Hanseatic Championship - Semifinal Results

Quest for top equity investments

In the semifinals, the winning companies are the ones that have stock price catalysts that are likely to trigger moves in the next couple of quarters. In addition, the catalysts are expected to be strong enough to make the stock outperform for a year or longer.

The results of semifinals 1 to 7 were published earlier in the week. Semifinals 8 to 13 delivered equally challenging contests, but with a higher success rate as 8 of the 15 stocks won:

Semifinals – Turnaround (5 -> 3):

8 Pandora vs Sixt vs Elmos: Elmos is difficult to compare to either of the turnaround pairings and therefore gets two chances, but here Pandora and Sixt win with strong catalysts coming through

9 AMG vs Sandvik vs Elmos: both AMG and Elmos are re-accelerating nicely, but depend on macro themes more than Sandvik, where mining capex has a long way to go, so order momentum strong

Semifinals – Highflyer (10 -> 5):

10 Fashionette vs Media&Games: M&G wins on serial acquiring/integration path constituting an ongoing strong catalyst; Fashionette also has triggers, but we prefer the gorilla is this space (see Zalando in semifinal match 2)

11 Cellink vs Vitrolife: both have convincing and strong catalysts developing now, CLNK and VITR win

12 SFC Energy vs SLM Solutions vs Suess-Microtech: Suess benefitting from semi cycle, while SLM super long-term potential due the most exciting technology of the three, but both lose to SFC which has the stronger current catalysts (eg Toyota Asian roll-out). SLM could be a future champion.

13 Sinch vs Kahoot vs Storytel: Kahoot outdoes Storytel as the ed-tech market accelerates, but both lose to Sinch whose serial acquisitions are filling product suite gaps, thus giving it even more leverage

As a result, our finalists from the “Turnaround” category will be Pandora/DK (jewelry), Sixt/D (car rental) and Sandvik/SWE (machine tools/mining), and in the “Highflyer” category Media&Games/D (gaming), Cellink/SWE (bioprinting), Vitrolife/SWE (fertility), SFC Energy/D (fuel cells) and Sinch/SWE (communications interface).

The HanseaticHunter

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