Autostrada Q3, EMAK and Microsoft
In short, despite a small decrease in overall traffic, profits YTD increased in line with tarrif increases at around 9%, however with a lower increase YOY in Q3. In the quarterly report is mentioned, that the expected IPO of the South american participation seems to be delayed. The call it “examining all options”.
All in all, the valuation of Autostrada is in my opinion still a complete joke and represents one of my “highest conviction” ideas.
Yesterday was the last trading day of the subscription rights. Over the whole period since November 21st, a whopping 7.015 subscription rights have been trades, representing 35 mn new shares or 21.3% of the market cap after the capital increase.
Although the same subscription rights could have been traded several times, the amount more or less equals the complete amount of subscriptions rights of the minority shareholders. Based on public information, the payment date for the new shares is December 13th, I am however not completely sure when the exercise period ends officially. Anyway, this will be interesting to watch.
After the exercise of the EMAK rights, the portfolio would have a net investment quota of 95% which is to high for my comfort level. As announced, I will sell some positions. The first sale will be Microsoft. Although I think it is not a bead investment per se, Microsoft has become in my eyes some kind of “mainstream” value investment which doesn’t really fit with my more contrarian style.
So I will sell all Microsoft shares (2.5% of the portfolio) at today’s VWAP.
I will still have to find another 2.5% to sell….