All German Shares – Part 2
This is part 2 of the series with the next batch of 10 stocks.
Nr. 11: Metrci Mobility Solutions AG:
Insolvent Nanocap (40K market cap). “Pass”.
Nr. 12: Stabilus SA – ISIN: LU1066226637
1.1 bn Market cap automobile and industrial supplier specialising in gas springs. Stock has been hard by the automobile industry downturn (-50% from peak stock price in 2018):
The company went public in 2014 and has more than doubled both, sales and profits since then. The company seems to be above average profitable (EBIT margin ~15%) because of a high market share in its niche and the products (gas springs) are not directly tied to combustion engines (electrical cars will have tailgates, too…). Trailing P/E in the low double digits.
This is a stock I didn’t have on my radar screen at all, so a clear candidate for my “Watch list”.
Nr. 13: Ceotronics AG:
12.5 mn market cap company specializing in communication systems for police, firefighters etc. Declining sales in the past few years and depending on large single contracts. “Pass”.
Nr. 14: Agrarius AG:
4 mn market cap “nano cap” stock. The company owns and runs farms in Romania. “Pass”.
Nr. 15. Brüder Mannesmann AG
6 mn Market cap tool importer. Bad reputation, being looted by management since a long time. Could be a good target for an activist, “pass”.
Nr. 16. China Specialty Glass AG
One of the many fraudulent “German Chinese” IPOs from some years ago. “pass”.
Nr. 17: Phoenix Solar AG
Insolvent Solar company. “pass”.
Nr. 18: Niiio Finance Group
12 mn market cap Reverse Takeover Digital-Blockchain-Robo something with little sales but big story. “pass”
Nr. 19: Stroeer AG
3.9 bn market cap company. Started as a billboard advertising company and then moved into digital advertising. For me the company was always a potential short candidate (self dealings of founder etc.) but the company managed to grow via a series of M&A transactions and investors seem to love it, even as they reported an actual loss in 2018.
I still think their numbers are mostly creative hot air aggressive (adjustments everywhere) but for this exercise I will simply “pass”.
Nr. 20: Magforce AG
123 mn EUR Nano-Medtech company developing a cancer cure. Sales so far negligible.
To be continued
Not my area of competence, so “pass”.
value and opportunity 
Stabilus
2018: goodwill + intangibles = 442 m > 426 m = equity
debt wall: 06-2022 (51 m), 06-2023 (285 m)
The company better stay highly profitable.
Stabilus
2018: goodwill + intangibles = 442 m > 426 m = equity.
Debt wall: 06-2022 (51m) and 06-2023 (285 m)
What are the survival chances if the company encounters a 2-3 year stretch with no profit ?
Intangibles > Equity so what?
It tells you almost nothing. There are good companies with Intangibles and negative equity.
Leverage is less than 1x EBITDA, they generate ample cash even in a mediocre year. Yes, Auto exposure. They are not structurally challenged and well positioned. It is foolish to focus on those isolated figures.
Regardign Centroics: Deutsche Beteiligungs AG owns and Telio. A company that offers communications solutions for prisons. There might be an acquisition in the future – wild guess.
Brüder Mannesmann: going to read up on it for educational purposes.
Stabilus appears in Hermann Simon’s book „Hidden Champions – Aufbruch nach Globalia“, if of any interest to you…