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:
Coface SA is a relatively simple contrarian “mean reversion” case:
- the company at the moment has some specific issues which in my opinion can be solved
- the industry as such is attractive (within the generally problematic insurance space) with significant barriers to entry and little exposure to interest rates
- Even in a bad case, the downside at current depressed levels is small. A conservative “mean reversion case” would indicate ~75% upside without assuming any growth
- no hard “catalyst” and fundamentally it could get worse before it gets better
- For exposure management reasons, NN Group will be sold and replaced by Coface
- As always the reminder DO YOUR OWN RESEARCH. THIS IS NOT INVESTMENT ADVISE !!!!
Coface SA is a French “Trade Credit Insurance” company and one of the Big 3 players of this industry which together have 80% market share.