Liams Last Post : Markets volatile and price levels attractive again for NON Japan related stocks.

Good Afternoon ,

 

What a week for markets with Libya , Bahrain , Fukushima and the aftermath of the Tsunami and Earthqualkes , not very helpful for fundamental analysis as news events triggered rigors in the markets and sudden movements which were enough to unnerve even the bulls who wanted to buy cheap stocks.

 

The Irish financials are trading under pressure as they face stress tests and pressure to de-gear without any obvious route to achieve the goals they have been set.

 

We looked at C&C as a potential short… I have to say I think that there is merit on taking a look at this one with the host of sharply higher costs of inputs , packaging , distribution and the advent of a major competitor prompting promotions and price cutting. Gotta think there a negative surprise potential here and the fac that the stock has been relatively strong recently aids the short opportunity.

 

St.Paddys day saw a big relief rally which lifted CRH to the resistance level ( I think it will drift from here) and a sharp rally in Kingspan whilst grafton was ignored. Staying Loyal to the Grafton theme , this one is now obviously lagging and should be bought.

 

RUBIS reported numbers which we believe were a bit disappointing. It would be great to be pushing this one as our first pan Euro BUY but simply DCC looks cheaper and earns higher returns not to mention underperforming RUBIS at this point. Buy DCC.

 

 Cheltenham rumbles on with record crowds , a successful run for the Irish and Favourites running at about average levels wont do Paddy Power any harm.

 

The Libyan No fly zone helped Oil proces fall and the airlines to briefly rise but Ryanair continues to drift.Aer Lingus looks cheap here and even with the one off exceptionals which I don't like , the recent sharp pullbakc in the stock prices a lot of that news in..

 

Have a Good Weekend and that the Rubgy is a good contest…. (Hope the wheels fall off the chariot… J )

 

Liam

 

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

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