(Boursier.com) — You can’t change a formula that works! The 10th edition of the “CIC Forum by Market Solutions” takes place this Wednesday and Thursday at the Pavillon Cambon in Paris. Over the years, the forum has become an essential meeting place for professional investors who come to meet companies listed on Euronext, but also on other European markets. The winning concept of previous years continues: connecting investors and managers, in this case nearly 140 issuers of different sizes and present in a multitude of sectors. We will also find unlisted companies issuing bonds.
From “micro” to “large”
As in past years, the European dimension of the meeting continues with a good quarter of foreign issuers. From the “micro cap” Enogia, 12 ME of capitalization, to the “large cap” like Nestlé, nearly 300 billion Euros, the investment universe is once again broad, for a total of 190 financial institutions and 400 European investors expected.
Two days of meetings in different formats, from “one-to-one” to “one to few”, as well as an additional day remotely to meet the managers of these companies but also the Global Research teams and of Corporate Access of CIC Market Solutions, strongly mobilized for the occasion. Also note 4 plenary sessions including: “AI in Practice: from dreams to reality” with Dr Luc Julia, Scientific Director of Renault, creator of SIRI. And “COP or no COP?” with Anne-Catherine Husson-Traore, Managing Director of Novethic.
“Investors come looking for specific stories in a stock picking process,” explains Alexandre Gérard, head of Equity Research at CIC Market Solutions. Within a double context which makes this meeting interesting: economic context where recession never stops arriving, while inflation never stops decreasing… And Market context, with wait-and-see investors, easily giving in to nervousness as proven by the violent reactions, during disappointments, on Alstom, Worldline, or Euroapi shares.
Market Context
Two pieces of data to be managed by companies and which raise a lot of questions! “In particular regarding the ability of companies to continue their good management of inflation. They generally managed to cope with it last year. This could prove more difficult from now on and many of them will have to arbitrate between the volumes and prices,” adds Alexandre Gérard.
On the other hand, while a certain number of supporting factors are faltering: American and Asian growth at half mast, the question of the level of turnover and that of the solidity of profit prospects also arise… Particularly after the delicate crossing point of the third quarter which gave rise to a certain number of disappointments, stock market sanctions to boot… including for some of the most resilient sectors in recent years, such as luxury.
For Alexandre Gérard, “if profit expectations are revised downwards, the valuation multiples must be considered: around 12 times on the Stoxx 600, compared to a long-term average of 13.5 – 14 times…”
Small and mid caps
Regarding small and mid-caps, which are very present on the CIC Forum by Market Solutions forum, and which are bearing the brunt of outflows and the absence of incoming flows, here again, the valuations are of concern. Illiquid and discounted, certain securities probably represent great opportunities at their current prices! Some are not mistaken with numerous stock market exits in recent months, resulting in bonuses on the stock price, because shareholder families or majority investors regret valuations that are too low in their eyes…
Numerous questions and interrogations and a particular market context: everything to make these meetings exciting during this CM CIC Market Solutions forum!