Rudi's View | Feb 15 2018
In this week's Weekly Insights (this is part two):
-Panic Not Invited
-Buy Restructuring Stories
-Conviction Calls: Wilsons, Macquarie, FNArena's Sentiment Indicator
-RBA Dilemma Between Tight Labour And Debt
-The Next Index Rebalancing
[Note the non-highlighted items appeared in part one on the website on Wednesday]
By Rudi Filapek-Vandyck, Editor FNArena
Buy Restructuring Stories
Things might still be looking bright and upbeat, from an economic point of view, but each cyclical upswing shall be followed by darker times, and who knows, Australia might have another recession in the next few years ahead, as it has been such a long time since the last one.
In Credit Suisse's view, this might be a good time to start zooming in on those companies that are actively restructuring. Leaner businesses will be better positioned when the macro backdrop becomes less supportive, is the underlying thesis.
The strategy team at CS has selected 13 companies that fit the mould. On average, they trade at a -5% valuation discount vis a vis the broader market while offering a 4.4% average dividend yield (versus circa 4% for the broader market).