Liams Last Post : UK budget Cider duty increase sparls rallly in C&C , Glanbia takes off.

Good Afternoon ,

 

UK Budget was the key story of the day , the key feature from an Irish perspective was the increasing of cider and alcohol duties with Duty on cider to increase by 10% above inflation from Sunday but not as much as some had feared so the price of C&C reacted well closing +3.8%

 

INM reported results this morning which were in line with expectations , we met the company management for a sandwich at lunchtime and while they are decidedly circumspect about the prospects for the Irish business from here , it does look like they have come through the side of a harrowing re-financing episode and looking at the story from here , it is looking more and more interesting as one of the most geared recovery plays at this point.

 

Glanbia have been on the road telling their story about the upcoming prospective transaction to sell their Irish business of the Co-Op , Merrion published our views on the stock today also putting a 3.30 price target on the stock derived from a 12 x multiple on the earnings of the residual businesses. The stock rocketed today though and touched the Eur3.00 level before settling back at the 2.95 level with decent volume trading as investors get comfortable that the potential placing of approximately 37% of the company is an opportunity rather than a threat.

 

The Building materials stocks got hit today with UK broker downgrades.

 

Aer Lingus continues to reflect optimism that the Union members will reverse their original 'Turkeys voting for Christmas' original vote and vote in favour of the management cost cutting proposals. Stock is showing some signs of life and up from 60c two days ago to 64c now.  Only problem is that the Unions are so militant here that the outcome is far from clear cut.

 

 

Have a good evening

 

Liam

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

Mob:353-87-2313505

www.merrion-capital.com

Disclaimer www.merrion-capital.com/disclaimer.html

Merrion Stockbrokers Limited (registration no. 307878) is a limited liability company whose registered office is at Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.