Author Topic: SCHO.CPH - Schouw & Co. A/S  (Read 21065 times)

DooDiligence

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Re: Schouw & Co. A/S [SCHO.CPH]
« Reply #10 on: December 12, 2016, 09:39:34 PM »
I really like this business & thank you for pointing it out.

The SUWCF foreign shares are kind of thinly traded but there seems to be a little arbitrage (don't know if I could take advantage through my Fidelity account.)

I'm going to get signed up for foreign equity trading & will continue reading & if I buy then I'll probably opt for the direct purchase for better liquidity.

It looks like their Chilean feed revenue problems were made up elsewhere & they did a good job of collecting on receivables.

Overall very interesting (Incuba could be a nice side business indeed!)

BTW I ate at a similarly designed sushi spot in Amsterdam a while back & thought it was a brilliant idea (the different colored plates / pricing was neat...)

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Maybe Novo Nordisk isn't a tenant but they're still hanging around

http://incuba.dk/en/whats-up/events/event-presentation/?AjrDcmntId=1589
« Last Edit: December 12, 2016, 10:38:53 PM by DooDiligence »
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

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DooDiligence

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Re: Schouw & Co. A/S [SCHO.CPH]
« Reply #11 on: December 12, 2016, 11:02:49 PM »
I just looked up all the Skejby businesses & it appears that many are ongoing concerns (maybe I'm being fooled by the nice websites.)

Pipeline Biotech kind of stands out to me.

My point is that this seems an impressive business development center & your comments concerning Mr. Sørensen's active investigations seem plausible.

It would be cool to see Schouw start a life sciences division & maybe take full ownership of companies like Scandinavian Micro Biodevices instead of letting someone else enjoy the long term value.

I got distracted by Incuba & need to start reading more about Schouw...
« Last Edit: December 13, 2016, 03:41:51 AM by DooDiligence »
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

https://twitter.com/tunawish

DooDiligence

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Re: Schouw & Co. A/S [SCHO.CPH]
« Reply #12 on: December 12, 2016, 11:34:41 PM »
BioMar may have missed out on a nice adjacency when Zoetis bought Pharmaq...

https://www.pharmaq.no/products/
« Last Edit: December 12, 2016, 11:37:14 PM by DooDiligence »
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

https://twitter.com/tunawish

John Hjorth

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Re: Schouw & Co. A/S [SCHO.CPH]
« Reply #13 on: December 14, 2016, 10:42:50 AM »
... Is it normal for a company like Schouw to be trading marginally above book or am I reading the numbers wrong? ...

DooDiligence,

Thank you for your questions about SCHO.CPH! They really help me to get an understanding of this company, because your questions are all relevant.

I still think it is relatively cheap, despite the runup lately. I'm comparing with the P/E's of industrial peers among the constituents of NasdaqOMX C20CAP.

I'm still thinking about why it is so, and trying to contemplate why it is so.

So far reasoning that I see:

1. "Dull" stock - basically no investors  are talking about it.
2. "Dull" stock - almost no analyst coverage. Link . Only Claus Almer from Carnegie and Bruce Diesen from Fearnleys were asking questions under the last conference call. Link - only available on Danish part of website - partly in Danish, partly in English. To me, if you have the time listening to it, certainly worth your time listening to it..
3. Quite complicated investment because of all the moving parts - by definition - as beeing a conglomerate - and by that alone trading at a conglomerate discount. I think that excludes quite some Danish investors getting interested because of the time you have to allocate to studying the company to get some kind of understading of this investment, and thereby some degree of basis of your conviction.

I have looked at many small listed Danish companies within the last years, mostly - for me - to no avail, because the companies I've been looking at does not fit my temper, or I've seen issues [from a shareholder and investment perspective], that simply made me walk away. I'm calling it "kissing frogs".

This investment fits my temper, somehow.

I'm trying to get some structure on my work on this thing, and my list, by priority, - right now - is:

1. Shareholder structure,
2. liquidity of the stock etc.
3. Obtaining further understanding of the conditions under which BioMar is doing business, because it constitutes a large part of the conglomerate,
4. List of cons/dislikes - already in progress - more might be added
4a. The size of the BioMar investment in relation to the size of the conglomerate, related to my position sizing,
4b. SCHO.CPH HQ building is to me flamboyant. Mr. Buffett should work from such thing. [Minor - perhaps I should get my envy in control]
4c. Commercial real estate stubs from prior ventures [Minor, relatively speaking, but somehow very annoying. -Fix it, get it over with, and move on!]
4d. Management option programme.

I'll post more - along the way.
« Last Edit: December 14, 2016, 10:49:16 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

DooDiligence

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #14 on: December 15, 2016, 02:43:33 AM »
Thanks for the dialog regarding this sexy looking frog & I hope I'm adding something here instead of just being a nuisance.

Here's an interesting report on protein food sources & their ability to sustain us from a human & industrial standpoint...

https://www.forumforthefuture.org/sites/default/files/The_Protein_Challenge_2040_Summary_Report.pdf

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It seems like sustainability in aquaculture, increasing yields & improving the ability to exploit entire catches are the driving force among forward thinking feedstock producers & fishermen (whether this translates into success in competition between farms & fisheries, dunno? But I believe it will be a factor for BioMar & their competitors...)

http://www.aquafeed.com/news/headline-news-article/7050/Norway-funds-business-innovation-project-to-investigate-

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Interesting how the algae bloom problem in Chile reduced fish & feed volumes & then increased profits for Chilean farmers & subsequently improved the company's collection of receivables (management states they expect payment on an insurance claim for lost business.)

Margins look fairly consistent so maybe no extraordinary supplier pricing power or buyer power.

