Trade Idea – Bristol-Myers Squibb

On 30 May 2018 the position in Bristol-Myers Squibb has been closed at USD 53. The realized return before any taxes and fees is 2.02%.



Share price development in the holding period (in USD, source: Yahoo Finance)


Trade Idea – Bristol-Myers Squibb


Bristol-Myers Squibb is an New York-based pharmaceutical company, focuses on different segments. Back in the 19. century, its fundamentals were strengthened by the merger of two traditional industry players, Squibb Corporation and Bristol-Myers Corporation. The company was very active in acquisitions during the first decade of the 21. century. It completed more than a dozen of transactions. Reffering to its major developments, it was ranked by Forbes as the best drug company in 2013.

Due to the oversold nature of the stock, on 19 April 2018 long position has been opened at USD 51.95.


Historical share price development (in USD, source: Yahoo Finance)


Trade Idea – General Mills


General Mills is a multinational food processor and marketer with more than 160 years of history. Its brand portfolio includes several well-known leading US brands and numerous category leaders globally.

Its strategic target is to

  • grow in the cereal segment based on its US portfolio and via joint venture partners globally,
  • grow in the natural and organic food segments,
  • focus on high performing brands,
  • put emphasize on innovative consumer services segment.

Its recent history can be characterized by acquiring new targets and cost cutting initiatives. In Q1 2018 the company entered into the pet products industry, paying $8 billion to buy Blue Buffalo Pet Products, Inc.

Its share price performance has been under pressure due to the (i) increasing input/cost prices, (ii) rising logistic costs and (iii) developing consumer needs. However, the rest of the industry is facing with these challenges as well.


Historical share price development of General Mills (source: Yahoo Finance)

Key actual investment considerations:

  • from technical perspective the stock is significantly undervalued (traded below 20 14d RSI)
  • consistent dividend policy with more than 4% dividend yield
  • in line with analyst concensus, favourable long-term outlook

On 28 March 2018 long position has been opened at USD 44.03. The trade is bet on considering the company’s actual issues as manageable and addressable.

Link to the IR site of the company for background data and insights.

Trade Idea – Ford

On the basis of increased market volatily a short term focused trade has been initiated in Ford (which is one of the most oversold stocks currently) at USD 10.28 on 5 February 2018.


Historical share price development of Ford (source: Yahoo Finance)

From technical perspective the stock is clearly following a long-term downward sloping trend, but some return might be possible over a couple of days.


FY 2017 adjusted profit before tax results (in mn, source: Ford)

Performance of the automotive segment was driven by North America and the financial services gained a lot as well.

Link to the IR site of the company for background data and insights.