Giles Coghlan LLB, Lth, MA
Financial Source
Siemens is a German multinational conglomerate corporation and the largest industrial manufacturing company in Europe. It holds around a 7% weighting in the DAX.
Siemen’s latest earnings in November were strong. The revenue beat estimates at 20.57 billion vs the 19.13 billion expected. Also, orders came in very strong at 21.82 billion vs the 19.89 billion expected. The CEO also saw strong demand for hardware continuing as well as software.
So, should these strong earnings give investors confidence in its strong seasonal pattern? Over the last 25 years, Siemens has gained 15 times between November 23 and December 31. The average return has been 3.42% and the maximum loss has been 11.31%. The maximum gain was over 19% in 2009. Is this a time to buy Siemens or should the threat of a global slowdown and rising inflation discourage investors?
Major Trade Risks: The main risk here is that a deep recession impacts Europe and the US more harshly than markets are currently anticipating as well as any potential bad news for Siemens.
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