All German Shares – Part 6
ANother upfront remark: I publish these posts with some delays, so not all numbers are real time. Also in some cases some news will have been issued afterwards like with Nordex (see below). Sometimes I might miss that…..
Nr. 50: CD Deutsche Eigenheim AG – ISIN: DE000A168270
Struggling real estate developer with 3 mn market cap. “Pass”
Nr. 51: Nordex AG – ISIN: DE000A0D6554
900 mn market cap Windmill manufacturer. Unprofitable, structural issues. “pass”
Edit: I wrote this a few weeks ago. In the mean time the stock price has recovered a little bit as Spanish company Acciona increased their stake via a capital increase to > 30% and had to issue a fromal takeover offer:
But still not interesting for me.
Nr. 52: Q2M Managment Beratung AG – ISIN: DE000A0HL8J7
0.4 mn nanocap, loss making. Pass.
Nr. 53: Hermle AG – ISIN: DE0006052830
1.3 bn EUR market cap “hidden champion”. Produces precision machinery. Stock price has been running up to 400 EUR and is now back at around 260 EUR. Hermle is ususally a very cyclical stock but a clear candidate to “watch”
Nr. 54: Jost Werke AG – ISIN: DE000JST4000
400 mn market cap supplier for heavy truck and trailer prodcution. Initially owned by PE Cinven and IPOed in 2017 at EUR 27 per share. Stock went up to 45 EUR in 2018 but is now below IPO price. Clearly a cyclical business but one to “Watch”
Nr. 55: Curasan AG – ISIN: DE0005494538
Loss making health tech company with 10 mn market cap. Not my area of expertise, “pass”.
Nr. 56: Envitec Biogas AG – ISIN: DE000A0MVLS8
170 mn Renewables company, both producing Biogas plants as well as running them. Profitability increased. Nevertheless not my specialty and I also don’t fully believe that growing food in order to use it for energy is the best way to use solar energy. “pass”.
Nr. 57: Staatl. Mineralbrunnen Aktiengesellschaft Bad Brückenau – ISIN: DE0007251407
Tiny natural spring water botteling company. Market cap of 49 mn, however sales only 8 mn and no profit. Maybe a real estate play but for me a “pass”.
Nr. 58: Autowerkstatt Group NV – ISIN: NL0006380776
Dutch listed repairshop nano cap. Pass.
Nr. 59: Surikate Mittelstands AG – ISIN: DE000A0LR4W7
9 mn market cap holding company. 2018 loss making, very little investor information. “pass”.
value and opportunity 
Jost is misunderstood. It gets confused with other car suppliers to OEMs.
Some of the pros:
It’s products are ordered by the customer, not the OEM
Clear market leader with 60% market share accross its business
Asset light business model
Healthy and stable EBIT margins above 10%
Loss carry forwards of about €700 million.
Not directly impacted by the electrification of transportation
Service and spare parts component to its business – world wide service network adds to the moat
thanks. Do you know why they have such a big loss carry forward ? Where do the losses come from ?
Sorry, I wrote this from the top of my head. The tax loss carry forward is around €200 million. Still sizeable when paired with an EBIT of around 80.
The reason for the losses was the financial crisis. Cinven bought it in 2008 from Silverfleet and had to restructure during the financial crisis. They were sort of forced into an IPO in 2017 because time was running out.
No problem. The number just sounded quite large for the size of the company.
I bet you will put a feet on Hermle.
Hermle has been a champion for some years now. Issues going fwd: immediately the semi profit warning for 2019-20 (they anticipate 20% less business, already felt in their order backlog), and how cyclical their business is (if they produce great machines, some saturation may result long-term…. Is servicing of such machines installed base enough to keep a healthy income stream).
Let’s see
Hermle is currently not my first choice to be honest.
I like the expression “windmill manufacturer” (Nordex). 🙂