Spread is up 4.9% since recommendation - I will take profit on half of the position.
Laurent
----- Original Message -----
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 22 2014 15:58:58
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 22 2014 15:58:58
The spread is +4% since we set up on thursday....continue to think that there is some decent potential on this one.we initiated @ 30.90 (Ratio), trading now @ 32.15 (4% higher), will start to unwind @ 34 (+10%)Laurent----- Original Message -----
From: LAURENT CHEKROUN ()
At: Apr 17 2014 12:22:05{MKS LN Equity AH NA Equity GRT D <GO>}* Marks & Spencer- Company pulished on the 10/04 and was weak because of misunderstanding on Q4 Gross Margin Weakness, Company is expected to publish FY on the 20th of May...but numbers have been adjusted now- M&S generak merchamfise should continue to head in the good direction, food is quite isolated from a branded food price war- Strong execution from management and potential cash return could help the stock to rebound- Historically MKS is trading with a 20% to UK Market P/E, trading only with 5% now* Ahold- Since Last publication on 27th of Feb stock outperformed the SXRP by 7%, publication can justify that move but there is no clear reason on fumdamentals- weak LFL sales growth in the US (-2.1%) and in the Netherlands (-1.0%),- Risk of stiffer competition and margin rebasing in the Dutch market (more powerful competitors, with in particular Jumbo)- Still no real signs of pick-up in volumes or food inflation in the US- It looks fully valued to us – trading at a 2014e P/E ratio of 13.7x vs 12.8x for peers* The spread is trading on bery low historical levels - we can see a quick reversal, historical lows (-3.3% / 29.86 )MKS 410 levels appear to be a strong support, stock can trade quickly to 460/470 levlesAH : 14 levels are a strong resistance, could see stock trading back on support 200d MA on 13 levelsBUY MKS SELL AHOLD