THE “ALL GERMAN SHARES SERIES” – INTRO

THE "ALL GERMAN SHARES SERIES" ? INTRO

Posted on 9. September 2019 by memyselfandi007 17 comments Edit Post

Background:

My roots as an investor are domestic German stocks. For the first 10-15 years of my investing "career" I would only look at German stocks (with minor exceptions during the boom), only after some time I moved on to a more international focus. Even at the beginning of this blog in December 2010, the majority of our shares back then were still German.

These days, I only have a relatively small domestic stock allocation left (P. Hartmann, Draeger, Innogy) and mostly screen for international stocks.

One interesting thing happened in the meantime: I kind of lost my comprehensive knowledge about German shares. A lot of companies have newly been listed or disappeared and somehow I never ket track of what was happening. Also I didn't follow the good ones very closely.

Time for change: Looking at every German share

Inspired by Wexboy's great Irish Share Valuation series, I decided to refresh my knowledge on German shares in a new series. As a basis I simply took this Wikipedia list, which might not be completely comprehensive but will be a good starting point of 818 listed German companies.

The "analysis" will be a very simple screening process:

The selection will be based on a random order I look at basic information like Market cap, stock price chart etc. I will look at the last annual report and at the most comprehensive German stock

discussion forum "Wallstreet Online" to get an understanding of the company (by the way, if you digg deep you will find some posts from a guy called memyselfandi007 there, like this one from 16 yearsa ago:

 nd) and then subjectively decide if this is a company that is worth going on a watch list or not super nano caps and everything that looks like a pump and dump penny stock will automatically be a "pass" as well as pure shell companies or defaulted ones (there is a surprising amount of crap listed on German exchanges...)

There will be no valuation exercise in this first step. Maybe in a second step when I have my watch list.

I will post in "Batches" of 10 to 15 companies in irregular intervals, although I try to do a post at least once a week. This can take some time but on the other hand should also be a fun exercise (for a stock nerd lilke me at least...).

One final remark: The start of the series does not imply that especially now is agood point in time to invest into German shares.

ALL GERMAN SHARES ? PART 2

Posted on 16. September 2019 by memyselfandi007 5 comments Edit Post

This is part 2 of the series with the next batch of 10 stocks.

Nr. 11: Metrci Mobility Solutions AG:

Insolvent Nanocap (40K market cap). "Pass".

Nr. 12: Stabilus SA ? ISIN: LU1066226637

1.1 bn Market cap automobile and industrial supplier specialising in gas springs. Stock has been hard by the automobile industry downturn (-50% from peak stock price in 2018):

The company went public in 2014 and has more than doubled both, sales and profits since then. The company seems to be above average profitable (EBIT margin ~15%) because of a high market share in its niche and the products (gas springs) are not directly tied to combustion engines (electrical cars will have tailgates, too...). Trailing P/E in the low double digits. This is a stock I didn't have on my radar screen at all, so a clear candidate for my "Watch list". Nr. 13: Ceotronics AG: 12.5 mn market cap company specializing in communication systems for police, firefighters etc. Declining sales in the past few years and depending on large single contracts. "Pass". Nr. 14: Agrarius AG:

4 mn market cap "nano cap" stock. The company owns and runs farms in Romania. "Pass".

Nr. 15. Br?der Mannesmann AG

6 mn Market cap tool importer. Bad reputation, being looted by management since a long time. Could be a good target for an activist, "pass".

Nr. 16. China Specialty Glass AG

One of the many fraudulent "German Chinese" IPOs from some years ago. "pass".

Nr. 17: Phoenix Solar AG

Insolvent Solar company. "pass".

Nr. 18: Niiio Finance Group

12 mn market cap Reverse Takeover Digital-Blockchain-Robo something with little sales but big story. "pass"

Nr. 19: Stroeer AG

3.9 bn market cap company. Started as a billboard advertising company and then moved into digital advertising. For me the company was always a potential short candidate (self dealings of founder etc.) but the company managed to grow via a series of M&A transactions and investors seem to love it, even as they reported an actual loss in 2018.

I still think their numbers are mostly creative hot air aggressive (adjustments everywhere) but for this exercise I will simply "pass".

Nr. 20: Magforce AG

123 mn EUR Nano-Medtech company developing a cancer cure. Sales so far negligible.

To be continued

Not my area of competence, so "pass".

ALL GERMAN SHARES ? PART 3

Posted on 19. September 2019 by memyselfandi007 15 comments Edit Post

And the next 10 shares in this series:

Nr. 20: Magforce AG

123 mn EUR Nano-Medtech company claiming to develope a cancer cure. Sales so far negligible. Not my area of competence, so "pass".

Nr. 21: Bijou Brigitte AG ? ISIN: DE0005229504

This used to be actually one of the first stocks in my portfolio but luckily I sold out. It used to be a fast growing, super profitable chain of cheap jewelery and assesoires. These days, it still has 300 mn EUR market cap but competition and other issues make it a stagnating/shrinking business. Optically the company is quite cheap (high net liquidity) but there is little hope for any changes to the upside although they have started a share repurchase program. The orginal founder has retired and as often, the second generation doesn't have much to add. Nevertheless I would put them on my extended "watch list" but not with high priority.

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