Wednesday, December 13, 2023
HomeValue InvestingAll Norwegian Share part 15 – Nr. 216-235

All Norwegian Share part 15 – Nr. 216-235

And on we go witj another 20 ramdomly selected Norwegian stocks. This time, I found 5 of them quite interesting and put them onto the preliminary watchlist. Less than 40 companie sto go. Enjoy !!!

216. Cloudberry Clean Energy

Cloudberry is a 247 mn EUR market cap renewable energy company founded in 2017 and IPOed in 2020. In contrast to Sctaec, Cloudberry is only active in the Nordics. They develop and own and operate renewable power plants in Sweden, Norway and Denmark. Mostly Wind, but also some hydro assets and they seem also to plan to build some hybrid wind/solar parks.

One thing that stands out is that in contrast to many other players, Cloudberry sells it’s electricity “merchant”, i.e. at prevailling market prices. This led to high profits last year bu much lower profits in this year.

Maybe this also explains the very volatile share price and the negative value creation since the IPO:

They have quite some debt and covering increasaed interest payments with very volatile revenues is maybe not such a great idea. Nevertheless, I will keep them on “watch” for the time being.

217. Multiconsult

As the name indicates, this 275 mn EUR market cap company is a consulting company focusing more on “technical” consulting for Engineering projects. At first sight, the stock looks interesting with a relatively modest p/E of 12 and decent eturns on capital and margins.

Earnings are a little bit lower in 2023 than in 2022 but a look into the past shows that they already suffered a slump in 2017-2019. Currently, they are still growing and order books are full but there seems to be some levelling off and they have exposure to the the construction sector.

The stock has been declining already significantly:

Multiconsult is clearly a more volatile business than Bouvet, but I still find it quite interesting, therefore “watch”.

218. Arctic Bioscience

This is a 20 mn EUR market cap “biotech company developing unique pharmaceutical and nutraceutical products based on bioactive marine compounds.” IPOed im 202, the stock lost -60% since then. Of course these guys are loss making, so I’ll “pass”.

219. Prosafe

Prosafe is a 81 mn EUR market cap owner of service vessels for the offshore industry. The company seems to have been recapitalized in the previous years but still seems to be loss making and has significant debt. “Pass”.

220. Strongpoint

Strongpoint is a 52 mn EUR market cap “retail technology company that provides solutions to make shops smarter, shopping experiences better and online grocery shopping more efficient”. At first sign, the company rather looks weak than stron with declining profits and margins. “Pass”.

221. ABG Sundal Collier

ABG Sundal Collier is a 240 mn EUR market cap investment bank that trades at exactly the level from 20 years ago. The stock looks cheap but apart from the dividend, there doesn’t seem to be a lot of value creation. his is not unusual, as investment banking is often a “star” business with the bankers taking most of the pie via bonuses. “Pass”.

222. Carasent

Carasent, a 75 mn market company, that “was founded in 1997. In May 2018 the Swedish company Evimeria EMR AB, a company providing cloud-based medical record services to the health care industry, was acquired. Carasent’s strategy is to develop and expand digitalization that helps customers in providing efficient and qualitative health care services in the Scandinavian market.” The company seems to be (again) loss making and I think it is a super difficult business. “Pass”.

223. Circa Group

Circa is a 37 mn EUR market cap “biotechnology company that has spent 15 years and five pilots to develop and patent the first scalable LGO production process. LGO is a platform biomolecule used in production of pharmaceuticals, agrochemicals, batteries, graphene, polymers and more.” The comany has no sales and of course losses. “Pass”.

224. Oceanteam

Oceanteam is a 4 mn EUR nano cap loss making investment company. “Pass”.

225. Observe Medical

Observe is a 2020 IPO with 1 mn market cap that has created “Sippi®, the only digital urine meter with wireless data transfer to patient data management system and which also prevents bacterial migration which can lead to urinary infections”. They have some sales, are not growing and big losses. “Pass”.

226. Dolphin Drilling

Dolphin Drilling is a 150 mn EUR market cap company that, thank God, does not drill holes into Dolphins but describes itself as a “a leading harsh environment drilling contractor for the offshore oil and gas industry”.

The company listed/IPOed around 1 year ago and has lost around -50% so far. Performance seems to have improved but it is still loss making. “Pass”.

