Hebei that last week...
View ArticleHolcim, great entry point. Buy
We think this is a great entry point in Holcim. The stock has been hit hard on its India exposure, with the Rupee falling 28% relative to the USD from May to August. Now, with the help of China...
View ArticleCapex/M&A (cont): Fund-managers want CFOs to spend their money
Further to our recent comments on this, note we have had two US deals in two days, one in the chemicals space and the other in paper (the most recent being Huntsman buying Rockwood Titanium for...
View ArticleHolcim (aviate Buy): keep adding on India improvement
India’s Sensex made new high in Rupees, up 25% from the lows in USDs. The Rupee is more a driver of sentiment than EPS but ACC/AC EM plus INR moves favourable, while other EM currency exposure...
View ArticleGlobal Capex & M&A (cont): “Looking for an Investment Boom”
More join us in support calling for an increase in Global Capex & M&A (inorganic capex). The heading of Deloitte’s Monday Briefing today is “Looking for an Investment Boom”. In it they provide...
View ArticleChina PMI, hit the highest level since March
September preliminary manufacturing PMI 51.2 (est. 50.9, prev 50.1). The flash reading showed increases in output, new orders, export orders and prices, while employment fell at a slower rate. The...
View ArticleFX risks are rising again
Note against the EUR the BRL, IDR and ZAR are heading down again and the YEN has made a multi-year low. The Real is heading back to Summer lows. The Yen is heading to 2008 lows. The risk here is the...
View ArticleStay long Holcim/Lafarge and their sector
Both Holcim and Lafarge are in our Reflation Recovery Basket (and Riccardo is a buyer of Lafarge), and assuming the deal gets through we see further upside. It seems a rather rational departure from...
View ArticleHolcim: stay long
Q1 Sales CHF4.09b (4.16b est.), Operating Profit CHF295m (267 est.), Net CHF80m (110.5m est.). No new detail re Merger. Europe weather really helping the results, cement volumes were +20%. NA weather...
View ArticleRobust US construction activity, stay long HeidelbergCement
Linked to the above we note robust construction activity in the US as well. According to the trade group Portland Cement Association (PCA), cement consumption is expected to rise 7.9% this year, up...
View ArticleConstruction recovery: Euroconstruct raise output forecasts
Euroconstruct published its revised European forecasts on Friday (last one was published at the end of last year). They are increasing their overall construction output forecasts for 2014 and 2015, by...
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