Corticeira Amorim - Christmas dip

On dec/24/2014, this stock gave a nice opportunity to buy more. Although the price has been around €3.00, stock took a dip till €2.77.
I didn't  bought since I'm long and wish to sell a bit higher in a buy&sell strategy in this low-free-float portuguese stock.

Take care!

Corticeira Amorim - buy

Today I bought shares of this company. I had an order way below market price but, as this title has low liquidity, I happen to buy 0.07€ below my price.
Today's shares will pay a 0.07€ Dividend so that's OK for me. I think I can profit both ways: sell the stock in a few day a few %% points above and by dividends.

I'll give the news here, soon.

Corticeira Amorim - buy & sell

Busy day: bought @3.10 in the morning and sold @3.15 right after lunch.

This is not my kind of investing, I'm a value investing fan. Although, I think there is an oportunity here I will try to profit with this.

I'll try to do this more times, so far 3 nice trades.

All values are comission & fees free.

Corticeira Amorim - sell

Today I sold my little position in Corticeira Amorim.
The net price was a bit over €3.14. Net profit : 3.6% (in less than 2 weeks)

I believe I can buy, again, at lower price and, in that case, I will be happy to became a shareholder again, since I believe the company is pretty cheap right now.

Have A nice weekend!

Corticeira Amorim - buy

I'm glad to say that I'm a Corticeira Amorim shareholder.
I bought some shares with final price €3.03, including fees and comissions.

By this price, I have:

P/B : 1.28
PER : 11.2
Yield : 3.96%

I think I made a good deal but this is a rather especial stock, since free float is low. I might sell the stock if price goes up fast.

Cheers!

EDP Renovaveis - Quoted in Euronext

Company information

EDP Renovaveis (EDPR) is the world leader in the renewable energy sector.

For more information, you can visit the Company website, Finance Yahoo or Euronext website

Its activity is developed mainly in Europe (60% of revenue) and in the North America (38% of revenue).

It operates in a very regulated market, so every possible gains can be strongly affected by the politics decisions in countries where it has business.

It's mais shareholder is EDP, and EDPR is a spin-off this last company, by regulatory obligations.

Shares

The company issued 872.308.162 stocks and the price is about 5.15€, which corresponds to a market capitalization of almost 4.500M€ (or $5.600M converted now)

Free foat is very short, just about 19% of all shares.

I will now make a quantitative analysis  of this stock.

2014 numbers

Now, the numbers (the values for 2014 are my predictions):

Revenue (2014) : 1.238.400.000€ (or 1.42€ per share ; CARG +6.9% last 4 years)
Book-Value (2014) : 7.05€ (CARG +2.8% last 4 years)
EPS (2014) : 0.09€ (CARG -5.1% last 4 years)
ROE (2014) : 1.2%

All that said, this is a very hard stock to study.
For me, it is overvalueded but that can change dramatically if ROE increases.

Dividends

This company dividends has been 0.04€ both 2013 and 2014, the only years that have been a dividend payment. Yield is around 0.8%, at today price.

My opinion

My numbers gives these streategies:

Bargain value : 3.45€
Good value : 3.75€
ROE 2% : 4.84€
ROE 3% : 5.95€

As I write, stock is quoted at 5.15€, so it has lots of risks investing now. I woudn't do it.

To my readers

What do you think of this analysis?
It was easy to read? Do you find it useful?
How would you feel investing in this company?

Disclosure

I don't have this stock in my portfolio neither will have it if the numbers don't chang dramatically.

Corticeira Amorim - 2014 - 3rd quarter - Update

From my last post about this company, the stock has gone from 2.95€ to 3.17€ (+ 7.5 %).
Unfortunately, I didn't bought it at that time.

The results of this company are now known.

For a 12 months period ending in September 2014, comparing with a 12 months ending in September 2013, we have:

Revenue : + 1.5%
EBITDA : + 7.5%
Profit : + 31.3%
Book-value : + 3.0%

Which means that, to a quote at 3.10€:
PER : 11.4
P/B : 1.31

Plus, the company will pay an extra dividend of 0.07€ per share from acumulated results.

I think this company can reach at least 3.85€ in the next 3 years (excluding dividends).
So, to me, this is still a good price to buy the stock and watch it grow.

What do you think about this company? Do you know it? And about my analisys, it was simply to read? Feel free to comment and/or contact me.

Disclosure

This company has very little free-float, so risk of liquidity is big.
I don't have this stock in my portfolio but I can add it these days.

