This time, only one of ten randomly selected stocks made it onto my watch list.
61. Alpine Select AG
Alpine Select select is a listed investment company worth CHF 129 million. The name rang and when I searched my own blog, I found her as one of the “co-investors” in the special situation AIRE KGAA in 2012.
Including its major distributions, Alpine Select has had a good track record in recent years. The share is trading very close to the NAV. Your portfolio now appears to be mostly hedge funds and, more recently, even a crypto fund.
This is not exactly my thing, so I will “consist”.
62. Elma Electronics AG
Elma is a company with a market capitalization of CHF 146 million that manufactures electronic components. The stock chart looks weird: after effectively flattening out for about 12 years before rising ~ + 50% in 2021:
The business as such is “moderately attractive” with EBIT margins of around 5%. I haven’t found out why the share price behaved this way. Since I don’t really have much idea in this area, I will “consist”.
63. Dottikon ES Holding AG
Dottikon ES is a CHF 3.6 billion market company that I have never heard of before. The specialty chemicals company went public in 2005 and its share price did nothing for 11 years before plummeting 12 over the next 5 years:
At first glance, the 2020/2021 annual figures look fantastic: sales + 25% and profit + 58%. The EBIT margin is fantastic at 28%. Interestingly, the company made losses until 2012/2013 and didn’t turn around until the next year. However, the EBIT margin had already reached 14% in FY 2015/2016. Since then, earnings have increased 5 times and the share price has increased 12 times, resulting in a current price / earnings ratio of 70 and an EV / EBIT of 60.
The company expects further growth in the future and has announced that it will invest heavily in new production capacities. I didn’t understand in detail what they do, but it seems to be an essential ingredient for something called “small molecules”. However, I have no real idea what makes Dottikon so special and whether their margins are sustainable.
One factor could of course be that the CEO of Dottikon is the son of EMS chemistry founder Christoph Blocher and that he learned his trade at EMS and the subsequent spin-off from Dottikon.
I think the company would be a great case study of how a “mediocre” company transforms into a growth superstar, but for me the current rating means that I am I “consist”.
64. Meyer Burger AG
Mayer-Burger is a company with a market capitalization of CHF 1.4 billion that is going through a radical “pivot”: The former manufacturer of machines for the production of solar modules is going “vertical” and has itself become a manufacturer of solar modules.
To do this, they took over the production facilities of the insolvent German Solarworld and started producing solar modules a few weeks ago.
Given the current global problems with the China-based supply chain, this sounds like an interesting idea and Meyer Burger claims to have better and more efficient panels. The stock has risen ~ 5x since its low in May 2020, but Meyer Burger hasn’t been a great investment in the long run:
The problem is that I can’t really judge how good your panels are and the current valuation of 1.4 billion for 90 million sales in 2020 and -65 million CHF loss already assumes a fairly significant recovery. Still I will “Clock” Here you can find out more about solar panels in general.
65. Siegfried AG
Siegfried AG is a specialist company with a market capitalization of CHF 4 billion that mainly produces ingredients for the pharmaceutical industry. I have owned the stock with relatively little success in “pre-blogging” times. As with some other Swiss pharmaceutical-related specialty chemicals companies, the share price has risen sharply recently:
Interestingly, Siegfried is much less profitable than its competitors (eBit margin ~ 9%), but profitability has increased. The current P / E ratio of ~ 70 seems to imply further increasing margins, although sales growth seems rather slow. At first glance, the stock looks less convincing than Dottikon, for example, so I will “consist”.
66. EFG International
EFG International is a private bank / asset management company with a market capitalization of CHF 2.25 billion. The company has been increasing its profits over the past 2 years but is trading at PE 20 times. The stock hasn’t done anything in the last 15 years and I personally don’t like the “private banking” model as the main thing in business is still getting around taxation for the very rich people. “Consist”.
67. Sulzer AG
Sulzer is a fairly well-known Swiss industrial company with a market capitalization of 4.3 billion. The company manufactures pumps, compressors and other heavy industrial equipment.
The company has a good name, but is unfortunately majority owned by the Russian oligarch Viktor Vekselberg, who automatically includes this in the “consist” Bucket.
68. Inficon AG
Inficon is a company with a market capitalization of CHF 2.6 billion, which appears to have specialized in technology related to vacuum processes. On the plus side, the company has decent margins, return on investment (20% plus) and is debt free. On the minus side, sales and profits are already stagnating in 2019 before Covid:
Despite this stagnation in earnings, the share price has doubled since 2018, resulting in a P / E of around 50. Much of the sales seem to be going into the booming semiconductor sector, but at this valuation level, I don’t think the stock is attractive. Maybe I underestimate growth opportunities, but still “consist”.
69. Interroll AG
Interroll, a company with a market capitalization of CHF 3.1 billion, appears to be “just another Swiss 10 digger” if you look at the chart:
This time it is not a specialty chemicals company, but rather a logistics automation company. Given the Covid-19-fueled e-commerce boom, it seems pretty logical that business should be booming, but interestingly, 2020 sales are actually below 2019 and 2018 sales. Profits have risen well and have grown from 2016 to 2020 doubled. The margins are very good (EBIT margin 18%) and the return on investment has risen steadily.
With a P / E ratio of 43, almost all Swiss “quality stocks” have priced in more significant growth. “Consist”.
70. Investis AG
Investis is a real estate company with a market capitalization of CHF 1.3 billion. The company looks cheap from a P / E perspective, but the bulk of the gains appear to be revaluation gains. “Consist”.