I finally had some time (2 week Christmas vacation) to do some number crunching. I have been picking up interesting methods to value businesses related to their stock prices and finally I had time to go through all companies that are listed in Finland. This is my list of all companies that I find interesting based solely on their numbers.
This was my first time truly testing these methods and I hope I didn't make any big mistakes and I´m interested to see how these companies succeed in the next 1-3 years. I focused to find cheap quality stocks. So I looked at returns (to assets/equity/investments), EPS, P/E numbers and some more combinations.
I left out finance, real estate and banking related stocks. I also based my valuation solely on numbers and did not let my emotions or my personal future expectations to have an effect. Group 1 contains stocks that can be bought right away and Group 2 contains those that are also very interesting but seem to be too overpriced at the moment. Though that can easily change depending what numbers you look at and how you use them. I left out all those good companies that are clearly overpriced and only took in these that are closer to their true value and could actually go down in price enough to justify their purchase.
I give you my recommendations and links to their Financial Times pages and companies own home pages. You may easily do your own research to see if you find these stocks suitable for your portfolio. If you have any comments that you can actually base upon something I´d sure like to hear them! Feedback helps me to learn faster.
I will be picking up my own investments from these companies. I will also create a test portfolio to see how a portfolio of these companies compares to HEX index during future years. I am still in the middle of studying more about their operations and future plans so maybe I will leave some companies out of my final portfolio. If I would be to find something actually worrying I would surely remove it from this list. Certainly my research methods will change and evolve from this once I get a better understanding of what works and suits my style. And I know that my reasoning is lacking but that too will evolve by time ;)
I will be picking up my own investments from these companies. I will also create a test portfolio to see how a portfolio of these companies compares to HEX index during future years. I am still in the middle of studying more about their operations and future plans so maybe I will leave some companies out of my final portfolio. If I would be to find something actually worrying I would surely remove it from this list. Certainly my research methods will change and evolve from this once I get a better understanding of what works and suits my style. And I know that my reasoning is lacking but that too will evolve by time ;)
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| No matter how well you do your ground work, it still might be the same as letting a monkey do it. But it does improve your chances. |
Group 1
Nordic Aluminium designs, produces, markets and supplies demanding aluminium products and components for the electrotechnical, telecommunications, transportation, ship building, machine design and commercial construction industries.
Saga Furs Oyj is the quality auction house with the broadest selection of superior furs from strictly regulated European sources
Only company that is valued at perfect buying range when comparing market value to assets minus liabilities.
Only company that is valued at perfect buying range when comparing market value to assets minus liabilities.
NOT included any longer. I had a mistake with its numbers and by those it should have been kept far away from this list. Ixonos is clearly overpriced and its share price will clearly go down in time.
Ixonos is a creative mobile solutions company. We develop wireless technologies, software and solutions for connected devices and mobile services. Together with our corporate customers, we design products and services that let consumers enjoy inspiring mobile experiences.
Ixonos is a creative mobile solutions company. We develop wireless technologies, software and solutions for connected devices and mobile services. Together with our corporate customers, we design products and services that let consumers enjoy inspiring mobile experiences.
Okmetic is the most interesting one. From all companies it was the only one to clearly pass all tests.
Okmetic is a technology company which supplies tailor-made silicon wafers for sensor and semiconductor industries and sells its technological expertise.
Okmetic provides its customers with solutions that boost their competitiveness and profitability. Our silicon wafers are part of a further processing chain that produces end products that improve human interaction and quality of life. Our products are based on high-tech expertise that generates added value for customers, innovative product development and an extremely efficient production process.
Fortum's fault is that their current ratio is quite lousy compared to other companies on the list. Also by numbers it is also the weakest of the bunch and therefore it would be the first one I would leave out.
Fortum Oyj is a Finnish publicly listed energy company, which focuses on the Nordic and Baltic countries, Poland and the north-west of Russia. After acquisition of Russian energy company TGC-10 in year 2008, Western Siberia has become an important operating area for Fortum. The head of the company is Tapio Kuula, President and CEO. Fortum operates and maintains power plants and provides other energy related services. The company's main product is the production and distribution of electricity, heat and steam.
DECIDED TO DELETE EFORE because I was too loose with its numbers. It should have not been taken to this list. Still a good looking company but not great enough.
Efore Group is an international company which develops and produces demanding power products. Errr check their home page to see what kind of products they make and maybe, maybe you´ll understand.
Efore Group is an international company which develops and produces demanding power products. Errr check their home page to see what kind of products they make and maybe, maybe you´ll understand.
Comptel is an international, award-winning software company specialising in telecommunications. Our products and solutions enable telecom operators to deliver services to their customers flexibly and charge them effectively.
Comptel operates globally in the developing Operations Support Systems (OSS) market for telecommunications. We sell software licenses as well as services and maintenance related to our products.
Group 2
These are all great companies but their problem is that they all seem to be overpriced. Though that can easily change depending what numbers you look at and how you use them. If their stock prices would decline by 50% they would be superior purchases by numbers what I used. Before that day, if that day ever comes, you need to think about is their future bright enough to justify their purchase at their current price. I´ll only name these companies as this blog is already long enough ;)
PKC Group FT HOME
Marimekko FT HOME
Pohjois-Karjalan Kirjapaino FT HOME (Finnish only)
Orion FT HOME
These are all great companies but their problem is that they all seem to be overpriced. Though that can easily change depending what numbers you look at and how you use them. If their stock prices would decline by 50% they would be superior purchases by numbers what I used. Before that day, if that day ever comes, you need to think about is their future bright enough to justify their purchase at their current price. I´ll only name these companies as this blog is already long enough ;)
PKC Group FT HOME
Marimekko FT HOME
Pohjois-Karjalan Kirjapaino FT HOME (Finnish only)
Orion FT HOME
Listening to Reverend Bizarre
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Inflation is taxation without legislation. ~Milton Friedman