value and opportunity

Finally !!! This post will cover the remainder of the German stock universe. These remaining “newish” companies only yielded two watch list candidates Overall, I need now to slim down the watch list significantly to maybe 25-30 companies that I want to keep on my radar screen, but that will take some time.

As for the next country series (as time allows): My next target will be Switzerland. First, it is a smaller market with only around 240 local stocks according to the SIX, Secondly, I have currently  3 Swiss stocks in my portfolio (Zur Rose, Richemont, Dufry), so I have some hope that there are more interesting stocks on the Swiss market.

So enjoy the last batch of German stocks !!!!

776. Centogene AG

Centogene is a “rare disease” reseacrh company that seems to be a mixture of German/Dutch locations. The company went public on the Nasdaq in November 2019 at USD 14/ Share but lost around -30% since then. The market cap seems to be around 250 mn USD. Unfortunately not my area of competence, “pass”.

777. Cyan AG

Another company that I have never heard of. Cyan has a market cap 92 mn EUR cap and seems to bae a Austrian/German mobile cyber security company. For some reason the long term CEO (since 2011) seems to have resigned by year end. Also Cyan seems to have done business with Wirecard and had to write down a 5 mn receivable.

At a first look, the company looks quite profitable and grows nicely, but a second look shows that operating cash flow is really bad as a lot of work is capitalized. This is really a big red flag and might explain the bad share price development since their listing in 2018.

So nothing to see here, “pass”.

778. Homes & Holiday AG

Homes & Holiday has been IPOed in June 2018 and since then the share price only went down and lost more than -80% since IPO. The 4,5 mn EUR market cap company seems to be a broker of holiday homes focused on the Island of Mallorca.

The company seems to have done an emergency capital increase in June and I couldn’t locate any reports on their IR page which is a bad sign. “Pass”.

779. GORE German Office Real Estate AG

GORE is a real estate company that went public in December 2019 (direct listing, no IPO) and specializes as the name indicates in offices. The company started as a subsidiary of another listed real estate company, Publity AG. The valuation back then at ~90 mn EUR is hard to reconcile with its NAV of 15 mn as per year ende 2019.

In June/July, the company bought a real estate portfolio against “in kind” new shares which lead to a nice spike in the share price, before than going back all the way down to the first price when they listed:

The company is now valued at 255 mn EUR, but for me this is clearly one of these very speculative real estate plays where I want to stay away as far as possible. “Pass”.

780. FCR Immobilien AG

And yet another newish, 101 mn EUR real estate company that IPOed in 2018. The company trades above NAV and I am not sure if they have any USP. “Pass”.

781. fashionette AG

fashionette is a recently IPOed online fashion company that is valued at around 190 mn EUR. According to its website, the company specializes on luxury fashion and had around 70 mn in sales in 2019 and around 7 mn EUR EBITDA.

Sales in the first 6M 2020 increased by ~15%, however profitability didn’t scale that much. Not sure why I should pay 20 times EV/EBITDA for them, especially as Amazon tries to break into this market and the majority holder cashed out in the IPO. However a smart move to IPO the company just right now, “Pass”

782. Interstahl Holding Handel AG

Bankrupt 0.9 mn EUR market cap company. “Pass”.

783. Jumia Tech AG

Jumia is one of the last Rocket Internet incubation stories. The 1.1 bn market cap company is often called th “amazon of Africa”. Rocket IPOed Jumia in April 2019 at a stock price of 14,50 USD in the US. From an early high at USD 40/share, the stock dropped to 2 USD in early March, before recovering as potential Covid-19 winner.

Jumia was the target of a short seller attack from Andrew Left who however just recently changed his opinion.

Fundamentally however, the company saw its GMV actually decrease for the first 6M 2020 which doesn’t imply such a great recovery. The company barely creates gross profit. So one needs a lot of fantasy to apply a 1.1 bn valuation to them which I am lacking. “Pass”.

784. Knaus-Tabbert

Knaus-Tabbert is a leading Caravan manufacturer that has been IPOed in late September in the wake of a Covid-19 driven caravan boom. The stock had been placed at 58 EUR per share at the low end of the communcated range and still trades at that level.

The company has been already public as “TIAG Tabbert” and had been del-isted in 200 and became insolvent in 2008.

The IPO consisted mainly of secondary shares from existing investors. The trailing PE seems to be at a level of 20 and the first 6M 2020 were weaker than the year before. I am not yet sure that this will be a long term growth industry, therefore I’ll “pass”.

785. PREOS Real Estate AG

PREOS is another Publity subsidiary with a hefty market cap of 1,62 bn EUR. Again it is not clear to me how this valuation is relating to the reported numbers that showed a NAV of around 300 mn as of year end.

The company has been IPOed in December 2018 and has also executed a few “in kind” capital increases. To me this whole construct looks kind of dodgy. “Pass”.

786. Philomaxcap AG

Philomaxcap is a 2,7 mn EUR nano cap that according to its website invests in Fintech, AI, Real Estate and Renewables just to name a few areas. The company is run by 3 Chinese guys and the share price increase by +200% in 2020. Too much for me, “Pass”.

