value and opportunity

All Danish Share – the Grand Final:

After looking at all 175 Danish companies, it’s time to consolidate. From the 175 companies, overall 34 made it onto the preliminary watch list which looks as follows:

The bright green marked companies, Rockwool, Royal Unibrew and Solar already made it into the portfolio. The ones that I shaded light green will be my additional “Top Ten Danish shares to watch” going forward. Here a quick summary why I chose them:

1. AP Moeller Maersk: A currently absurdly cheap stock (P/E of 1) but with predictable slow down in profits. Nevertheless a very well run company and in my opinion the clearest way to Decarbonization for any large shipping company.
2. Alm. Brand: A potentially interesting consolidation story in P&C insurance. Nordic P&C insurance is very profitable and if they execute their synergy plan, the stock would be cheap.
3. Brdr. A&O Johansen: Cheap but interesting distribution company, peer to Solar.
4. Demant: Hearing aid specialist that hasn’t been so cheap as it is now for a long time. Hearing aids seems to be  a long term stable and growing business.
5. GN Store Nord: Audio products (Jabra) and hearing adds. Profited form Covid Home office wave
6. Netcompany: fast growing Nordic IT service company with some issues lately. But in general an inteesting play, something like a larger Version of Bouvet.
7. North Media: Deep value play with some interesting assets
8. Orsted: Leading Renewable Energy / Off shore company.
9. SimCorp: Established Software company transforming from license to SaaS
10. Vestas: “Best of class” Wind Turbine maker. At some point in time they should be able to make money.

This selection is not “scientific” but much more a “gut feeling”. I’ll try to follow these 10 companies a little bit closer than my “big” watch list for the next months to come.

So which country to tackle next ?

One commentator proposed Belgium, France or Norway as the next country. Funnily enough, these three countries were actually my top 3 candidates. I finally decided for ….. NORWAY !!!

Why ? First, because I already have 2 Norwegian stocks in the portfolio (Bouvet, Aker Horizon). Secondly, as I think that Energy will be one of the big themes going forward, Norway as a country looks like being at the forefront of the Energy transition, so I might find some interesting players there.

According to Euronext, Norway has 282 listed stocks, so it might take a little bit longer than the Danish series. I’ll try to tackle them in batches of 15 each. Their should also be a lot of shipping (which I don’t like) and fish.

Stay tuned !!!