All German Shares – Part 4

Post number 4 in this series. This tiem a quick upfront remark what I do with the “watch list” that I create out of this: The watch list will be used to actually just watch these shares more actively and maybe follow up with a deeper analysis when time allows. In general I do think there is no time pressure with German shares. Germany has technically entered a recession and a lot of shares are still not cheap.

 

Nr. 30: Centrotec Sustainable AG – ISIN: DE0005407506

A 215 mn EUR market cap company with a very interesting product portfolio, i.e. specializing in energy efficient technologies for buildings. Majority owned by the founder, quite cheap (P/E of 12) and growing. Tailwind from new “climate saving” initiative from the German government which bumped the share price in the last few days. The company unfortunately is not very profitable (EBIT margin ~4-5%) despite the construction boom in its core market Germany.  I have also doubts how long the ccurretn real estate boom in Germany will last. Nevertheless one for the “watch list”

Nr. 31: Bit by bit Holding AG – ISIN: DE000A1RFML1

1 mn market cap nano cap with a restructuring in 2018. “Pass”.

Nr. 32: Paul Hartmann AG – ISIN: DE0007474041

This is one of my few German portfolio holdings. A 1.1 bn markt cap “boring” company specializing in health care related products. More here.

Nr. 33: H&K AG – ISIN DE000A11Q133

German Firearm producer (Heckler & koch), listed in Paris. Loss making but with an impossible valuation of 4 bn EUR or ~14x sales. “Pass” or watch list for short. WOuld be interested if a reader has more insight into this strange constellation,

Nr. 34: Max21 Management und Beteiligungen AG – ISIN: DE000A0D88T9

7 mn market cap small cap. Something with “e-Post” but loss making and stock price is in a tailspin. “Pass”

Nr. 35: Going Public Media AG – ISIN: DE0007612103

Tiny 2.4 mn market cap publishing company, among others the “Smart Investor” magazine. “Pass”

Nr. 36. Realtech AG – ISIN: DE0007008906

6 mn market cap IT/Software company. in the middle of a pivot form SAP consultant to software company. Net cash > market cap, but company is burning cash. “Watch”

Nr. 37: Rubean AG – ISIN: DE0005120802

Some kind of payment solution software for banks. only 100k sales and 5 mn market cap. “Pass”

Nr. 38: Sparta AG – ISIN: DE000A0NK3W4

Holding company active in special situations. Long term managment changed after another HoldCo, Balaton reached >50%. Balaton doesn’t have the best reputation in Germany. Current shareprice below NAV. “Watch”

Nr. 39: Schwabenverlag AG – ISIN: DE0007217507

Tiny 0.3 mn market cap publisher mahority owned by the church. Structurally unprofitable. “Pass”.

Nr. 40: Solutiance AG – ISIN: DE0006926504

Another renamed/reactivated company, now something with real estate management software. 10 mn market cap, around 1 mn sales. “Pass”

4 comments

  • I have never looked at the Paul Hart stock, looks like my type of company. They have steadily been paying down debt, that seems to be more or less done now, time to raise the dividend? Why has the stock performed so poorly in your view? Just unloved value stock? Why are there no analyst following this? the company is not that small..

    Would be great to get your views!

  • Regarding H + K: with a free float of about 8000 shares, the stockprice can be regarded as “fake news”. However I wouldn’t advise shorting (should you be able to borrow them), even if the company is technically bankrupt. You’ll have sleepless nights over it…

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