787. PharmaSGP AG

This is another 2020 IPO with a market cap of 350 mn EUR. The stock was placed at EUR 31,50 but is now below that level. The company is an OTC pharmaceutical company that offers “chemical free” pills mostly against pain which are distributed exclusively through pharmacies.

The company has annualized revenues of around 65-70mn EUR but is super profitable with EBIT margins >30% with almost no required assets. At first sight, this almost looks too good to be true.

Just out of interest, this might be worth a deeper look. “Watch”.

788. Onoff AG

Onoff AG is a 26 mn EUR market cap company that listed in May 2019. The company seems to be active in process automisation in different sectors. The first price back then was 16,50 EUR, a level that they never really managed to surpass before the stock dropped in September to the current level:

This was most likely driven by a not so good 6M 2020 report. The company was still profitable but not much. Overall one of the more interesting IPOs, but nothing that would “Jump at me”. “Pass”.

789. Northern Data AG

Northern Data is a 507 mn EUR market cap controversial “hot stock” that is active in ….Bitcoin Mining !!! The company has surprisingly little revenues and a hard to understand P&L. The company is loss making and was target of a short attack. The main investor is Christian Angermayer, who among other things invests in Psychadelic mushrooms and of course Space missions.

In between he had time to introduce Wirecard to Softbank which netted him a cool 13 mn EUR from both sides. I agree that I am very jealous here but I’ll “pass”.

790. Nfon AG

Nfon is a 214 mn EUR market cap company that wen public in 2018 that offers phone services via the cloud for businesses. The company has annualized sales of ~65 mn EUR and could grow ~25% yoy in the first 6M 2020 and replaces fully traditional phone lines.

The company is loss making but has shown at least positive EBITDA in the first 6M 2020. They have quite decent reporting by the way.

Despite some volatility, the stock price is back to the IPO level:

Although I don’t fully understand their path to profitability, I think the company is interesting. Therefore “watch”.

791. SPVGG Unterhaching AG

Another (for me) surprising addition to the German stock market: SPVGG Unterhaching is a local Munich football club and so the second football stock in Germany. The company IPOed in July 2019 at a price of 8,10 EUR/share. After a brief spike, Covid 19 took its toll and the stock now trades at around 6 EUR, resulting in a market cap of around 24 mn EUR.

The company currently plays in the 3rd division and is rather at the lower end of the league at the moment. Financial reporting is slim to non-existent. Could be a fun hobby stock, but for me it is a “pass”.

792. The Grounds Real Estate AG

The Grounds is a 33 mn residential real estate company that went public in 2018 via a reverse IPO. The biggest shareholder being. Dt. Balaton.  For some reason, many of the newish real estate companies in Germany now have English names, not sure why. “Pass”.

793. Vivoryon Therapeutics AG

Vivoryon is a 89 mn EUR market cap Biotech/gene company that wants to fight Alzheimer’s disease. The company has no sales and has been burning ~6 mn in the first 6M 2020. They seem to have around 30 mn of liquidity left, which means their runway is another 2,5 years. I wish them luck but this is not my area of expertise, “pass”.

794. Via optronics

Vie Optronics is another 2020 IPO. The German company that produces mobile phone touch screens, IPOed just a few weeks ago in New York at USD 15 per share. The company quickly lost ~1/3 of its value, so the IPO was not a big success and the company has a market cap of currently 54 mn EUR. The company announced Q3 number just a few days ago.

Sales increased +40% yoy and they turned in a profit, although margins are super low. I also was not able to locate any “real” financial report. “Pass”.

795. Traumhaus AG

Traumhaus AG is a 55 mn ER market cap developer of residential real estate based on standardized designs. More than 87% of the shares seem to be owned by founder/management, free float is very small.

The company is profitable, however not cheap with a trailing 2019 P/E of 18. In general,  I think the concept is interesting as the cost of building houses in Germany (apart from buying the ground) is very high.

On the other hand, the business model is capital intensive, the reporting not great (no half year report in the beginning of November, little explanations in the annual report). “Pass”.

796. SLEEPZ AG

SLEEPZ is a 1,7 mn EUR market cap stock with frequent name changes. Company seems to have gone “dark” since 2019. “Pass”.

797. Tom Tailor AG

Tom Tailor is an insolvent 5,3 mn EUR market cap clothes retailer. “pass”.

798. Tuff Group AG

Tuff IPOed in March 2019 and has now a market cap of 7,5 mn EUR. The company is supposed to be domiciled in Frankfurt but is run by some Indian business men from wherever. The company is a offshore service provider to the oil and gas industry which these days is not exactly a high growth business. Reporting is bad, the 6M  2019 report is the most recent report. “Pass”.

799. Lehner Investments AG

Lehner Investments is a 65 mn EUR market cap asset manager based in Munich that I have never heard of before. The reporting is almost non-existent. Free float according to their website is only 1,2%. “Pass”.

800. Limes Schlossklinik AG

Limes is a 30 mn ER market cap company that listed in 2019 and operates private clinics especially for stress management which seems to be a growth business these days.

The company grew sales by ~+20% in the first 6M 2020, however they had to show a loss as the opened a new clinic. However it is really hard for me to understand how profitable their business could be. My experience so far with clinics is that it is a quite difficult business, therefore I’ll “Pass”.