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.

Cheers,

RA50

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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.

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    • 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?
      Cheers,
      RA50

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      • 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

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  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!
    Divrider

    Like

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