value and opportunity

A quick “healthcare round up” :
EGIS

Servier was succesful with its offer and secured more than 95% of shares. Just a few days later, they then called for the remaining shares. Lesson learned: Holding out does not make money in Hungary…

One remark: I hold the EGIS stock via the German direct broker DAB Bank. The service here is really really bad. I called them with regard to the squeeze out proceedings and they said the cannot do anything because they did not officially receive the information. They refused to look at the web site with the offer and help me in any regard. They already disappointed me more than once with trading European shares, especially French small caps.

Krka

Krka, the Slovenian version of EGIS reported very good Q3 results. Interestingly enough, all the growth and profit increase came from Russia. All the other areas are not doing that well.

Pharmstandard

Clearly, I was lucky to sell early after I detected my research mistake in September. Since then, the stock lost a further -16%.

Since then, there was quite some news flow from the company. The company reported Q3 numbers, which overall were not very good. The reason given was that the Government delayed auctions into Q4.

For the mentioned buy out offer, twice as many shares were tendered as were available. So the “acceptance” was only around 50%. So even if I would have qualified, I would have been only able to tender half of the shares.

Finally there is some news on the spin-off. For me the situation is still not clear, but on their website they mention that even GDR holders might get spin-off shares, although the might not be listed:

HOLDERS OF GDRs: GDR PROGRAM.

If the spin-off is approved and once NewCo has been formed, NewCo is expected to consider establishing a separate GDR program in which new GDRs would be issued representing the shares of NewCo distributed to Depositary on behalf of the Company’s existing GDR holders.

If decided on, the GDR program will be set by the time of the registration of the NewCo; GDRs will be unlisted.

The reason that I still follow the stock is that in my opnion this is a very good way to learn more about Russian stocks and how things work there. I am not sure if this will be rewarded but I find it highly interesting (and entertaining….).

Rhoen Klinikum

The entertainment factor at Rhoen Klinikum is hard to beat. Founder Eugen Muench gave an interview yesterday, where among other stuff, he suddenly wants to use the sale proceeds from Fresenius for a share buy back at 28 EUR per share. Suprisingly, he also mentioned not to sell any shares personally.

Clearly, one should be careful with everything Münch is saying. I will stick to my strategy and sell out if the “old” purchase price from the first deal is reached (22,50 EUR).