8 Comments
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searching4value's avatar

Nice write up. Interesting situation. Read Abt it several times and that might say sth...

SOTPs are tricky, as are multiples.

What about HQ costs in SOTP?

With blockbusters expiring soon, (much) lower mult warranted vs peers?

Due to high debt, FV derived by SOTP might be very sensitive to inputs

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Modern Investing's avatar

It is basically a holding co, that has a high likelihood of getting thrown into pieces. This would unlock value. The +4% dividend is also not bad. The problem is, that it’s german and that it has ties to the chemicals industry.

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mendo's avatar

What is the problems with ties to chemical industry? Cyclicality or?

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Modern Investing's avatar

The chemical industry has 2 problems:

1) Very high input costs — Energy inflation

2) Economic slowdown around the world

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mendo's avatar

What's your opinion?

Even tough I personally have my own opinion on this, it is very positive for the company.

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Modern Investing's avatar

My opinion on what ? The stock ?

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Co-Business-Owner's avatar

What about the pension provisions in your SOTP?

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Modern Investing's avatar

It should be all included in the Ned debt part. So debt + liabilities - current assets.

I will have to look, so that I can make sure its all ok.

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