WEBVTT - Deep Dive: 10 Companies to Watch

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers podcast, your roundup of companies making moves in

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<v Speaker 2>the stock market harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some of the stocks on

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<v Speaker 3>the move today. I'll Paul swing alongside normal Linda.

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<v Speaker 4>I do want to turn to Tim craighead and he's

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<v Speaker 4>based in London. He's joining us via zoom. He's a

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<v Speaker 4>research director for content for Bloomberg Intelligence. And I'll look

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<v Speaker 4>at this story that's out right now and lots of

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<v Speaker 4>really interesting illustrations. But the story is called Banking Booze

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<v Speaker 4>and Double seven wheels. Ten companies to watch right now. Paul,

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<v Speaker 4>I have no idea where this is going. I'm so

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<v Speaker 4>curious just based off the headline alone. But Tim contextualizes

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<v Speaker 4>for us, tell us what.

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<v Speaker 1>Is this list? These ten ideas are all part of

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<v Speaker 1>a broader list of what we call focus ideas. Focus

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<v Speaker 1>ideas are where are analysts around the globe, cross regions,

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<v Speaker 1>cross sectors have high conviction fundamental points of view that

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<v Speaker 1>they think are different from what the market thinks, anti consensus,

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<v Speaker 1>and importantly, they're catalysts coming up that we think can

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<v Speaker 1>change market perceptions, and these ten all have important catalysts

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<v Speaker 1>coming up during the third quarter.

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<v Speaker 3>Tim What I like about these ideas, you know, because

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<v Speaker 3>people are always looking for ideas long and short, you

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<v Speaker 3>guys have the ideas. And what I really like that

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<v Speaker 3>this research format is you have the triggers. What has

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<v Speaker 3>to happen in order for this call to work on

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<v Speaker 3>a particular stock Aston Martin? What's the call here on

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<v Speaker 3>Aston Martin?

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<v Speaker 1>The call on Acid Martin. As much as I like

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<v Speaker 1>the cars, and obviously this is where the double O

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<v Speaker 1>seven reference comes from. They've got a really interesting new

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<v Speaker 1>lineup of vehicles, but they're short on V twelves and

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<v Speaker 1>notwithstanding the world of evs and all that sort of stuff,

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<v Speaker 1>the high end V twelves from Ferrari and Lamborghini are hot,

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<v Speaker 1>and you look at the inventory levels of Aston Martin

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<v Speaker 1>on the lots, they're too high. We think that there's

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<v Speaker 1>a capital infusion that's likely needed in coming months, and

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<v Speaker 1>so we actually have a cautious view on Aston Martin

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<v Speaker 1>from that perspective.

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<v Speaker 3>Booze Dagio, what's the story there, Dagio?

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<v Speaker 1>It ties in a little bit with a couple of

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<v Speaker 1>ideas here. You know, I mentioned Aston Martin. That's obviously

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<v Speaker 1>a high end consumer idea, and even though we're concerned

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<v Speaker 1>about Aston Martin specifically, the high end luxury vehicle market

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<v Speaker 1>is good. Similarly with the Agio high end Booze high

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<v Speaker 1>end spirits, they are the world's largest spirits manufacturer, is

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<v Speaker 1>doing relatively well. You know, their recent sales trends have

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<v Speaker 1>been robust. We think that's going to continue to show through.

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<v Speaker 1>There has been concern about things like tariffs and what

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<v Speaker 1>could be the impact, especially from a US consumer base.

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<v Speaker 1>We're less concerned and we're optimistic. Another consumer, higher end

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<v Speaker 1>idea you guys know and love in the States is

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<v Speaker 1>Dick Sporting Goods. You know, this is a classic good

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<v Speaker 1>old consumer's growth story where not only do you know

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<v Speaker 1>the store, but you might have been in one of

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<v Speaker 1>their new bigger formats where they have you know, that

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<v Speaker 1>much more kit. Their sales trends continue to be quite good,

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<v Speaker 1>despite concerns about what are tear's going to mean for

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<v Speaker 1>consumer here or there? So you know, those are all

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<v Speaker 1>those are all consumer ideas. There's certainly a common thread there.

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<v Speaker 4>You mentioned Dick said, I'm looking at easy Jet, which

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<v Speaker 4>of course we know is a low cost British airline

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<v Speaker 4>and we have a sunny outlook here. But what do

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<v Speaker 4>you think will be the most surprising call here for readers.

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<v Speaker 1>Yeah, it's interesting in this instance. Obviously this is not

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<v Speaker 1>the high end consumer. This is everyday consumer. This isn't

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<v Speaker 1>so much about the demand, which actually demand for travel

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<v Speaker 1>and experience continues to be pretty good. This is more

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<v Speaker 1>of a story on an operational basis. They're replacing a

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<v Speaker 1>lot of older planes with newer planes that have bigger

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<v Speaker 1>capacity and much more fuel efficient, So this is a

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<v Speaker 1>margin story. Easy Jet is historically lagged behind Ryan Air

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<v Speaker 1>at the other low cost carrier here in Europe. We

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<v Speaker 1>think that that's set to change.

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<v Speaker 3>Tim You live and work in London, but as most

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<v Speaker 3>of our listeners can tell, you're not an Englishman. You're

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<v Speaker 3>from the Great Commonwealth of Virginia. Talk to us. Are

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<v Speaker 3>the tourists? Is it as crazy in London this year

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<v Speaker 3>as it's been in recent years? What's the tourism factor

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<v Speaker 3>they're in London day?

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<v Speaker 1>The quick answer is yes, notwithstanding the fact that the

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<v Speaker 1>pound is actually pretty robust as of late, streets busy.

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<v Speaker 1>It's true in the city. Walk out the door here

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<v Speaker 1>Tuesday Wednesday, Thursday or the New Friday. It has been

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<v Speaker 1>a warm summer, but you know, this is also the

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<v Speaker 1>time for Wimbledon, and beyond that, it's just been busy

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<v Speaker 1>with people coming from all over the world, whether it's China,

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<v Speaker 1>whether it's the US. This seems to be a hot ticket.

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<v Speaker 1>Still feels pretty good.

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<v Speaker 3>You mentioned the pound sterling, but the with the euro

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<v Speaker 3>one seventeen that gets your attention.

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<v Speaker 1>Yeah, it does. From our perspective, this is a week

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<v Speaker 1>dollar story as opposed to stronger other currency story, and

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<v Speaker 1>we think that there's more legs to this. You know.

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<v Speaker 1>One of the big themes that comes up in all

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<v Speaker 1>the investor discussions or events that I'm at is is

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<v Speaker 1>the long standing premise of American exceptionalism. You pop money

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<v Speaker 1>in US bonds, US stocks and they take off, you know?

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<v Speaker 2>Is that holding the Stock Movers podcast from Bloomberg Radio.

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<v Speaker 2>Check back with us throughout the day for the latest

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<v Speaker 2>roundup of companies making news on Wall Street and for

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