The dream portfolio
The Trustee: A perfect exposure
Five companies that have taken an undeserved beating recently are included in Di’s Ulf Petersson’s Dream Portfolio – Di’s share competition which starts on October 10. is putting his hands on a Swedish industrial company that he considers undiscovered. “When Europe is forced to invest 500 billion euros in electricity grids and other things to cope with the transition from Russian dependence, this exposure is absolutely right,” says Christoffer Ahnemark.Published: September 29, 2022, 3:46 p.mIn about a week, on October 10, the autumn round of Di’s share competition Drömportföljen starts. You can already register your portfolio – and so far around 2,500 portfolios have been registered. When Origo Fonder’s manager Christoffer Ahnemark has to choose five favourites, he particularly highlights the industrial company and ABB’s spin-off AQ Group. Europe’s crying need to strengthen the power grids in its quest to get rid of Russian dependence speaks particularly for the company, which has fallen over 40 percent this year. AQ Group has been drawn into the negative trend that has mainly affected small-cap listed companies, says Christoffer Ahnemark. He thinks it is remarkable that the company is not analyzed by any major bank, but that does not make AQ Group any less interesting. “We like to invest in undiscovered quality companies and we believe that AQ Group is one of those. The company has made a profit every quarter since its inception in 1994, which is a sign of quality. During covid, sales decreased but profit did not decrease nearly as much. So there is stability and it is a broad company that supplies various forms of electrical components, electrical cabinets and other things to growing industries. When we talk to the company, they say that customers want to buy even more, not less.”Christopher Ahnemark admits that AQ Group has been in a minor marginal slump. But that the order intake and sales growth has been strong.”Now they are growing by 20 percent, which is high for a company of AQ’s character.”The other four companies that are being picked up in the portfolio are the property company Diös Fastigheter, the broadband company Bahnof, the property service company Coore and the health company Biogaia.”What they all have in common is that they all have strong balance sheets but slightly different profiles,” says Christoffer Ahnemark. In Biogaia’s case, it is the company’s position as a world leader in the sale of probiotic products, food supplements containing lactic acid bacteria, and the patent on the bacterial strain Limosilactobacillus reuteri that makes the stock, which has lost around 30 percent this year, interesting. “Biogaia has come down strongly despite two reverse profit warnings, so therefore the mulitpls have also come down strongly. It has a net cash of 1.5 billion, an attractive business, a patented strain of bacteria that we believe will grow in the coming years. The market is growing in double digits and we think the company is misunderstood.” When Di’s analyst Ulf Petersson gets to choose five companies, all stocks that have taken a lot of beating in the near term – and where he hopes for a rebound. stability and spices where there is growth.”The companies he picks in his Dream Portfolio are the clothing company Revolution Race, the helmet company Mips, the transplant company Xvivo and the telecommunications companies Ericsson and Tele2 – all have fallen between 25 and 80 percent this year.”Revolution race is very cheap. Mips profit warning and has come down on it, Xvivo has gone down after the CEO tragically passed away. But just before that they had a capital market day which was very positive and has an interesting business,” says Ulf Petersson. Ericsson and Tele2 are two defensive cards that are not affected so much by the general economy, he reasons: “Tele2 is a non-cyclical company that has come down partly as a result of energy prices, but I think there are other companies that will have bigger problems with energy prices than Tele2”, says Ulf Petersson and continues: “The portfolio is a balance between high risk and low risk. But the overall theme is that stocks have done very poorly in the last month and could bounce up for that reason.” He does not rule out, however, that it could change as the competition approaches on October 10. “If it started today, I would have with these five.”
The dream portfolio – that’s how it’s done
The competition starts October 10.From September 26 until 30 October it is possible to register and create your dream portfolio at di.se/dromportfolienThe 10th of October the return in the registered portfolios is set to zero. Whoever has the highest percentage return in their portfolio when the competition ends on December 16 wins SEK 100,000.As a Di subscriber you have the opportunity to create two portfolios. You get SEK 1 million in a fictitious fund to dispose of. You can have up to 25 percent of your fund in cash.You can invest maximum 25 percent and minimum 5 percent of your cash in one and the same company. However, you must have at least 5 companies in your portfolio.You can buy and sell at any time during the day – but it is the latest change that applies until the stock market opens the following day. The exchange rate you get is the one that applies at the stock market opening.