Liams Last Post : Another week and Risk ON remains the watchword.

Good Afternoon,

 

The last post has not gone away , it just has taken a bit of a back seat to extensive client marketing over the last week or so. Markets continue to be resolutely strong. Risk On is the new catch phrase and guess what ? Ireland perfectly suits the Risk On mode.

 

There is a very clear shift of perception favourably towards Ireland and large Institutional clients have very much a renewed interest in chasing performance and seeking out ideas. This is in marked contrast to the risk averse mode that characterised last year.

 

I believe that Ireland will continue to benefit form this shift of emphasis and perception from Pariah to opportunity. Liquidity is a problem for some guys and also an opportunity for the brave. If we have truly moved past the inflection point then you want to get over the low liquidity as it usually signals that point where sellers disappear and there are more buyers but they are being careful with the price.

 

What would I buy ? you know my list now. I started to push Grafton at 2.85 and though it looks like it has done a lot at 3.65, I am going to be resolute and suggest a continued strategy of building positions rather than quick profit taking. Ryanair has been hit by concerns re the weather and by the Easyjet disappointment. I think this one should be bought here. DCC has had a decent run but the fundamentals also remain attractive and one for the long term.The trouble with DCC is that it can go quiet for periods so I suspect that this may be the case with this one. I am looking for an opportunity to get more aggressive on this one if it comes back just a little bit more.

 

Kingspan also is ahead of itself and later cycle than Grafton but is in demand and recovered very quickly after being sold down this morning.

 

In Short , there is a market appetite for risk. Earnings upgrades are likely to be the feature of 2011 as well as corporate activity. Selling pressure is non existent and a renewed appetite from International institutions will be the driver of performance for Ireland.

 

Have a great weekend.

 

Talk Monday. ( Get your dealing boots on…)

 

Liam

 

 

 

 

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

Mob:353-87-2313505

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