– The main problem right now in our domestic stock market is weak and declining results. Estimated earnings coming twelve months OSEBX index is down nearly 30 percent since last year’s summit. Norwegian industry is enjoying a serious resultatresesjon, turn Investment Director Stig Myrseth fixed in the latest weekly report from Dovre management.
Myrseth see little impetus from company results in the short term. The risks are primarily on the downside in the estimates as long as oil prices remain below $ 45.
– There is no telling how the oil market will develop in the future, but the signals are not encouraging. As long as oil prices do not climb over 45, we doubt that the last week rally on the main index is the start of something bigger. The reason is that earnings support simply is not good enough, writes investment director.
Oslo Stock Exchange is now trading at 13.9 times expected earnings coming twelve months.
According Myrset it does not mean that stock prices will be down. Two factors indicate a continuing high P / E. One is that earnings are below normal and will increase in the long term. The second is that interest rates on safe investments is becoming worse.
This week gives Myrseth Europris foothold in Dovre portfolio.
– With a 2016 P / E of 16 is not the stock cheap. We like, however, that the company delivers solid profit growth and analysts constantly raised our estimates. This year is projected bottom line to grow by a respectable 30 percent, writes Myrseth.
To share advantage will also speak on the countercyclical qualities. Myrseth recalls that sales growth has been particularly strong in Rogaland in the recent past which is probably due more price-conscious consumers.
At the same time he throws away American Shipping Company.
Dovre portfolio thus consists of the following shares:
• Kongsberg Automotive
• Storebrand
• Marine Harvest
• Yara
• Nordic Semiconductor
• Europris
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