Another 10 randomly selected Swiss stocks. This time, two stocks made it onto the watchlist.
41. WISeKey AG
WISekey is a cybersecurity company with a market capitalization of CHF 102 million that went public in 2016. The company made some headlines ahead of its IPO as Kevin Spacey was one of the investors. The first stock exchange price was CHF 12 per share, but the share has since lost -90%. The company’s investor presentation manages to have 27 pages without a single fixed number.
The company claims to be in the midst of blockchain, IOT and AI. However, sales have decreased and losses are at the level of 2 times sales. “Consist”.
42. Banque Cantonal de Jura SA
Banque Cantonal de Jura SA is a local bank with a market capitalization of CHF 142 million. The share looks relatively cheap (P / E 14, below book value), but the profit has been falling for some time despite the growth in the balance sheet and the share price has done absolutely nothing in the last 12-13 years. Local banking with negative interest rates is no fun. “Consist”.
43. Neue Wert AG
New Value AG is a 2 million nano cap that seems to be investing in start-ups somehow. They seem to be looking for new capital, but they don’t get that from my side. “Consist”.
44. Bell Food AG
Bell Food is a company with a market capitalization of CHF 1.8 billion that is active in the food sector. The company’s core business was meat and sausage, but in recent years it has diversified into ready-made meals such as sandwiches and even salads.
The company showed very good resilience in 2020, increasing both sales and profits. The stock price looks boring, but with a clear long-term upward trend:
2/3 of company sales are made in Switzerland, which protects local meat producers through high tariffs. In recent years you have managed to switch the mix of meat and sausage to convenience.
The company doesn’t look expensive with a P / E of ~ 15-16, but plans to invest all of its cash flow in Capex in the coming years.
The company reminds me a little of Cranswick, the British equivalent, but I hesitate here as I see long-term headwinds in meat and sausage consumption, which still accounts for 80% of the business. So i will “consist”.
45. Züblin Immobilien Holding AGAG
Züblin is a real estate company with a market capitalization of CHF 97 million that mainly owns office buildings. The company is another company controlled by Russian oligarch Viktor Vekselberg (via a HoldCo in Panama), which is another reason not to look any further here. “consist”.
46. Bachem AG
Bachem is a 3.7 billion biochemical / pharmaceutical company whose share price has skyrocketed in the past 3 years after doing nothing in the past 20 years:
Bachem produces peptides and “oligonucleotides” that appear to be important ingredients for novel drugs. You had a fantastic 2020 with a 28% increase in sales and a + 55% net income. The EBIT margin reached 24%. However, as the share price rises, the company is trading at a PER of 46.
At first glance, it wasn’t easy for me to see why they are so successful now and what has changed, but I find the company interesting. Maybe her acquisition in the US in 2015 made that difference, but I want to know more. That’s why I put them on “Clock”.
47. HIAG Immobilien AG
HIAG Immobilien is a 860 million CGF market capitalized real estate company that invests exclusively in Switzerland. The company appears to specialize in larger developments and deals near the NAV. A dividend yield of> 2% makes it interesting for Swiss investors who are hungry for returns. “Consist”.
48. Von Roll AG
Von Roll is an industrial company with a market capitalization of CHF 305 million that focuses on power generation and power transmission. By looking at the share price, the company has clearly seen better days:
What I find interesting is that their business consists of a few lines of business related to the great electrification history, mostly insulation solutions for high voltage low voltage lines.
However, 2020 looked really ugly and they made a lot of losses over the years.
In the past, there appears to have been a battle for control between Vekselberg and the German Finck billionaire family, with the Fincks eventually winning and owning around 67% of the company. However, that hasn’t really improved the actual business.
Von Roll is clearly a difficult stock, but I put it on “Clock” due to the electrification angle.
49. Insurance of the Vaudois
Vaudoise Assurance is an insurance company with a market capitalization of CHF 1.4 billion, majority (2/3) owned by a mutual cooperative. Vaudoise is only active within Switzerland with the majority of its business in the life / finance business. The stock looks pretty cheap (~ 0.7x book value, 12x profit), but profitability is also relatively low. However, the EPS is lower than in 2014, which is reflected in the stagnating share price:
A dividend yield of> 3% may be attractive to local investors, but from my point of view there are no advantages to such a company / stock. “Consist”.
50. Zwahlen & Mayr SA
Zwahlen is a 14 million market cap manufacturer of steel pipes. The company was badly hit by Covid in 2020 and posted a loss. In retrospect, however, the company seems to have been struggling for a long time. The company is 70% owned by an Italian company. There is nothing to see here “consist”.