“All German Shares” series – Part 1

This is part 1 of the “All German Shares” series. As mentioned in the intro a few days ago and as a reminder:

  • I will look at the shares in random order, so it doesn’t makes sense to propose specific shares to me
  • the first round analysis will be very high level

Ok, so let’s start:

 

Nr. 1: DEMIRE (Deutsche Mittelstands Real Estate) AG – ISIN DE000A0XFSF0

DEMIRE is a listed real estate company focusing on “secondary” location commercial real estate objects, i.e. locations that are not “Prime”. The company has a market cap of 530 mn EUR and is stating an NAV of ~5,85 EUR compared to its latest stock price of around 4,90 EUR.

However I am personally not a big fan of stock listed real estate companies without a “special situation” angle and especially right now, owning a commercial real estate portfolio of non-prime location contains significant exposure to a downturn in the economy.

Looking at the P&L of the company it is also interesting that stated profits are basically 100% or more valuation driven.

“Pass” from my side and no deeper analysis.

Nr. 2:  IC Immobilienholding AG – ISIN DE0005632160

Tiny real estate company (market cap 15 mn) with problems and in the process of being squeezed out. Nothing to see for me “Pass”.

Nr. 3: Bio Gate AG – ISIN DE000BGAG981

Tiny, loss making company (11 mn market cap, 3 mn sales) with no growth. Not interesting. “Pass”

Nr. 4: Elikraft AG – ISIN DE0005254007

Small renewable Energy player with an interesting history (among others they ran a portfolio of parking sites), however squeeze out under way. “Pass”

Nr. 5: Instone Real Estate AG – ISIN DE000A2NBX80

A 660 mn market cap real estate company which specializes in residential real estate development. The 660 mn market cap compares to 250 mn in equity which one could friendly describe as “a lot of future profits are already priced in” or also “insane”. Not of interest to me, maybe as a short candidate ? “pass”.

Nr. 6: Orbis AG – ISIN DE0005228779

Orbis AG is a 60 mn Market Cap  IT Consulting company. They do have around 63 mn of sales for 2018 and grew double digits (partly via acquisitions), however the net margin is with ~3% pretty low (compared to for instance ~8% of my portfolio company Bouvet). Nevertheless, the company has significant net cash and the management owns ~30% of the company, so I will put them on my extended watch list for a deeper analysis at a later point in time.

Nr. 7: SHS Viveon AG – ISIN DE000A0XFWK2

SHS Viveon is a 16 mn EUR market cap Software company providing tools and services for Corporates to assess credit worthiness of customers. The company had troubles in past but seems to have made some progress. The stock price reflects already a lot of the turn around though. Watch list.

Nr. 8; AEE Ahaus-Enscheder AG – ISIN DE000A1PG979

<1 mn EUR Nanocap. “pass”

Nr. 9: Drägerwerk AG & Co. KGaA – ISIN E0005550602

One of my few German portfolio companies. I am not 100% happy with the position so “Watch list”.

Nr. 10: Park & Bellheimer AG – ISIN DE0006902000

Tiny (10 mn Market cap) brewery with little profits and significant debt (10 mn). Maybe interesting for local shareholders to get a free lunch + beer once a year, but for me “Pass”.

 

To be continued….

2 comments

  • Super Idee, ich starte ab Oktober auf meinem Blog etwas ähnliches.

    Zu Orbis: Bei IT-Dienstleistung ist eine Nettomarge von 3-5% nicht unüblich, auch die deutliche größere All-for-One Group liegt dort und bemüht sich seit langem vergeblich, die Marge zu steigern. Das Geschäft beim Kunden wächst kontinuierlich. So lange man genügend Personal finden und halten kann, ist das auch beim Umsatz des IT-Dienstleisters der Fall. Größere Sprünge nur über Übernahmen oder Zukäufe. Die blitzsaubere Bilanz hattest Du ja als Pluspunkt erwähnt.

  • Nice. Going to look at Orbis a little closer. 3% is indeed an insufficient margin.
    As it is a software company there might be a more interesting story buried.

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