May 2019 ideas

The idea is to have a regular meet-up to exchange investment ideas. 
The format is a breakfast near HB lasting one hour. 
Everything tradable for a retail investor is discussed. 
We are hear to hear, learn, possibly profit. 


We met for our first breakfast meeting on the 29/05 in Zurich.

Ideas developed were:

• Titres Participatifs

When the French government nationalised many firms in the early 80's, they were  starved of capital. To avoid a rights issue, the Titres Participatifs were invented. 

They are hybrid securities, paying a coupon, with a 15% withholding tax (special rule for these securities). 

The interesting Titres Participatifs are those of Renault and Sanofi. 

These instruments are very illiquid. 

• Monthly dividend ETFs

For those needing regular income, the Super Dividend ETF with ticker SDIV is a possible vehicle. 

The dividend yield is currently 9.5% with a monthly distribution.

Total assets are near $1bn. 

Its NAV has been up 3% since inception, which is great given the yield on offer. 

• Astra Zeneca

The upcoming clinical trial results presentations are Asco could be a catalyst for share price appreciation. The drugs are targeting early breast cancer sufferers. 

• Dufry

The consolidator in the duty free market, having gone from 5% to 25% market share of the open market, after buying for instance Nuance and Autogrill. 

Leverage is high at 3x ND/E but cash generation solid. Valuation fell towards 10x PE on a mix of leverage fears, losses on some contracts and Trade War angst.