Video

#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Strategic trade
Trade view / 12 May 2015 at 9:10 GMT

#SaxoStrats: Long Henkel on recent setback due to higher EUR

Head of Equity Strategy / Saxo Bank
Denmark
Instrument: HEN:xetr
Price target:
Market price:
Background

We are initiating a long core equity position in German consumer goods giant Henkel. 

Its Q1 results on May 7 were strong. Sales were up the most since 2010 Q3, driven by strong execution in Laundry and Cosmetics (2x market growth). 

It also boasts a high ROIC, above-market growth, decent valuation and momentum.
 
Management and risk description

Parameters

Entry: Buy market order (HEN3:xetr); trailing stop EUR7.20; trailing steps EUR0.72 .

Key risks: Higher EUR (it receives 65% of sales outside euro area), macro slowdown.

Henkel daily share price
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 Source: Saxo Bank. Create your own charts with SaxoTrader; click here to learn more.

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— Edited by Oliver Morrison

Non-independent investment research disclaimer applies. Read more

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