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Garnry: Finding value outside European banks

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August 27, 2014 angus walker, arcelor mittal, arcelormittal, daimler, eiro, euro, europe, european central bank, eurozone, forecast, ladbrokes, peter garnry, peter garnry saxo bank, portfolio, portfolio strategy, portfolios, qe, quant corner, quantitative easing, recovery, s&p 500, saxo bank, saxo bank saxo tv, saxo tv, saxo tv trading floor, saxo tv tradingfloor.com, shares, shares 2014, shares and tapering, shares bt group, shares down, shares drop, shares drops, shares europe, shares nasdaq, shares or bonds, shares prices, shares up, sharesshares, sharessharesshares, sharessharessharesshares, sharessharesshasres, sharesshsres, shsres, shsresshares, stock, stock correction, stock decline, stock dividends, stock exchange, stock futures, stock market, stock markets, stock pick, stock pickers, stock picking, stock picks, stock price, stock price increases, stock prices, stock rise, stock sales, stock trading, stock trading 2014, stocks, stocks 2014, stocks markets, stocks to watch, stocks unstoppable, stocks v bonds, stocks v bondss, stocks”, strategies, strategy, trader idea, traders tale, tradingfloor.com, tradingfloor.com insights
Saxo Bank's Head of Equity Strategy, Peter Garnry, has seen a  shift in the selection of top equity picks away from European banks, for the first time since June. The latest version of the quant model has started to favour a more diversified range of companies. For the first time since the most recent model was launched, there isn't a bank in the top five picks.
Daimler dominates the current list, to a large extent based on the firm's market share in China, the other choices include Arcelor Mittal and Ladbrokes. Peter adds that "Daimler is expanding its operating margin, thereby further encouraging investor sentiment. The last 12 months' EBITDA at €16.1 billion is just shy of the peak in 2006 at €17.5 billion signalling that global carmakers have almost fully recovered in terms of profitability.