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Did you get the Khor and McElligot List? | JP Morgan Research Team!!


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JP Morgan shortlisted eleven stocks with European flavors to watch out for in December. (MKTW) Th elist includes Coca Cola Enterprises (CCE) stock while excluding COKE and KO which include most of thegrowing markets. For a second I thought the JP Morgan team had gone ballistic on the wrong stock  with Coca cola unlikely to suffer from the European wish wash. Similarly one wonders about the reasons for including Exxon Mobil in the list. Though 64% of its sales are in the US and only 30% in Europe, with the Oil prices high i could see it easily crossing the rubicon into better profits and getting rewarded for that.

To note, my reservations, and I am stuck with them having read Coca cola on a no show list, my reservations, again are two fold. Firstly some of these stocks are going to be down because of other reasons than Europe. For example CCE business transferred to KO and COKE companies for growing stems or CSC being a dead duck in the water with low renewalsin business from Public sector customers or with someone like EBay having lost their hold on the business model. Europe is at best an enhancement they offer to their investors and they were likely cut from many hedge fund lists because of other reasons first than Europe.

WAYNE -  DECEMBER 18: Ford CEO Alan Mulally me...

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My second reservation and that list is mostly pruned to One stock is for good performing stocks like Ford and Alan Mulally being put in the list despite 2 million in Sales in the US market in 2011. The other such stock as I mentioned somewhere in the opening commentary is Exxon Mobil that will survive with better Oil yields and war could well be a point of gain to them Of course with hands available we could turn around some individual factors and compare apples to apples, but I would say the list is almost a non starter with auto selection of scrips in a watchlist. Even rating aagencies are more discriminate than these Equity analysts putting out stocks with negative 2012 prospects, putting many 3-4 star rating stocks in there.

Among stocks one could agree with Waters Corp, Illinois Tool Works (ITW) and Edward Lifesciences make the cut while I would hold on Garmin without further research


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