#SaxoStrats: BMW beset by double dose of woe
Shares in BMW are down 12% this year as investors have sold off the German carmaker due to a continuing slowdown in China and lately, the escalating VW diesel scandal.
Can VW really be the only one that cheated on diesel emissions? We find it very unlikely and suspect that other German carmakers may have disguised their true emissions rates too.
Sell BMW:xetr at market with trailing stop (stop price at €91 and steps of €1.50).
Key risks are Q3 earnings release (Nov 3), better China macro data, evidence of no emission cheating.
Non-independent investment research disclaimer applies. Read more