I just wanted to share some of the ideas covered this week during several mentoring sessions.

In no particular order, with price taken on the day of the session:

1. Long Call 24 December 2019 UG

Peugeot

Cost option = 2
Target Stock = 32 => call @ 8
Risk reward = 1:3

Comments:
“2018 EOY call on 26 Feb
Record results in 2018
Long call (2h 20m!), verbose Chairman (Carlos Tavares, ex-Renault COO) spoke for 1h 20m
Peugeot has EUR12B in cash
Strong vision. Vauxhall becoming more successful and turned around Opel
Planned reduction in models
EPS 2019e: +20%
Industry Consolidation and European Consolidation
Negatives: Shareholder structure + French Govt”

Target validated by Technical Analysis and ATR.

2. Long Put 40 November 2019 HOG

Harley Davidson

Cost = 3.25
Target Stock = 28
Risk reward = 1:2.7

Comments:
” Sales 2019e down 4%
EPS 2019e -5%
High debt with Debt/Ebitda at 5.9x
Strong second hand market
Millennials little interest
Weak Q4 earnings call
Earnings 23/04/2019″

3. Long Call Spread 115-140 July 2019 NGVT

Ingevity

Cost = 5.7
Risk reward = 1:4.4

Comments:
“Sales 2019e +20%
EPS 2019e +21.1%
Automotive Technologies and Industrial Specialties
5 Product lines across 2 categories with 1 more product line acquired
PMI Sectors
Cyclical Risk => 1-3months strategy
earnings 01/05/2019″

If you want to know more about the investment process that lead to these idea generations, you can contact me on:

https://www.gregoiredupont.com/contact
https://twitter.com/GregoireDup
https://www.linkedin.com/in/gregoire-dupont-ab3885/

I hope it helps,
Gregoire

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