Hi Giorgio, I'm glad you thought it was interesting. The EBITDA multiples are hard to select because there is no truly comparable firm out there, so I used my judgement. Almost all of the value is in Syncrolift... I felt that a multiple of 10x would be the minimum for such a strong business. Apologies that I can't provide you with a more scientific/rigorous explanation - would be eager to discuss your thoughts though.
Thank you, Wubbe. Definitely agree that this is the core thesis, keeping the various risks in mind. It would be strengthened with longer-term financials for Syncrolift, I'll update this post and let you know if I get those.
Hi Antonio, looking at the Euronext filings, Rasmussengruppen sold its entire stake (10.7%) at NOK8, so a 24% discount to yesterday's close. This large discount is likely because of the illiquidity of Nekkar's shares, with average volume of 56,650 or about €74k per day at NOK10.5; size of the sold stake at NOK10.5 was about €15m (would have taken forever to sell on the open market). No idea why they sold out, but on the bright side, one of the non-executive directors, surname Qvist, purchased about NOK5m worth of shares (€625k), which is a large chunk.
Hello Johan and thank you so much for your deep analysis.
Could you give me more colors about how do you choosed the Ebitda multiples to use in the SOTP valuation please?
Cheers ;)
Giorgio
Hi Giorgio, I'm glad you thought it was interesting. The EBITDA multiples are hard to select because there is no truly comparable firm out there, so I used my judgement. Almost all of the value is in Syncrolift... I felt that a multiple of 10x would be the minimum for such a strong business. Apologies that I can't provide you with a more scientific/rigorous explanation - would be eager to discuss your thoughts though.
Nice article. Will do some more research on this company.
Do you agree that you pay a fair price for Syncrolift & get everything elso for free?
Thank you, Wubbe. Definitely agree that this is the core thesis, keeping the various risks in mind. It would be strengthened with longer-term financials for Syncrolift, I'll update this post and let you know if I get those.
Hi Johan,
Do you know the reason for the massive drop in the stock market today?
I can´t find news.....
Hi Antonio, looking at the Euronext filings, Rasmussengruppen sold its entire stake (10.7%) at NOK8, so a 24% discount to yesterday's close. This large discount is likely because of the illiquidity of Nekkar's shares, with average volume of 56,650 or about €74k per day at NOK10.5; size of the sold stake at NOK10.5 was about €15m (would have taken forever to sell on the open market). No idea why they sold out, but on the bright side, one of the non-executive directors, surname Qvist, purchased about NOK5m worth of shares (€625k), which is a large chunk.
Thanks Johan for the information. Could be a good time to start a position :))
I have to study the company better. It seems undervalued at this price.
I highly value the quality of management. Given that the CEO is new, it is not easy to understand his competence. Only time will tell.
Happy to help. Let me know if you want to discuss anything in DMs.