Email of the day on Kering
Comment of the Day

May 14 2014

Commentary by Eoin Treacy

Email of the day on Kering

Hello, I was wondering if Kering could be considered an Autonomy? 

Also I find it difficult to find past article regarding a certain asset. I was looking for the last articles about Areva, but when I search Areva I only find articles from many years ago and not the one from a few weeks ago, am I doing something wrong?

Eoin Treacy's view

Thank you for these questions which may be of interest to subscribers.  Kering, which was known as PPR until last June, represents an interesting portfolio of brands not least Puma, Gucci, Boucheron, Bottega Veneta, Alexander McQueen and Stella McCartney. As can be seen from the above list, the company has been refocusing from its roots in France’s colonies to promote its luxury offerings.

The company is globally diversified and has a solid record of increasing dividends. However, Puma is not Nike and Gucci is not Cartier so while these are globally recognised brands they do not represent the leaders in their respective sectors.Kering certainly has Autonomy characteristics but for this reason I did not include it in the list. 

Perhaps more interesting is Kering’s old colonial holding CFAO which it sold to Toyota in 2012. The company has operations in the majority of Sub Saharan countries importing cars, automotive parts, tyres and pharmaceutical products. It also has a diversified portfolio of manufacturing and construction businesses in Africa. Toyota holds 97% of outstanding shares which keeps it relatively illiquid and there is the possibility that it will eventually take it over entirely. The French listed share found support above €32 again this week and a sustained move below €30 would be required to question current scope for additional higher to lateral ranging.    

At present there is a difference between the keyword search and the tagging system. We are now tagging just about every article we write with specific buzzwords so that you can find relevant articles more easily. This winnows out random uses of a keyword that would be included in a keyword search. For example this article does not carry Areva as a tag but would appear in the keyword search. 

You can access the Tags via the Investment Themes tab at the top of the page and here is a link to the two most recent articles on Areva you were looking for.

Our programmers are currently working on merging the two searches to provide a more holistic user experience. 

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