Hints and tips:
...This time around, they are getting a better, though hardly premium, deal. At €43 per share, L Catterton is offering a 17.6 per cent premium to Tod’s closing price on Friday....
...Shepherdson argues that declining S&L tax revenue augurs poorly for future S&L spending, as this chart shows: It’s a reminder to investors that markets are sensitive to changes, not levels....
...In our view, this probably explains their strong re-rating (forward P/E of 27.2x), and why they are trading at a 110% premium to the STOXX 600 (13.0x)” wrote....
...As Bolgona puts it: From a high level, relative to electing to account for loans at amortised cost, electing the fair value option provides a P&L tailwind during periods of loan growth due to recognising...
...The US has its “Magnificent Seven” tech stocks, Japan has its “Seven Samurai” and Europe has the “Granolas”: GSK, Roche, ASML, Nestlé, Novartis, Novo Nordisk, L’Oréal, LVMH, AstraZeneca, SAP and Sanofi....
...So I think I’m a great S&P 500 tracker fund guy....
...L’Oréal recently bought the latter for $2.5bn or 4.7 times last year’s sales. Creed generated over €250mn of revenues in the year to March....
...FT Premium subscribers can register for free here....
...Blackstone in September became the first private equity group to be included in the S&P 500 index and its rivals Apollo Global and KKR are hoping they are not far behind....
...The S&P 500 is often used as the default comparison because of its ubiquity, but, in reality, it’s a poor benchmark for private equity returns given how top-heavy it is....
...American equities recorded their longest winning streak in two years after the S&P 500 closed out July 3 per cent higher....
...Hence we think share price underperformance of wholesale banks such as DBK (4.7x P/E 2024E), BARC (3.9x P/E 2024E), BNP (6.9x P/E 2024E) as well as by some Money Center Banks is overdone....
...You can’t just look at the L part of the P&L. Secondly, who really cares anyway? Normal accounting rules don’t apply to central banks. The Fed can create money and operate with negative equity....
...Yeah, G-O-U-L-D. I didn’t know terribly much about this guy....
...Another grim reading on China came this week from The Swiss Watch Fed, Fédération de L’Industrie Horlogère Suisse....
...Microsoft is chugging along nicely but, at 36 times forward earnings, was trading at an unsuitable premium in 2021 (it’s at 28 now)....
...This is one criticism you’ll hear, and I want to read just briefly from Peter L Bernstein’s 1996 investing classic, Against the Gods. He writes here, gives this little fictional story....
...equity group L Catterton....
...Or if you’ve just got a lot of leveraged repo or interest rate swaps without huge amounts of excess collateral and your collateral value drops at the time that your P&L starts to stink and variation margin...
...Nestlé and P&G have both pulled off turnrounds; Danone and Unilever are slap bang in the middle of their own....
...Opinion: Premium subscribers can read Robert Armstrong’s interpretation of the latest Fed statement and decision in Unhedged....
...They might be willing to endure quite a few lean years in terms of their own P&L — and even to think about cutting their own costs and headcount — rather than take risks with deals that need stretched assumptions...
...It levies an annual charge of 1.5 per cent on their holdings (taken in the form of equity) and takes 20 per cent of the upside on any eventual sale....
...Broker Berenberg said the share valuation will depend on how quickly L&G can achieve its total target for operating profit of between £600mn and £700mn by 2025....
...Wilson ambitiously compares L&G with BlackRock and Apollo, rather than Aviva. If investors applied even a small part of premiums enjoyed by those US powerhouses, L&G would be unassailable....
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