1. Don't believe in extrapolated returns after a good market run basically - seems sensible to me.
2. Listened to a couple of automotive sector conference calls which inevitably focused on China:
Toyota - 'despite the market trends sales volumes have increased in the last two months’
But seem to be guiding for a fall in earnings
Q1 decrease in earnings for China but for FY ‘not as substantial a deterioration’
BMW - China – increasing capacity with the introduction of new models ‘ensuring we are running around 100% capacity utilisation’
Still expecting growth but not in the double digit range
Still expect to be in the 8-10% margin range ‘cannot rule out unforeseen incidents’
3. I wrote up some thoughts on Coach, Kellogg's and ADM - I passed on two but still believe one has value characteristics (link here).
4. Meanwhile am still chilling on Mosaic but observe some of the underlying value apparent. Keep watching for a sub US$40 print! (Link here).
5. Plenty of other interesting company data out including observations from Emerson Electric about how difficult it is out there...
...and after hours Disney shares down 5%+ as:
'On $DIS conf call where they have called out FX and slow cable subscriber issues as -ve impacts on FY16, countered by $6-8bn buybacks'
Write-ups to follow...