Hi!
I'm trying to teach myself how to conduct equity research and eventually hope to achieve a decent level – so any constructive comments are welcome.
I selected companies to cover because when looking at some financial news I noticed the mid-cap Dutch company Aalberts Industries was being covered at a local level. Given that it is a multinational (its largest market is the US) I didn't think this made sense. So I am attempting to cover it as well as it's peers Bodycote (UK), Geberit (CH) and Uponor (FI) and in the process teach myself how to perform equity research. I hope by the H1 2013 results later this year I will be sufficiently knowledgeable about the sectors and companies to write some good stuff.
At the end
of this post is my work in progress so far on Aalberts and is an extremely
rough draft. There are several sections which need to be formatted and put into
the appendices. There are also undoubtedly some errors which will need to be
taken out.
Given
recent indicators from Uponor 2012 results and Geberit´s initial press release
on 2012´s results which show recovery in the US as well as some positive signs in Europe, it may be that my 2012 revenue estimate for Aalberts is on the
low side.
I still
need to conduct a comp analysis and I am not settled on several key assumptions
but it’s a beginning. I have to work a lot on the style and decide on more
information to include and exclude for an eventual attempt at an initiating
coverage report.
I have
found Aalberts a difficult company to understand as it is exposed to so many
industries and markets without, in my opinion, too much transparency. It’s because
of this I see it as a good challenge.
A lot needs
to be improved and I look forward to making it better.
My approach
so far has yielded a target price of EUR 16.80 with the close on 18th
February being 16.46, thus I am provisionally rating Aalberts a hold.
Disclaimer:
As already mentioned in the about section of this blog I do not hold any shares
of companies and this should not be used for investment purposes.
Here´s the link to my work in progress: https://docs.google.com/file/d/0B6ESf1-JCd-uSzZBX1pTNlhKLUE/edit?usp=sharing
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