Some of the companies discussed on this blog over the years have reached – or come close to – their estimated intrinsic value. With the current market offering a number of compelling new opportunities (more on that soon), it makes sense to rotate out of the winners and redeploy the capital.
Two positions to write about:
- Basler Kantonalbank was first discussed in April 2021. The participation certificates have performed very well since then, reaching the price target. Excluding dividends, the capital gain amounts to roughly 67%. Including the steady dividend payments over the holding period, the total return is even higher. A nice outcome for a quiet, under-the-radar Swiss cantonal bank.
- Fresenius SE was highlighted in October 2020 at €34.06. The new management's strategic overhaul – simplifying the group structure, sharpening the focus on Kabi and Helios, and restoring margin discipline – has started to bear fruit, and the market has taken notice. The stock has gained more than 30% since the original write-up. There may be further upside from here, but at the current valuation the easy money has been made and there are better places to put the capital to work.
Congratulations to all readers who followed along on either name. New ideas will follow shortly – stay tuned.
Disclosure
The author has fully exited both positions.
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