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):

chart_all_Stabilus

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”.

4 comments

  • 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…

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