All Danish Series – Grand Final and where to go next
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:
- 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.
- 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.
- Brdr. A&O Johansen: Cheap but interesting distribution company, peer to Solar.
- 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.
- GN Store Nord: Audio products (Jabra) and hearing adds. Profited form Covid Home office wave
- Netcompany: fast growing Nordic IT service company with some issues lately. But in general an inteesting play, something like a larger Version of Bouvet.
- North Media: Deep value play with some interesting assets
- Orsted: Leading Renewable Energy / Off shore company.
- SimCorp: Established Software company transforming from license to SaaS
- 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 !!!
Sceptical about Demant. Hearing aids will be sold over the counter in US. Puts (price)pressure on established producers of hearing aids
Interesting to see your results…I posted some time ago, that I went through these stocks some months before you. Our watchlist has many overlaps, but mine is smaller. I bought one company: A&O Johansen. I prefer them over Solar, and I think their businesses overlap, but there are also many differences. I’ve also been through the Norwegian stocks (you are right…”fish & ships” 😉 … only one company there was left that I closely watch, no purchases. Thanks for posting everything!
Look at Atea ASA, Nordic Bechtle with high ROIC and founder has bought 15 million USD in shares this year alone. This could be a Private Equity target and the founder was approached in the past.
Fantastic choice. Already interested about your thoughts regarding Aker BP, Tomra, AF Gruppen and SalMar.