227. Vistin Pharma

Vistin PHarma is an 82 mn market cap company that describes itself as a “leading producer and supplier of metformin API (active pharmaceutical ingredients), used in medications for diabetes”. The company has actually become profitable in 2023 and increased sales a lot.

However, as I have very little knowledge on that sector, I’ll “pass”.

228. Borregaard

Borregaard is a 1,4 bn EUR market cap “biobased specialty chemicals company with one of the world’s most advanced and sustainable biorefineries. From natural and renewable raw materials, Borregaard produces advanced and environmentally friendly biochemicals, biomaterials and bioethanol that can replace oil-based products”.

At first sight, long term value creation looks very good despite the stock eing down from “Covid peaks”:

The stock is not cheap (~18x P/E) but is growing, has good margins and returns on capital. I have to admit, that I looked at Borregaard in the past at least twice. It used to be a kind of story stock with the story being “wood based plastics”. Originally, Borregaard was a plain vanilla paper mill but they seemed to have transformed themselves quite well.

This looks very interesting, therefore “watch”.

229. Nordic Technology

Nordic Technology is a 23 mn EUR market cap company, that despit its small size tries to solve major technological problems. So far that doesn’t have been very successful, as the stock lost around -2/3 since the IPO in July 2022. “Pass”.

230. Link Mobility

Link Mobility is a 420 mn EUR market cap mobile communication service provider that provides “mobile messaging and CPaaS solutions, based on volume of messages, for customer engagement serving enterprise, SME and government customers.” The company has been IPOed in October 2020 nad has lost, as many of its peers, around 2/3 from its IPO price.

Net income so far has always been negative, at least the company is growing strongly, with a growth of ~20% p.a. since IPO. These kind of cases are not for me, therfore I’ll “pass”.

231. Telenor

Telenor is a 14,6 bn EUR market cap “blue chip” that started out as a Norwegian Telco but these days is globally active, besides the Nordiucs mainly in Pakistan and Bangladesh.

As many other Telcos, Telenor pays a pretty juicy dividend but the share price hasn’t done much over the past 15 years or so:

Part of the problem is that Operating margins have been declining for the past 4 years. Telenors is also on the higher end of the valuation for the peer groupo at a P/E ~16 and an EV/EBITDA of 7,3x. As Telco is also not one of my favorite sectors, I’ll “pass”.

231. Gyldendal

Gyldendal is a 110 mn EUR market cap book publisher and seller active only in Norway. As to be expected, margins are very slim and decreasing. The company has an 86% shareholder. The valuation is quite high and it seems that the company is more of an Real Estate play. “Pass”.

232. ABL Group

ABL Group is a 132 mn EUR market cap “investment holding company, provides marine and engineering consultancy services to the offshore oil and gas industry and renewables market worldwide”.

The company has been growing rapidly over the past years and is profitable, however, they needed to issue many shares to achieve this. Nevertheless, the shareprice has developed quite well until recently:

The company s quite acqusitive and covers al kind of energy and offshore consulting. Currently 2/3 are Oil and Gas related, the rest ist Renewables and MArine. I think the company justifies a deeper look, herefore t goes on “watch”.

233. Nordic Semiconductor

Nordic Semiconductor with a market ap of around 1,8 bn EUR “is a fabless semiconductor company specializing in wireless technology that powers the IoT”.

The chart is quite interesting. The company has been IPOed into the boom in 2000 and experienced a spectacular boom during the Covid lockdown time:

The company became very profitable in 2021 and especially 2022 but in 2023, profits are already in a steep decline. The company never was cheap and currently trades at 35x trailing EV/EBIT. Not my area of interest. “Pass”.

234. Skandia GreenPower

Skandia GreenPower is a 3 mn EUR Nanocap that was IPOed in 2021 but has lost -95% since then. “Pass”.

235. Bonheur

Bonheur is a 760 mn marakt cap company that “through its subsidiaries is involved in a number of activities in Norway and internationally. The investments are related to the following main segments: Renewable Energy, Wind Service and Cruise.”

This sound like a quite interesting combination. The stock also looks very cheap based on current earnings that have increases substantially over the past quarters.

We can see in the long term chart, that a similar boom happened already pre GFC:

The company employs some debt and the P&L is very noisy, including investment gains and large minority stakes, nvertheless, I find the very interesting. “Watch”.



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