CREDIT SUISSE: Lehmann confident and convinced!

A lot has been written about the former - and future (?) - pearl CREDIT SUISSE; the critical comments are quite acceptable and justified, but we are not in the habit of exaggerated pessimism. Fortunately, the Saudis and Qatar are helping "us"; domestically, there seems to be an obvious lack of help, trust has probably been disappointed too often. In this country, people would rather criticize the Saudi National Bank for stepping in than "inject" the necessary capital buffer themselves. Item. In the context of our ad hoc report of October 27, we stick grosso modo to the pros and cons. The interview with Axel Lehmann on November 1 was gratifying; one finally senses some will to fight and conviction: "The bank will flourish again," is the core statement. "The capital increase makes CREDIT SUISSE 'rock solid' and helps to successfully implement the important restructuring. Already, capital inflows can be observed again." This, after the aforementioned doom and gloom (especially via frowned-upon social media) had led to unwelcome outflows. Lehmann continues: "Many customers have also expressed the view that they would return again..." Truth or just expedient optimism? Lehmann is also very confident about the planned sale of the securitization business (Securitizied Products Group); the plan is to still be able to retain parts of the earnings after the sale. The purchase of 250,000 CS shares by a member of the Board of Directors also has a positive effect!

Now it is time to digest the capital increase in the coming weeks (months). The conditions are already known and have been received rather favorably by the stock market; especially the reference price of CHF 4.07, a supposedly attractive midpoint. We do not want to go into further details here yet, as the approval of the Extraordinary General Meeting has to be obtained first. There will be clarity on this matter on November 24. Patience is imperative, optimism necessary. Target price remains: CHF 12!