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ILikeBigBoobs

Is Anyone Else Investing In Germany/dax

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I'm fairly positive on the German market and it's DAX and hold about 8 DAX30 stocks. However I seem to be in a minority on the financial boards but wonder if anyone else on this BB has an interest?

Apart from the German work ethic and general efficiency the other positives I see are a change of Government due shortly, major companies renogatiating sensible agreements with unions, high dividend yield in relation to fixed interest and the possibility of a fall in the value of the Pound versus the Euro.

Anyone interested?

Edited by ILikeBigBoobs

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it's a market I'm interested in too!

Nice results from BASF this am - CNBC has in interview with their CEO at 10.45 if you have SKY.

Who do you invest through?

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it's a market I'm interested in too!

Nice results from BASF this am - CNBC has in interview with their CEO at 10.45 if you have SKY.

Who do you invest through?

After listening to the CEO I will be adding BASF to my investments later today!

Are you (or anyone else) into BASF?

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Do agree Germany seems like a good area to invest. Got some European funds (non-UK) mainly for some exposure to Germany (about 25% of funds), which have been doing very well. I don't ahve the time for individual stock picks any more though. Have been thinking about making a further investment - probably in a Germany ETF, although there don't seem to be any in the UK but please correct me if I'm wrong. Have been thinking about one of the US iShares ETFs.

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Guest muttley

I agree,and put some money into a German Growth Unit Trust only last week.Out of interest ILBB,which areas of the economy are best placed to take off? Which stocks do you hold?

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I agree,and put some money into a German Growth Unit Trust only last week.Out of interest ILBB,which areas of the economy are best placed to take off? Which stocks do you hold?

I wish I knew which areas will take off! I should make it clear that I am no expert :angry: However, I have heard experts talk about the vehicle manufacturers being hot, as in Volkswagen or Porche and I hold DainlerChrysler now that the lousy CEO is going (he ran the company into the ground - one couldn't imagine Mercedes being an unreliable make but they are now - hopefully they will turn this one round.

My favourite DAX30 stock is EoN (nice yield and they have lots of experience in the nuclear arena which may be where we will head), I also hold Deutsche Telekom, MAN , Deutsche Bank, Allianz etc. I also lik BASF and will add shortly.

737 - I use IMWeb for dealing in Euro stocks the charge £15 a trade but there's no stamp duty! I also hold Total the French oily, France Telecom and Eircom (for it's yield).

I would have liked to use an IT to invest in Germany but there isn't one is there? I refuse to pay 5% and 1.75% per annum for the Unit Trusts :( I wonder if there's a German Investment Trust or equivelent quoted on the DAX? I intend to email CNBC's lunchtime programme as they might know.Will advise if I hear anything - hopefully others will do the same.

Edited by ILikeBigBoobs

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I worked in Berlin for a couple of years (2000/1) and have been a strong Germanophile ever since, a change of government which is more pro-business plus the rise of countries like Poland and the Czech republic can only be good, labour costs are reducing and German exporters with some exceptions are as strong as ever.

I might have a punt on Siemens, I have some Euros sitting in a bank account in Paris and I might pitch them in.

Siemens are responsible for the comfortable new trains running out of Waterloo and other places. Share price a little surpressed (I believe) due to problems selling their handset business.

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siemens looks like a goodun to be in.

top-end car producers porsche/bmw I think will be ok too.

Here's how the FT views Siemens if it's any help!

Siemens

Published: July 29 2005 03:00 | Last updated: July 29 2005 03:00

Siemens has done all it could to damp relief over the sale of its ailing handset business. Quarterly operating margins from continuing activities tumbled to a mere 4.9 per cent. But Klaus Kleinfeld, the German conglomerate's newish chief executive, promised further steps and hard work to turn round remaining trouble spots.

Hard work is a worthy path to riches - especially when others are doing the toiling. Still, investors were probably too lenient, letting Siemens off the hook with a mere 3 per cent drop in its share price. It is now trading at about 14 times consensus earnings for next year. Combined with weak cash conversion, that is fairly hefty in absolute terms - but attractive compared with rivals, not least given Siemens' restructuring potential.

The trouble is that earnings forecasts for 2006 look increasingly vulnerable. Siemens has just demonstrated its capacity to disappoint when revenues and orders are solid. Imagine what the picture would look like against a worse macroeconomic backdrop. Room for further progress in Siemens' reliable money-spinners is limited - witness margin pressures, notably in its medical and power generation units. Business services and logistics have deteriorated further. Its remaining communication business is back in the red and has yet another reorganisation to contend with. It will probably take a while for Mr Kleinfeld's worthwhile efforts to translate into more than sweat and tears for investors.

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WRT siemens it wasn't the handsets I was interested in,it was power electrics.

they produce HT electric gear for national electricity grids(like the one the US will be building soon)....they may pick up some business from the US and probably quite a bit in eastern europe.

