Investment theme: Industrial – Part 2
Based on a better macro environment, industrial activity is looking up; this is supported by the leading indicators coming out of the US and Europe. In general, seasonal fluctuations offer good buying opportunities.
Favorites:
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| ABB | ABBN | Industrial | 17.57 % | 5.91 |
| Investment case: ABB is a late cyclical, and it generates a large part of its revenues and profits in Asia, which is expected to be the long-term winner of the present geopolitical changes. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| General Motors | GM | Automobile | 28.06 % | 5.21 |
| Investment case: The stock’s weakness due to the mishandling of the recall is offering investors a good entry opportunity. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Airbus Group | EADS | Aerospace & Defence | 27.51 % | 4.25 |
| Investment case: A350 flight tests are progressing well, more than 60% of the tests have been conducted so far and certification could be reached as early as the end of this summer. The first deliveries to Qatar Airways could could occur in the course of the 4th quarter of 2014. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Syngenta | SYNN | Special Chemicals | 23.63 % | 6.97 |
| Investment case: SYNN is strongly engaged in the most important secular growth trend: that of providing better nutrition to the world’s population. The company is targeting an EBITDA margin of 24.2% in 2018. Based on the present share price and the fundamentals in place, SYNN offers a nice upside potential. | ||||