Trading Idea # 4: BMW vs. Auto Sector

BMW has shown very good earnings with new EBIT record high margins. Recent release of 1-series and 3-series should maintain the momentum in the following months.

For a more compelete analysis on BMW, please read my Seeking Alpha articles:

http://seekingalpha.com/article/391641-bmw-a-cheap-play-on-u-s-and-china-luxury-auto-markets

http://seekingalpha.com/article/421021-bmw-strong-2011-results-driven-by-u-s-and-chinese-markets

To hedge the market and sector exposure, a short position on the European auto sector through the index SXAE (Bloomberg Ticker) is added.

Trading Idea #4: Long BMW vs. Short Eurostoxx Auto Index

 

 

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Posted on March 14, 2012, in Uncategorized. Bookmark the permalink. Leave a comment.

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