All Norwegian Stock, Part 17 – No. 236 – 255

So one more post on Norwegian stocks before Christmas. Another 20 random stocks with some Sparebanken, early stage VCs enough, but also 4 companies that made the watch list.

EDIT: Sorry, I got the numbering wrong, it’s actually post number 17 and company 236-255. So less than 20 left…

236. Standard Extray

Standard Supply is a company with a market capitalization of EUR 78 million, which was founded and will go public in 2022. It owns several ships that supply oil rigs, and according to the presentation, they were bought cheaply. Since I have little knowledge of the sector, I will “fold”.

237. Romerike Sparebank

With a market capitalization of EUR 29 million, Romerike is one of the smaller savings banks. Like other stocks, they look cheap and pay a decent dividend, but as with others, I will “fold”.

238. Desert management

That’s a 24 million market cap “A climate technology company specializing in the reclamation of degraded land and the conversion of desert sand into fertile soil. The patented LNC (Liquid Natural Clay) product is a liquid clay mixture that allows sand and degraded soil to retain water and nutrients.”

This 2021 IPO only lost -50% of the IPO price, it has almost no sales and losses. It really sounds like an interesting concept, but it’s actually a case of an early-stage VC with a very uncertain outcome. “Fold”.

239. Romsdal Sparebank

No wonder this savings bank with a market cap of €20m is cheap, pays decent dividends and even less surprisingly “fold”.

240. LUMI Group

LUMI Gruppen, with a market capitalization of EUR 67 million, “is Norway’s leading private education provider founded in 1989. Today, Lumi Gruppen consists of two main divisions; Sonans Utdanning and Oslo Nye Høyskole. Sonans Utdanning is Norway’s market leader in private candidate exam preparation courses, and Oslo Nye Høyskole offers high-quality bachelor’s degrees in health, social sciences and psychology, both on campus and online.”

That sounds interesting in principle, but the stock has lost around -75% since its 2021 IPO. Operating margins peaked comfortably before the 2020 IPO, and it’s been financially downhill ever since. Still looks expensive at 24xEV/EBIT, “fold”.

241. Black Sea property

Black Sea property is a company with a market cap of €2.5m that appears to have developed marine springs in Bulgaria. Looking at the price of the shrae, it was not very successful. “Fold”.

242. AKVA group

AKVA, with a market capitalization of ~200 million EU “is a leading technology provider for the fish farming industry and the only one with global distribution. The products consist of software, sensor systems, feeding systems and cage systems.”

So you could call it a “Fishtech” company, which sounds interesting. However, the company is loss-making and even on a normalized basis trades at a very high valuation that is not justified by margins. “Fold”.

243. Acre Carbon Capture

Aker Carbon Capture, part of the Aker Group, is a company with a market capitalization of 713 million that focuses on Carbon Capture in the CO2 “point capture” way, which means capturing CO2 in industrial stacks or exhaust gases, as opposed to Direct Air Capture, where players as Climework tries to filter CO2 from pristine air.

Created as a “venture” and going public in 2022, the company actually seems to be gaining traction, with revenues growing nicely to over €100m, however margins are still very thin and the company is in the red. However, the order book looks healthy and with the current cash burn they have enough runway for several years,

From what I understand they make the devices but they also offer “Carbon Capture as a Service”. As first movers, they can benefit from their experience.

Overall, despite the losses, this is a stock that could be worth it “watches”.

244. B2 Impact

B2 Impact is a €240M market cap company that claims to be “one of Europe’s leading debt management companies”. If I understand the business correctly, they buy bad loans and then try to collect as much as possible all over Europe.

So far, the value creation has been quite limited, the return on capital is somewhat limited and even slightly lower than the Nordic banks. The rating looks cheap. like all Nordic banks, but if I needed to make a decision, I would go to the bank. “Fold”.

245. Gigante Salmon

Gigante is a farmer with a market capitalization of EUR 100 million, which focuses on “land” breeding. So far they have no sales and only losses. This is not my cup of tea “fold”.

246. Sparebank Ostfold Akerhus

With a market capitalization of EUR 345 million, this Sparebank is a medium-sized bank. Like the others, it looks cheap at a P/E of ~8 and a dividend yield of 5.6% and a P/B of 0.9. The stock has returned ~3x over the last 10 years, which is quite remarkable. Anyway, no Sparebanken for me, “fold”.

247. Lytix Biopharma

Lytix is ​​a €19m market cap company developing some kind of cancer treatment. Its lead candidate appears to still be in Phase II clinical trials. “Fold”.

248. Northern Health AS.

Northhealth has a market capitalization of 167 healthcare software-as-a-services (SaaS) in the Nordic region and internationally. The company acquires, manages and builds SaaS practice management software (PMS) for approximately 50,000 veterinary and therapy professionals, such as physical therapy, psychotherapy, occupational and speech therapy specialists, in 13,000 clinics and hospitals in 30 countries.

This 2021 IPO, like others of its vintage, is down about -50% since its IPO. The company is loss-making and growth has slowed in 2023. The only profit they reported was in the pre-IPO period. “Fold”.

249. Ocean Geoloop

Ocean Geoöoop is a €38M “green technology company developing point source carbon capture units and Geoloop eco units in Norway”. Ipo’ed in 2022, shares have lost about 2/3 since then. The company does have some revenue, but it’s still loss-making. However, the first 6M looked significantly better and the company still has some cash. They also have a kind of unique technology (in testing phase) that captures CO2 from the ocean.

They work with some of Norway’s biggest industrial companies (Yara, Norske Skog) and Norway in general seems to be a pioneer in Carbon Capture.

Considering I find Carbon Capture pretty interesting, actually “watches” this.

250. Gjensidige Forsikring

Gjensidige is an insurance company with a market capitalization of EUR 7.8 billion that operates in the Nordics and the Baltics. With an ROE in the range of 2ß%, Gjensidige is clearly one of the most profitable in Europe and growing nicely. The SP/E 15s are expensive relative to their counterparts, but not that expensive on an absolute basis.

The chart shows decent value creation since 2012:

I also like that the profits are driven by insurance and don’t rely too much on the capital markets. The only question is how much growth opportunity remains in the Nordics and the Baltics. “Watches.”

251. Akastor

Akastor is an offshore oilfield services company with a market cap of €240m that appears to operate vessels assisting in the construction of offshore oil wells. The company has had more losing years than profitable years in the past decade. “Fold”.

252. Golden Energy Offshore Services

Golden Energy, with a market cap of €60m, is another offshore oilfield services company specializing in platform supply vessels. Looking at the steady losses, the trade seems rather unattractive. “Fold”.

253. Nordic Nanovector

Nordic Nanovector is a reverse merger (July 2023) biopharmaceutical company with a market cap of EUR 40m developing hematological cancer therapeutics in Norway. No sales, only losses, “fold”.

254. Evolution of salmon

Salmon Evolution is a €240M market cap, “land based” salmon farming company that appears to still be in the start-up phase. So far only losses “fold”.

255. Acre BP

Aker BP is a €16.5 billion market cap oil company owned by Aker (approximately 20%) and BP (16%). In 2022, it was merged with Sweden’s Lundin. Like many oil companies, it looks cheap with a P/E of ~8 and a dividend yield close to 7%.

Interestingly, they only have reserves in the North Sea, they have very low production costs and very good value creation in the long term:

If I were to go by oil reserves, Aker BP would clearly be one of the favorites, maybe next to Occidential. But I wouldn’t feel comfortable with a position in oil stocks at this point. Still worth it “watches”.

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