Hints and tips:
...The chances of (c) are impossible to estimate, even granting that Putin looks weaker now....
...“I don’t see a massive rebound in exits next year,” says Pierre-Antoine de Selancy, managing partner at 17Capital....
...S&P downgraded its ratings on Evergrande’s bonds from B plus in January to double C by September, before they were removed at the request of the company last week....
...In further reading, David Deacon, whose record in talent management includes stints at Credit Suisse, MasterCard and Capita, adds the missing fifth C — culture — to the four I mentioned in my column last...
...Over the past three months, sales of bonds by triple C rated companies have run at a record pace, Melentyev said....
...They illustrate their argument by comparing the paths to success of the richest people in Mexico and the USA (p. 39)....
...Tech sectors led the US stock market’s rebound from the spring lows. In the year to date, three of the top five leading sectors in the S&P 500 involve technology. A fourth is mobile telephony....
...Cairn Energy: A rebound in exploration is unlikely near term given a limited drillready prospect inventory following a disappointing Mexico drilling campaign....
...It trades at a multiple of 39 times its 2020 sales and has far outpaced the rebound notched by the S&P 500 over the past month and a half....
...One factor impacting underperformance, is a reduced E&P valuation, and we now carry £0.6bn vs a £1.2bn valuation in Dec ‘19. The -£0.6bn change in our E&P valuation is equivalent to c.11p....
...However, it also guided to net E&C margins (E&C is ~75% of revenues) of only 2.0-2.25% versus our prior forecast of 4.7% and a ‘normal’ expectation of 5-6%....
...At 28.7x P/E CY21, we move to Sell from Neutral. Burberry has already underperformed peers YTD... Burberry’s share price has underperformed the luxury peers by c.12% year to date....
...Do you think we are in a commodities supercycle, or do you think the rebound that we've seen in commodity prices over the past year, which has been very strong, is just a cyclical recovery?...
...Over 2009-19, SWMA achieved average organic sales and operating profit growth of c.5% p.a. and c.7%, respectively and EPS growth of 10% p.a....
...The stock trades at 21x FY22E P/E. During the lockdown, we have seen major brands, i.e....
... Tele2: set up for a beat in 2H20 and a strong rebound in 2021....
...Banks could rebound with PMIs, but we remain MW. More provisioning is likely ahead, peripheral spreads are volatile and dovish ECB may cap the rebound in bond yields. We prefer Insurance (OW)....
...Growth – worth every penny Value has beaten growth by 6% since mid-May as PMIs rebound and high yield spreads have compressed. But we doubt such a move is sustainable in the mediumterm....
...We get a Q3 trading update on 30th July, and we would expect similar caution about Q4 and the pace of the rebound....
...B stocks and high-beta stocks managed a small rebound....
...Very optimistic to assume everything will be fine from here: Following a steep rebound, Rightmove trades at a P/E of 32x on consensus 2021 EPS, earnings which consensus expects to be broadly stable compared...
...More than 12 per cent of the loans held by CLOs are now rated triple C — often indicative of a company on the brink of collapse, according to S&P Global....
...S&P goes down two notches, to BB from BBB- previously....
...Next currently trades at c.10.5x FY20 P/E but doesn’t offer its usual strong cash returns currently....
...Company commentary supports our view of limited direct impact to P&C : Hannover Re: noted a potential €200m loss across P&C and L&H; Munich Re: noted a €500m loss should all the events it covers for communicable...
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