Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

Equity Bottom-Up

Dismal Stock Performance in 2017 and Since 2012<a href="https://www.smartkarma.com/entities/782" target="_blank" data-smartkarma-citation="entities:782:1">General Electric Co (GE US)</a> (“GE” or “company”) had a terrible 2017, with the stock providing a total return of -42.1%, compared to the S&amp;P 500 Index (“S&amp;P”) at 21.8%. Moreover, the company’s streak of dividend growth after the financial crises was interrupted with the dividend for 2018 slashed in half to an annualised rate of $0.48 per share, pushing it back down to 1999 levels. The management of GE is struggling with a conglomerate operating in multiple business segments, that possess neither technology nor market synergy. We expect continued under-performance in 2018 as well.We do not expect EBITDA to grow from current levels given multiple headwinds in approximately 50% of GE’s revenue base. We expect any gains in costs to be competed away in an over-supplied market for industrial infrastructure. Higher rates will compress EV/EBITDA multiples going forward.  Current valuation of GE does not reflect that eventuality yet. Compressed multiples could easily result in a single digit stock price for GE in the second half of 2018. Currently GE is priced for perfection, although it has proven to be a mere mortal since the financial crises. Simplistic bench-marking to industry peers appears to suggest a fully valued stock price, while ignoring myriad GE specific challenges such as accounting, governance, corporate control over reporting &amp; auditing, and declining product end-market. If, what's past is prologue then the company's accounting has set it up for more downside going forward. Stay tuned.

Dismal Stock Performance in 2017 and Since 2012General Electric Co (GE US) (“GE” or “company”) had a terrible 2017, with the stock providing a total return of -42.1%, compared to the S&amp;P 500 Index (“S&amp;P”) at 21.8%. Moreover, the company’s streak of dividend growth after the financial crises was interrupted with the dividend for 2018 slashed in half to an annualised rate of $0.48 per share, pushing it back down to 1999 levels. The management of GE is struggling with a conglomerate operating in multiple business segments, that possess neither technology nor market synergy. We expect continued under-performance in 2018 as well.We do not expect EBITDA to grow from current levels given multiple headwinds in approximately 50% of GE’s revenue base. We expect any gains in costs to be competed away in an over-supplied market for industrial infrastructure. Higher rates will compress EV/EBITDA multiples going forward.  Current valuation of GE does not reflect that eventuality yet. Compressed multiples could easily result in a single digit stock price for GE in the second half of 2018. Currently GE is priced for perfection, although it has proven to be a mere mortal since the financial crises. Simplistic bench-marking to industry peers appears to suggest a fully valued stock price, while ignoring myriad GE specific challenges such as accounting, governance, corporate control over reporting &amp; auditing, and declining product end-market. If, what's past is prologue then the company's accounting has set it up for more downside going forward. Stay tuned.

General Electric (GE US )- 25% Downside and Perhaps a Single Digit Stock Price in Its Future?

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Safran has finally announced its intention to merge with Zodiac Aerospace. A cash tender offer at &#8364;29.47 per Zodiac share represents a premium of 24.5% to Wednesday&#8217;s closing price. This is a deal that has been on the cards for most of this decade and will create the world&#8217;s third-largest aerospace supplier after UTC and GE. Safran announced last year that it wanted to focus on its core business of civil aerospace, and merging with Zodiac is consistent with that. However, there is a risk that integrating such a large acquisition will be a distraction for management from its focus on ramping up output of its existing business.

Safran has finally announced its intention to merge with Zodiac Aerospace. A cash tender offer at &#8364;29.47 per Zodiac share represents a premium of 24.5% to Wednesday&#8217;s closing price. This is a deal that has been on the cards for most of this decade and will create the world&#8217;s third-largest aerospace supplier after UTC and GE. Safran announced last year that it wanted to focus on its core business of civil aerospace, and merging with Zodiac is consistent with that. However, there is a risk that integrating such a large acquisition will be a distraction for management from its focus on ramping up output of its existing business.

France

Safran SA is a international tier-1 supplier of systems and equipment in aerospace, defense, and security. The Company sells engines for airplanes, helicopters, launch vehicles and missiles, landing and braking systems, nacelles, onboard electrical systems, optronics, avionics, identity documents, biometric equipment, smartcards, explosives detection, & trace analysis systems.

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Safran SA (SAF FP)

General Electric (GE US )- 25% Downside and Perhaps a Single Digit Stock Price in Its Future?

Dismal Stock Performance in 2017 and Since 2012General Electric Co (GE US) (“GE” or “company”) had a terrible 2017, with the stock providing a...

ANTYA Investments

A merger written in the stars

Safran has finally announced its intention to merge with Zodiac Aerospace. A cash tender offer at €29.47 per Zodiac share represents a premium of...

Edison Investment Research

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