A new factory online in Turkey & another opening up in China in 2017.

Threat of substitutes, new entrants & rivalry's (I'll have to read some more...)

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Schouw has run up a bit but still looks cheap on a sum of the parts valuation & as liquidation is not a factor, I'd think that the limit on a higher valuation would be as you said "obscurity."

I think they're in a great industry with a very long runway (if all participants stay rational with regards to pricing then it seems like there's profit to be made by all.)

That last statement was opinion & I'll read a bit more to see if the biggest producers are in fact being rational.

I like Incuba a lot, especially if management can fit the better ideas into the conglomerate.

BTW do you know if they do the Buffet thing where they buy a company with management in place & then leave them alone (for example, did they change the top guys at Non Woven Solutions when Fibertex bought control?)

I may be overthinking things here with that last question & it may even be irrelevant...

The fibers business seems like something that'd get sold but maybe that's just me (can't get excited about raw materials for Maxi Pads & such.)

I'd like to see more adjacencies to aquaculture (if I were an owner) but then I tend to like focused businesses...

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rb chimed in earlier & it sure would be nice to read his thoughts (I hope he's a fish & chips lover!)
« Last Edit: December 15, 2016, 04:37:06 AM by DooDiligence »
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

https://twitter.com/tunawish

John Hjorth

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #15 on: December 15, 2016, 03:00:14 PM »
...BTW do you know if they do the Buffet thing where they buy a company with management in place & then leave them alone (for example, did they change the top guys at Non Woven Solutions when Fibertex bought control?)

I may be overthinking things here with that last question & it may even be irrelevant...

DooDiligence,

Thank you for the links to reports! I haven't had the time to read them all in full - I will read them in the weekend. I'm sure - from what I've already read- that it  covers some of my concerns.

Now with regards to the business model for SCHO.CPH:

Berkshire style: "Hands off" - About "total autonomy" to the CEO of the eternal operational sub, ref. Mr. Munger earlier. To me, it seems totally exaggerated, but not with regard to Mr. Buffett and Mr. Munger.

What I'm quite sure is happening is Mr. Hamburg is doing all the follow up and asking all the relevant questions. And if he is loosing confidence in a BRK operational sub CEO, he is approacing Mr. Buffett with a question like this - just starting a discussion topic : "Warren, when you have the time for it, whe should sit down and talk to each other about this."

Or it pops like an appointment in Outlook from the Exchange Server, perhaps put in there by Mr.  Hamburg, his secretary handling and mentioning  things under a daliy morning meeting, Mr. Buffett replying: "Oh no, not again!..."

SCHO.CPH:

This guy [the group CEO] - and the controlling shareholders - are - not at all - the same, compared to BRK.

It's all about:

Buy low - trim the damn thing - sell it high [in the long run] - doing it all over again, again and again - and again.

ShaperDingaan on this board is the spokesman of this technigue: Rinse, repeat!
« Last Edit: December 15, 2016, 03:03:25 PM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

John Hjorth

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #16 on: December 16, 2016, 09:23:59 AM »
Attached are the 2015 financials for BioMar. Unfortunately they are only available in Danish. I think it should be possible to read the management discussion on page 5 - 9 using cut and paste and giving it a spin in Google Translate.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

DooDiligence

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #17 on: December 16, 2016, 10:15:13 PM »
I really like this but the cheapskate in me wants to see if a market correction will bring it down below historical book average (I know this is trying to time in & there'll be a lot of polite tsk, tsks but aren't we all reluctant market timers?)

Plus it'll give more time for studying / thumb sucking...
« Last Edit: December 16, 2016, 10:17:16 PM by DooDiligence »
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

https://twitter.com/tunawish

John Hjorth

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #18 on: December 17, 2016, 02:58:21 PM »
Thanks for the dialog regarding this sexy looking frog & I hope I'm adding something here instead of just being a nuisance.

Here's an interesting report on protein food sources & their ability to sustain us from a human & industrial standpoint...

https://www.forumforthefuture.org/sites/default/files/The_Protein_Challenge_2040_Summary_Report.pdf ...

DooDiligence,

Great summary report - thank you! I read it last night. Reading it actually made me more confortable - much more - with regard to BioMar beeing a such large part of the conglomerate.

I see a lot of growth for BioMar going forward long term, based on the report, if the course is the middle of the road - running the company in a sustainable and responsible, yet still efficient, way.

About this issue with kissing frogs: I have been wondering about what this attraction of mine is about with this thing? Is it a read head?, is it it a blonde? - Or is it a brunette? If it is brunette, is it from Brazil or Thailand? I found out that it is a brunette, and Danish - and with huge .... stock positions! [At holding company level, that is].

- - - o 0 o - - -

I have tried to pick up some more the last couple of days [Thursday and Friday] below 500, but to no avail - it's running up, up. up. Enormous trade Friday, that I have to look at.
« Last Edit: December 17, 2016, 03:13:45 PM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

DooDiligence

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #19 on: December 18, 2016, 03:55:40 AM »
A Danish brunette sounds lovely!

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As to Schouw's aquaculture business & major competitors:

Skretting is privately owned & Wikipedia claims they produced 2 million tons of fish feed in 2016

https://en.m.wikipedia.org/wiki/Skretting

Here's a mildly informative US link to their operations

http://www.skretting.com/en-US/our-story/

and another to their Norwegian web presence

http://www.skretting.com/nb-no/

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Cargill is also private & does a lot besides aquaculture (Wikipedia says they're HUGE!)

https://en.m.wikipedia.org/wiki/Cargill

Here's a link to their aquaculture page

http://www.cargill.com/feed/species/aquaculture/index.jsp

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It would be nice to compare financials with these guys but...
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

https://twitter.com/tunawish