Stock Pick – May

Dear all,

Find below our stock pick for May:

  1. Novartis (NOVN.VX)
  2. Nestle (NESN.VX)

For the following reason:

Novartis (pharmaceutical company, Novartis):

Producing for example: Clozaril, Voltaren Diovan and Gleevec/Glivec. Additional agents include for example: Ritalin, Lamisil:

  1. 1Q15: Core EPS beat by 10%, as 3% sales beat translates in strong op leverage
  2. Pharma: Op Profit 11% and 14% ahead of Consensus
  3. Valuation estimated at 115 CHF
  4. Continuous dividend increase (2.74 estimate for 2015 vs. 2.60 2014)
  5. The stock decrease since by 5% since the 10th of April (all time high)

Nestle (largest food company in the world, Nestle):

Producing for example, Baby food, Nespresso, Nescafe, Kit Kat, Nesquik, Vittel and Maggi.

  1. A solid start to 2015, Q1 organic sales growth was a solid 4.4%
  2. Continuous dividend increase (2.25 estimate for 2015 vs. 2.20 2014)
  3. The stock decrease since by 5% since the 16th of April (all time high)

Let’s see how the market will go in the next couple of days, and maybe hopefully can make some shopping.




8 thoughts on “Stock Pick – May

  1. I love nestle chocolate. I cook with Maggi soy sauce only. I would love to buy nestle stock, however, I can’t buy it individually, I have to buy a European mutual fund cost me 1% in mutual fund management fee.


    • To bad that you are not able to invest in Nestle or any other Swiss shares, just for me to understand, what’s blocking you? is it the taxes, your broker etc?


      • I have 100 free trades per year on any company and ETFs listed in America , but no OTC. I can pay $45 for OTC like Nestlé.

        Also, I bought BMO Canadian bank that just bought out some American banks. When they pay dividend, I have to pay the withholding fee. So it’s not any advantage for me to buy Canadian banks even though I know Canadian currency will appreciate, and my share would worth more in the future


  2. Hey RA50,

    I just heared the great news about the superb quarterly(?) report in the swiss radio and thought instantly on your big stake in the UBS AG. Congratulation RA50 🙂

    Also I’d love to purchase Novartis, Roche and Nestle(in swiss franc), but unfortunately they’re very expensive. 😦

    Hopefully we’ll see a correction in the future at some point and I’ll not forget what to buy, when everything looks cheap then.

    Best of luck to you!


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