Hanseatic Championship - Round 1, 7th

Quest for top equity investments

We have reached our final category, the "Highflyers". These are the stocks with the highest growth potential, but often with no earnings for the foreseeable future and high growth risks. The “Highflyer” category will have three divisions: consumer (incl. a few fintechs), health care and technology (incl. a few industrials):

• 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

• 6th: Turnaround / Industrials & Materials (34) --> completed May 30

• 7th: Highflyer / Consumer, incl. fintechs (18) --> completed June 1, see below

• 8th: Highflyer / Health Care (15)

• 9th: Highflyer / Technology, incl. industrials (34)

We will again use our growth/valuation matrix as a helpful tool to eliminate unattractive combinations. However, we will only be using sales growth versus EV-to-sales and not operating profit as many of these stocks are still loss making.

In addition, winners need to have a positive assessment of the following questions:

• Is there fundamental momentum expressed in both sales growth and margin potential?

• Are expectations of the growth path adequate given the risks?

• Are there additional specific risks that are too difficult to assess?

For the following stocks, we can give positive responses to these questions, hence the winners of Round 1 “Highflyer / Consumer” are:

1 Better Collective BETCO

2 Cliq Digital CLIQ

3 Delticom DEX

4 Embracer EMBRACB

5 Fashionette FSNT

6 Media&Games Invest M8G

7 Play Magnus PMG

8 Hypoport HYQ

9 Naga Group N4G

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