As mentioned in the comments on the previous post, I sold my Interactive Broker stocks. Why ? Mainly because of the following reasons:
- although I still think that it is a very good company, I reconsidered some of my assumptions after reading the “Chuck” Schwab autobiography
- Despite the fact that the Covid-19 crisis seems to have driven an increase in new accounts and trading commissions, the long term effects of lower interest rates (and margins) will be significant as interest margins are the main driver of profitability in the mid- to long term. My current scenario is that interest rates will remain very low even in the US for a very long time.
Another 25 randomly selected German stocks including four stocks this time who made it onto my “watch” list:
501. Fair Value REIT
Fair Value is a listed REIT with 104 mn EUR market cap. The portfolio includes a >50% share of retail objects which will be extremely challenged. The stock price has dropped a little but not much. “pass”.
502. Fortec Elektronik AG
I mentioned it in the comments, that I sold my Svenska Handelsbanken a few days ago. This was not an easy decision as I still like the company due to its unique culture. However I see the following short- mid- and long term issues:
We are getting close to having covered 2/3 of the German stock universe. Among these 25 randomly selected stocks, I have identified 7 which are at least worth watching, although none with high priority.
476. E.On AG
E.on has changed a lot over the last years.I had written about the company in 2013 and luckily I never invested.
This is actually the second autobiography of a founder with the surname Schwab that I review. After tire trader Les Schwab, this book is written by the founder and name giver Charles “Chuck” Schwab who founded the financial services company with the same name.
Disclaimer: This is not investment advice. PLEASE DO YOUR OWN RESEARCH !!!
Agfa-Gevaert was on my research list for some time now. Fellow blogger Undervalued Shares than triggered my renewed interest with their post from a few days ago and one of my best “Special situations” ideas ever was a Belgian company (Sapec).
I’ll try to summarize the part of the post that deals with Agfa:
- Active Ownership, a relatively new but successful German activist fund (Stada) has build up a position (~14%] and board membership (actually the Chairman) in Agfa Gevaert, the traditional German-Belgian film / imaging company
- Despite having some interesting assets, Agfa didn’t create shareholder value over a long time
- opaque reporting and a 1 bn EUR pension liability made it unattractive to stock market investors
- In 2020, Agfa managed to sell part of its Healthcare IT segment for 975 mn EUR
- Initially, the stock went up to ~5 EUR based on the first info on the sale but hasn’t fully recovered yet
Another batch of 25 randomly selected German stocks. This time I identified 5 candidates for my watch list amongst them.
451. Biofrontera AG
BioFrontera is a 151 mn EUR market cap specialty pharma company in the field of dermatology (skin cancer). The company actually has a product in the market and shows decent grows, especially in Germany and the US. The company is still loss making in the first 9M 2019, but the loss narrowed significantly. The “Corona Crash” pushed the stock price back to before sales went up: