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.
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:
Disclaimer: This is not investment advise. Please do your own research !!!
FBD is a local Irish Insurance company that I first wrote about in early 2015 when the stock look cheap. Luckily I didn’t invest back then as 7 months later FBD got already in trouble mainly due to under reserving plus another few skeletons in the closet. A month later, Prem Watsa came to the rescue with a slightly unusual deal structure.
What caught my eye now again (thanks to a friend mentioning the stock) is the relatively weak share price combined with super strong 2019 results and no bounce back from the Covid-19 crisis levels:
Disclaimer: This is not investment advice, please do your own research !!!
I made two smaller purchase over the last few days:
- Interactive Brokers at ~39,75 USD/Share, 1,4% of the portfolio
- Coface at ~5,70 ER per share, 1,5% of the portfolio
A quick summary of the ideas behind it:
And the next batch of (mostly) randomly selected German stocks. The only exception I do make for my selection is when one company owns a big stake or is related closely to another listed company. Then I’ll try to look at them in sequence. This time, 5 stocks made it onto the watch list.
426. MBB SE
Another listed “Mittelstands” holding company with a 317 mn EUR market cap. Looking at the stock chart we can see, that between 2015 and 2017 the stock price went up significantly, Since then the stock is on a downward trend, despite share repurchases:
Another 25er batch of German stocks based on my random selection criteria. This time the result are 3 new entries into my watch list.
401. Kampa AG
Insolvent “zombie” stock. Pass.
402. Dinkelacker AG