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#SaxoStrats: Buying Daimler on cheap valuation
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Saxo Bank's Head of Macro Strategy Mads Koefoed explains his latest #SaxoStrat trade: buying Daimler.
Mads has noted that the stock appears to be undervalued and with a P/E just above 10 he believes the time is right for him to buy into expected increased production and profitability, despite a 20% rise in share price already this year.
Parameters
Key risks: Weaker-than-expected revenue growth (e.g. due to euro strength).
Entry: Buy at the market
Stop: Trailing stop of 6.60 and a step of 0.66
Time horizon: Strategic