Corticeira Amorim - Quoted in Euronext

Company Information

One of the most profitable Portuguese companies is Corticeira Amorim. It produces and transforms cork that is now a well known material for all kind of industries from construction to components of space-shuttles!

 You can learn more about it visiting the

- Website of the company;
- Yahoo finance information;
- Google finance information;
- Euronext website.

Geographically, revenue come from: Portugal (5%), Europe (61,7%), USA (18,3%), America (ex-USA) (6,8%), Australia (6,6%) and Africa (1,6%).

Shares

The company issued 133.000.000 stocks and the price is about 3.00€, which corresponds to a market capitalization of almost 400M€ (or $500M)

Free foat is very short, just about 10% of all shares.
Company have 5.5% of own shares.

I will now make a quantitative analysis  of this stock.

2013 Numbers

In 2013 the company had:

- Revenue : 542.5M€ ( + 5.5% CARG last 3 years) ;
- EBITDA : 78.1M€ ;
- Profit : 30.3M€ ( + 12.4% CARG last 4 years) ;
- Equity : 301.7M€ ( + 5.2% CARG last 4 years) ;
- Debt/EBITDA : 1.30

2013 Numbers per share

- Revenue : 4.08€
- EPS : 0.228€
- Book value : 2.268€

At march, 31, 2014

• the stock quoted 2.85€, 25% above the book value.
• the Graham Number of this stock was 3.34€. 

Dividends

The stock paid a 0.12€ dividend, which is a 4.2% yield on the march, 31, 2014, closing price. Payout ratio 53% :

My opinion

This stock was a clear BUY at the end of march, 2014, and now is trading in the range 2.85€/3.00€.

For me, the stock can reach 4.10€ in the next 3 years, depending on the dividend payout.

This is clearly, a buy oportunity!

To my readers

What do you think of this analysis?
It was easy to read? Do you find it useful?
How would you feel investing in this company?

Disclosure

I don't have this stock in my portfolio but I can add it if price come to the 2.80€/2.85€ range.

Portugal: the country and his economy!

Portugal is a little country, on the southeast of Europe.
Is the

• 105th country by area
• 78th country by population
• 40th country by nominal GDP per capita.

And one of the

• TOP10 countries by public debt in %% of GDP
• In 2013 has negative growth, one of the worst in the world.

Some useful data was released by a government agency and can be readed here.

Is not a very investor friendly to the ones who want to buy/hold stocks or trade because stock market is very small, fees and comissions are very high and it has not been a very clear market for most people, has recent news have showed. In next post, I'll talk about this.

The main index is the PSI20 (Portuguese Stock Index) and it has, by 2014/sept/30, a market capitalization of about 50Bi€. Not so much... More info can be read here.

Although, I think there are good companies that worth the money.

Thas it, next posts will be about all this!

Will you follow me?

Investing: what do I mean with that?

I am a huge fan of Warren Buffett. This means evaluate the companies in my own terms and believe my judgment to choose where to invest my money. This means, look at profits, equity and cash-flow.

The best book I know to start to start in this subject has been a huge reference over decades.

I also believe that to be able to have some success in the stock market, it does not imply having a big financial and/or mathematical knowledge. I think with some common sense and a relatively short time involved, it is possible to have good results with a small investor portfolio.

I think frequent trading is not suitable for a small investor/savers and is not the best way to manage the savings that decides to put into the stock market.

These are some main ideas I will develop in this blog.

First post - Presentation and main objectives

I live in Portugal. In this country, and generally in the southern europe, the return on capital is much penalized.

For me, it is ridiculous to tax capital gains in pension funds since this capital already have been taxed as work income is well caught. Doesn't sounds fair to me.

Investing in stock market is something that I think will be inevitable in the short term, because major changes are around the corner in my country. In the last bailout, our lenders made us make many changes and these will continue in near future. Particularly, pensions from Social Security will be much lower than it have been it the past.

But stock market is a really unknown to most people in my country. There are few companies and the free float in each company is low as well. The stock market is not risk-free, very far from it. But it becomes inevitable when most of us, at working age, will have the lower support from the State that it is now assured, particularly in terms of pensions.

I give for granted the creation of personal capitalization accounts (one pension fund for each person) managed by the Government, or by independente companies like banks or other indicated by savers, that will allow some income for retirement, serious illness and/or unemployment. As already do the current pension funds .

The risk can be mitigated if the investment in the stock market is done in a rational way.

This blog will focuses on financial issues and portuguese stock market, and attempts to demystify the investment in stocks.

More, it will seek to give information about portuguese companies to people around the world!

Will you follow me in my adventure?