Liams Last Post : Greencore looks interesting to me , CRH too showing strength , the banks D-Day is coming...

Good Afternoon ,

 

Markets had a good day to day with European airspace opening and Irish Airspace threatening to open but closing again.  The Eurostoxx50 index up +1.5% , Ireland +1.36% and London +1% with the US market up a more moderate +0.5% . Goldman Sachs in the eye of their own particular storm beat earnings estimates which may or may not have been politically the wisest move if they had any charges to throw at their accounts they may have helped win a tad more sympathy.

 

The Banks continue to find favour as we get ever loser to D-Day for the Bank of Ireland recapitalisation.

 

Aer Lingus announced that the Volcanic disruptions are costing them between 4m to 5m per day and so they will be hopeful of the cloud dissipating.Ryanair have made no similar announceenr but the consensus appears to suggest that the cost to them is in the region of Eur12m per day.

 

Glanbia had an update re the proposed sale of the Dairy business to the Co-OP. The price seems to be in line with expectations to a little better and earnings estimates look like they are on the rise for the residual business. The conference call was well received and the stock jumped +8% today.

 

Looking at the chart I sent out today showing the year to date comparative performance between Glanbia , Aryzta , Kerry and Greencore highlights the significant underperformance by Greencore  so far and with the investor day looming ever close I think this could act as a catalyst for this one to start to move and close the gap again.

 

Paddy Power took no time in rebounding after the weakness yesterday and close up +2.55% at 25.74. 

 

The building materials stocks are starting to show signs of life and CRH does look as though it is trying to break out positively from the range it has been in. It has been si successfully range traded for ages though so when it breaks out the move could be significant.  

 

Have a good evening

 

Liam

 

  

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

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