In a few seconds, we can note that the Inch Platform list of the stronger European Large & Mid Cap highlights the tangible prevalence of mid-cap stocks compared to their blue chip rivals.
This trend confirms what has established itself in the European equity markets in recent years, namely of preferring investment in this type of shares compared to the more capitalized components of the main European equity indices.
The selection of all these European Large Mid caps, based on the trend and momentum of their daily and weekly time series, highlighted the following companies as the strongest stocks: Lagardere, Sesa, Trigano, Rational, Tinexta, Suez Environmental, Hellofresh, Sartorius and Zalando.
Subsequently, taking a cue from one of the latest publications of Prof. Giulio Sapelli: “Beyond capitalism. Machines, work, property “; we have calculated for each selected company the turnover per employee based on the latest balance sheet data.
Hence, we have obtained ratios that oscillate around an average of 0.34. The sample is not statistically valid due to its smallness; nevertheless, it helps us to understand the reasons why investors request some middle caps more than others: Sesa is the Italian stock that shows the highest score of 0.71 almost double the average.
InchCapital – Automatic Portfolio Builder
The company is active in multiple sectors, which are all characterized by technological innovations. Let’s go check out our INCH Automatic Portfolio Builder, concerning Large Mid Cap Italian basket. Among the eight model portfolios, we have selected 20 UCITS stocks flexible with automatic double hedge.
Sesa is in portfolio since Monday 1 June 2020 at an entry price of € 50.21 and ranks among the best components for weight. The model portfolio, however, shows a prudential approach on the Italian stock market, due to liquidity that has increased to 91.0% of the nav.
In Conclusion – SeSa, what we can make?
Either you sell Sesa by reducing the size to the proportions indicated in the portfolio or you have to monitor it with trailing weekly stop automatically updated by the INCH platform on the weekly charts, effectively minimizing the discretion linked to the investment.
You know, this is an example of what we mean by Hybrid Robo Advisor.
Have a nice weekend.