Smart Plc
Just some days after my writeup, Smart printed 6M numbers. On the constructive facet, with regard to Switch quantity, new prospects and deposits, Smart grew strongly between 18-37% as we will see on this chart:
Nonetheless, Revenue earlier than tax and margins went down:
Underlying Revenue, which solely assumes a 1% “take fee” on deposits elevated by 13%. That is clearly a mix of decrease gross curiosity incomes, intentionally low take charges (0,52%) and investments into advertising and know-how.
The inventory reacted initially fairly strongly, however recovered most of this over the following days.
To me this exhibits that almost all traders appear to grasp the primary story: Taking market share now by decreasing costs for purchasers to be able to maximise long run worth.
As a brand new proprietor, I’ll proceed to watch their progress. I purchased a couple of extra shares at round 9 GBP/share.
Rightmove Plc
Rightmove is an organization I’ve been following for a very long time. It’s a incredible enterprise that monetizes the obsession of the British with Actual property.
The corporate is insanely worthwhile however the share value hasn’t finished a lot over the previous 5 years:
A little bit bit greater than a yr in the past, Australian peer REA had tried to take over Rightmove at ~7,8 GBP per share however administration rejected the bid.
What I discovered particularly attention-grabbing was the big drop (initially -28%) after the newest quarterly replace. Analysts appear to have been particularly spooked by further deliberate investments into AI which might decrease Working revenue till 2028 earlier than development is anticipated to hurry up once more:
“Investing for future development shouldn’t be a foul factor however the scale of the market’s unfavourable response implies actual scepticism about its choice to place a lot cash into AI,” mentioned Russ Mould, funding director at AJ Bell.
“It’s doable to see how AI would possibly assist Rightmove function extra effectively, make better use of its rising quantities of information and improve person expertise on the positioning,” he added.
“Nonetheless, there may be clearly concern that Rightmove is leaping on the bandwagon in dialling up its AI spending.”
Plainly the general expectation from analysts is that any AI bills are instantly set-off by financial savings (i.e. firings) and nobody expects that earnings will likely be decrease at first due to AI investments.
That itself to me appears overly optimistic, particularly additionally reflecting on my private expertise in my day job.
Nonetheless, Rightmove is clearly additionally an instance that paying 40 or 50x NTM P/E on a top quality inventory typically results in disappointments. Proper now, the inventory appears extra pretty priced:
In any case, Rightmove is an attention-grabbing firm that I wish to dig in deeper sooner or later in time.
Eurokai KgAA
Eurokai got here out with two items of superb information. First, their 9M buying and selling replace confirmed that 2025 will as soon as once more be an excellent yr with sturdy development particularly within the Eurogate Phase:
And secondly, they introduced that they’ve a time period sheet with Container Shipper CMA CMG to promote 20% of the Eurogate Hamburg Terminal.
Eurogate (during which Eurokai holds 50%) owns the Hamburg Terminal totally. Loads of different Eurogate Terminals are already co-owned with shippers, ike MSC, Maersk or Hapag Lloyd.
My again of the envelope calculation signifies that the 20% may very well be price 100 mn EUR. This is able to imply 50% of that cash economically belongs to Eurokai and can circulation to a big extent into the P&L for 2026.
As well as, I feel it is usually a superb benchmark for what the entire asset pool is price.
The share value reacted just a little, however not by that a lot:
Bouvet ASA:
The third quarter is at all times the weakest one for Bouvet, however this years third quarter was particularly weak with EPS down ~10% yoy for the quarter.
In essence, personnel value grew quicker than gross sales. The inventory which was week already for a while dropped even additional,
9M EPS is kind of unchanged towards final yr however traders appear to have anticipated extra. The inventory trades at present at 15-16x EPS, which is kind of low-cost and signifies solely a restricted quantity of development implied within the present inventory value.
I suppose that perhaps some traders may be fearful of imminent alternative of consultants by way of AI, however truthfully I don’t consider this.
Bombardier
Final however not least, Bombardier launched Q3 numbers some days in the past. Operationally, issues went into the proper course. Gross sales, EBITDA, EBIt and so forth. are all up greater than 10%.
The spotlight clearly was that Cashflow improved considerably on this quarter which could permit them sooner or later in time to begin shopping for again shares:
Apparently, it took a couple of days till the market digested this and the shareprice went above the 200 CAD per share mark.