Valued at only 11.5 and 10.6 times the estimated profits for this year and 2021, the Carrefour share remains unfairly traded on the stock market despite the success of the strategy deployed by the teams of Alexandre Bompard. Stability allows you to expect a gain of 8 in just one month.
Up a little over 7% over the week, Carrefour shares benefited less than the entire CAC 40 (a little over 8% for the index) from the improved medium-term outlook linked to the imminent arrival of covid vaccines. This underperformance unfortunately reflects the lack of attractiveness from which Carrefour and the distribution sector in general suffer, it is true, to very strong competition in France, particularly in the hypermarket segment. It’s a shame because Alexandre Bompard’s teams are doing an excellent job focused on cost reduction, the rise of the distributor on the internet and on the organic niche accelerated in recent days with the takeover of Bio C’Bon. The quality of the third quarter, the best for more than 20 years, with organic growth of 8.4% of same-store sales in France is proof of this. All geographic areas and all store formats participated, even hypermarkets in France (+ 2.5%). The 2020 financial year promises to be excellent despite a very poor economic climate and Carrefour does not deserve to be valued on the sole basis of its own funds.
Reimbursed at 10 euros under condition
This is why one of the ways to make money on the case is to position yourself on stability. The strategy worked quite well during our last “stock market derivative advice” posted on this site on August 24th. Recommended at 7.47 euros, the stability issued by Société Générale (code: LU2088527952) with terminals located at 11 euros for the lowest and 16 euros for the highest should be reimbursed within a week (November 20) at 10 euros (currently worth 9.80 euros), a gain of 31% in three months. It is tempting to renew the operation by selecting a new stability still issued by Societe Generale (code: LU2088567404) but this time with a deadline set for December 18 and two limits between 12 and 17 euros. Given its purchase price and a redemption price of 10 euros, the certificate is likely to earn 8% in the space of a month. But on one condition: that the Carrefour share continues to evolve until then within the fluctuation zone defined by the two limits (12/17 euros). Otherwise, stability will lose all of its value.
Our advice: buy a Carrefour stability (code: LU2088567404); deadline: December 18, 2020; terminals: 12/17 euros; price: 9.26 euros; portion: 1.