Pair is starting to perform +3.69%, still believe there is more potential on this one, started to see some flows out of LVMH after seeing few investors jumping in onthe last few weeks playing the fact that MC will be one of the best peformers in eartning Season, but Reassuring numbers form Kering pushed some re-allocation in the sector.
----- Original Message -----
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 22 2014 16:04:37
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 22 2014 16:04:37
Follow-UpStill believe in this trade, RCO weak on -ve article in FT, stock is down on the day, LVMH better.I will wait to add some more----- Original Message -----
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 17 2014 10:57:05{RCO FP Equity MC FP Equity GRT D}* Remy Cointreau (RCO FP) - Buy- Q4 Sales a 3% miss, Cognac still weak, we could see some more dwg to consensus EPS, but pfr story is not there anymore.- Valuation still not cheap regarding the Cognac business but not too far from historical premium the stock is trading with the sector- RCO is highly correlated to Luxury trend in China and most of dwg has been done- Few weeks ago M&A rumors re-surface with a blog mentionning Brown& Forman was looking to the company, this blog was mentioning a €85/share minimum price on any deal to get the family to table.- 55/56 appears to be a strong support.* LVMH (MC FP) - Sell- Numbers were published on the 9th of April, the analysis fo numbers show us that we continue to see a down trend in volume that has been so far compensated by price increase, main point of the strategy remained of potential of price increase and maintain margin.- Stock is trading not far from historical highs (3.5%) and even if we can test this level I don't expect a major break upBuy Remy Cointreau Sell LVMH - expecting MC to not really move and RCO to go back to the 70's levelsLaurent