Nordic Contract Manufacturers

16th Sep '23 by abtan

5 comments 339 reads

For anyone who looks outside the UK you might be interested in recent presentations from a few Nordic Contract Manufacturers.

https://www.redeye.se/events/9...

Each presentation is relatively short (c 10 minutes) and it's amazing how bullish they all are at the moment, something undoubtedly fuelled by the reshoring of manufacturing from the East back into Europe.

Additionally it was interesting hearing from the CEO of Note AB (publ) (STO:NOTE) that the UK remains an important part of their future plans with what looks like excellent growth forecasts.

I should add that I own Kitron ASA (OSL:KIT) hence my interest here.

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About the Author

Abtan

Premium Member

5 comments

muckshifter

17th Sep '23

Almost all new investments I've made for the last four years have been outside UK, and I've had Kitron for about four years. Never found Redeye particularly useful to be honest. Most of my buys came from trawling Stockopedia then going to the company's website, where in most cases they have presentations and other information in English, once you find your way past sales stuff. The most difficult thing I find is that the only low cost shares ISA provider worth using in Europe and ROW is Interactive Brokers, but unless you use their Traders Work Station there are lots of shares which you cannot get. The other broker I use, and prefer, is DeGiro, but they don't do ISAs which is a pity now because of the changes to capital gains tax limits and dividend tax limits.

Note & SCANFL were others that I looked at but didn't buy, but I seem to have more Norwegian and Swedish shares than those from other parts of Europe. Thanks for the suggestions.

Alphaflight

17th Sep '23

There are quite a few world class Scandinavian companies, especially in the shipping sector.

The big Norwegian Agricultural company Yara International ASA (OSL:YAR) currently pays me a dividend of around 15%. As I believe food prices are likely to rise further over time, I would argue that fertilizer companies such as Yara are a must have right now.

abtan

17th Sep '23

Kitron ASA (OSL:KIT)

Hi muckshifter

I first bought Kitron ASA (OSL:KIT) in my ISA through HL 3 years ago and have added a few times since then.

It's been one of my biggest successes over the last few years with an overall gain of +c150% in GBP.

What makes this interesting is the following:

The share price has actually risen +c170%
Dividends (after withholding tax) have added +10%
FX has reduced my return by a whopping -30%

It's been a fascinating ride.

My only regret is that I wish that I didn't sell my first purchase back in 2017 (held for a few months only), which I bought right after joining Stockopedia when I was enticed by the high Stock Rank.

I'm not sure my returns would have been materially different if I had used a different broker, although I admit using someone like degiro would definitely have been cheaper.

---

On Redeye specifically I've enjoyed:

some of their podcast episodes (https://open.spotify.com/show/...)
some of their video content, like the one I have shared in this post.

On the latter I find it a nice way to find out about companies that I wouldn't generally come across.

---

I was really impressed by the presentation from Note AB (publ) (STO:NOTE), specifically their promise to never run out of capacity. This is in contrast to Kitron ASA (OSL:KIT) who are at maximum capacity right now.

The CEO of AQ AB (STO:AQ) was asked which of the other companies presenting he would buy shares in and as a "value investor" (his words) he would buy Scanfil Oyj (HEL:SCANFL) so that is on my watchlist now as well.

Thanks for taking the time to reply.

abtan

17th Sep '23

Hi Alphaflight

That's interesting, thanks for sharing your thoughts on Yara International ASA (OSL:YAR) - I'll be sure to take a look.

And yes, I agree with you on the Scandinavian market; there seem to be some remarkable companies in the region, which keep cropping up on my Stockopedia screens.

Some recent companies that I've taken small positions in are Betsson AB (STO:BETS B) and Lagercrantz AB (STO:LAGR B).

They're not high conviction yet, but I do like their current financials and prospects. Fingers crossed.

Cheers

muckshifter

20th Sep '23

One other similar company that I used to have, and did well in, was Incap (ICP1V) I think, and they have caught my interest again recently after a major customer hit them with contract delays and de-stocking, causing a big share price drop. Will watch for signs of recovery over the next few months.

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Nordic Contract Manufacturers

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Abtan

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