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http://www.bloomberg.com/apps/news?pid=100...k&refer=germany

Excellent results from E.ON beating analysts forecasts by 50% and there is also a little snip worth noting in the Bloomberg report;-

"The company's profit and share price may be bolstered should Germany's opposition conservative party win a general election next month. The Christian Democrats, led by Angela Merkel, have promised to scrap an agreement between utilities and the governing coalition of Social Democrats and the Green Party that will phase out nuclear power in about 20 years.

Germany's nuclear power plants are the cheapest source of power generation for utilities, so extending their lifespan would be positive for them, analysts have said. Matthias Heck, an analyst at Sal Oppenheim, said last week that abolishing the agreement may increase E.ON's market value by 6.2 billion euros. "

Edited by ILikeBigBoobs

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I too have become interested in German stocks, as I think they are generally undervalued compared to UK and US stocks, plus avoiding stamp duty is a bonus worth 1%.

I bought some E.ON stock this week hopefully as a low risk investment. I was also considering RWE, but E.on pays a higher dividend and looks less overbought than RWE (in my amateur view :unsure: )

Basically, I'm sick of watching my cash get eroded in a savings account by tax and bullsh*t interest rates which bare no resemblance to the REAL rate of inflation. Utility stocks might be a safeish way to avoid the rampant inflation (since these companies seem to be raising their prices at inflation busting rates, why not take advantage?).

Edited by tonification

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Did anyone have any conclusions about a cheap vehicle available in GBP for exposure to German industry? Any ETFs?

Not GBP but you can buy EWG.A ISHARES MSCI GERMANY, most UK brokers will let you trade them as long as you sign the forms for a dollar account (I think I'm correct in saying?). EWG.A Is made up of the top 52 shares and not just the DAX30 so it's performance will vary from that.

http://news.ft.com/cms/s/51c4e874-1b22-11d...000e2511c8.html

Reports that hedge funds are moving into the German market prior to the election.

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I think the hedge funds are banking on a merckel victory....it is still a close race and the EU as a whole is totally beaurocratic,which will impede progress.I'm still bearish on eurozone.

besides,they have a housing market vulnerability in so much as UK folks have been snapping up props in france/spain/eastern europe which will no doubt have a bearing in eurozone growth as a whole.

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I think the hedge funds are banking on a merckel victory....it is still a close race and the EU  as a whole is totally beaurocratic,which will impede progress.I'm still bearish on eurozone.

besides,they have a housing market vulnerability in so much as UK folks have been snapping up props in france/spain/eastern europe which will no doubt have a bearing in eurozone growth as a whole.

On your first point I agree that a Merkel victory will boost the market but German industry is restructuring whether or not Merkel gets in and is still relatively cheap. However, it is export lead and a faltering of the world market would hit share prices.

Secondly, the German housing market is much undervalued compared to most areas of the Eurozone. One result of a Merkel victory could well be an overhaul of the mortgage market in Germany which is expected to boost the property market dramatically (and probably the economy as a whole). How you join in that gravy train isn't that simple though a lot of international money is, apparently, already heading into German property.

IVG Immobilien AG Inhaber-Aktien o.N. is one possibly beneficiary http://www.ivg.de/en/index.html and I hold a few but it's already on a pretty heady PE.

Edited by ILikeBigBoobs

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Excellent article in MoneyWeek last Friday on the potential of the German property market and ways for a UK investor to get in.

In the UK (AIM) market SpeyMill (SYG) was pointed out as the one which may offer the best returns as it aligns itself with a Berlin property entrepreneur.

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Excellent article in MoneyWeek last Friday on the potential of the German property market and ways for a UK investor to get in.

In the UK (AIM) market SpeyMill (SYG) was pointed out as the one which may offer the best returns as it aligns itself with a Berlin property entrepreneur.

There''s still not been any official news from the company about it's involement in the German property market but the City and press seem to be getting whispers and the price has moved up 30% in the last five days :)

Shall I put it down to heavy buying by readers of this thread?

Edited by ILBB

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On your first point I agree that a Merkel victory will boost the market but German industry is restructuring whether or not Merkel gets in and is still relatively cheap. However, it is export lead and a faltering of the world market would hit share prices.

Secondly, the German housing market is much undervalued compared to most areas of the Eurozone.

...As would another bout of strengthening currency.....plus a few of the reforms that are needed will bring about a short-term rise in unemployment/slump in confidence.....much akin to the early thatcher years.

....the work they need to do is not on the export market but the domestic side,the jap's have already woken up to this.

I don't share the same enthusiasm for the french/german economies.....still expensive and over-regulated,with little in the way of work ethic in the case of the french!

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Excellent article in MoneyWeek last Friday on the potential of the German property market and ways for a UK investor to get in.

In the UK (AIM) market SpeyMill (SYG) was pointed out as the one which may offer the best returns as it aligns itself with a Berlin property entrepreneur.

And now up 45% in 10 days - still no news from the company though!

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