Friday, 6 November 2015

Some Thursday reporters: Adecco, Agrium, Celgene

Having already appraised Randgold Resources (link here) and Apache (link here) time to take a look at a few other companies that reported today (Thursday). 

Adecco - the Swiss listed recruitment company - induced me to comment on Twitter earlier: 

'2015 EBITA margin..strong at c. 5.2%..below target of > revenue growth is steady but not accelerating'

You can see this deterioration in the chart below: 

I last wrote on Adecco here when I observed that a sub CHF70 share price offered trading opportunities (which last time I took).  And with the share below this level now...

...I am starting to think along similar lines. Around a x10 EV/ebita multiple and a 3%+ yield plus an emerging market opportunity it feels opportunistic to me...

 Talking about opportunities I have been quite vocal about commodity-centric opportunities and even noted that stocks like Mosaic (link here) are starting to outperform after big falls. Another sector peer Agrium reported today...and their shares have also started to recover.

Their presentation document was worthy of a look with this chart of particular note.  Some fundamental support for the potash and related markets?

Finally, Celegene:

at c$120 level so many times over last year. Ok nos but valuation needs more

The troubles is a x20s EV/ebit valuation always requires more. In the space I still prefer Gilead (link here).  

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