Hanseatic Championship - Round 1, 5th
- HanseaticHunter
- May 28, 2021
- 1 min read
Quest for top equity investments
We are now half way through Round 1 having assessed 121 of 240 qualified stocks. The “Solid Growth” category is complete with 64 stocks advancing to Round 2. We now move on to the “Turnaround” category:
1st: Solid Growth / Consumer (40) --> completed May 17
2nd: Solid Growth / Industrials & Materials (34) --> completed May 21
3rd: Solid Growth / Health Care (20) --> completed May 25
4th: Solid Growth / Technology (27) --> completed May 27
5th: Turnaround / Consumer & Technology (16) --> completed May 28, see below
6th: Turnaround / Industrials & Materials (34)
7th: Highflyer / Consumer (17)
8th: Highflyer / Health Care (15)
9th: Highflyer / Industrials & Technology (35)
"Turnaround" stocks have to be evaluated differently from the “Solid Growth” category. We will not be employing our Growth/Valuation matrix, nor asking the two questions about momentum and margins. In order to qualify as a turnaround, a stock already has to show fundamental momentum and margin potential.
At this stage, the key questions for a turnaround case are:
How realistic is the rebound scenario expected by the consensus? Likely to extend beyond the 2021 corona-rebound? With what risks?
How much of that is already priced in?
Downside protection (net asset value) vs balance sheet risks?
For the following stocks, we can give positive responses to these questions, hence the winners of Round 1 “Turnaround/Consumer&Technology” are:
1 Bang & Olufsen BO
2 HanseYachts H9Y
3 Pandora PNDORA
4 Swatch Group UHR
5 Nordic Entertainment NENT
6 Comet COTN
7 Elmos Semiconductor ELG
8 GFT Technologies GFT
Next week, we will complete the "Turnaround" category and attack the most exciting category, the "Highflyers".
The HanseaticHunter
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