Author Topic: SCHO.CPH - Schouw & Co. A/S  (Read 19945 times)

John Hjorth

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”In the race of excellence … there is no finish line.”
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DooDiligence

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #61 on: October 31, 2017, 11:46:26 AM »
(Healthcare 42.9% - ABC BBH CVS DVA EW NVO) | (BRK.B - 14.8%) | (Media & Communication 12.6% - CHTR CMCSA DIS)

(Drinkers & Smokers 13.8% - ABEV MO) | (Auto's & Oil 10.3% - GPC VDE) | (Tech & Comms 5.5% - AAPL SFTBY)

(%'s held @ MV 9/04, excludes $)

[prepared 2 wait]

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John Hjorth

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #62 on: October 31, 2017, 01:44:16 PM »
To me, the second best Danish company listed, DooDiligence. You already own the one with an expected future, that I consider even better. Holding this one feels a bit similar to sitting on Berkshire, which can not be said about NVO.
« Last Edit: November 12, 2017, 02:16:08 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 #63 on: November 13, 2017, 12:52:05 PM »
To me, the second best Danish company listed, DooDiligence. You already own the one with an expected future, that I consider even better. Holding this one feels a bit similar to sitting on Berkshire, which can not be said about NVO.

If no other board member will take the opportunity to ridicule me here, I'll hereby take the advantage and freedom to do it my self.

Schouw & Co. A/S Interim Report 2017Q3 out today.

Basically, absolutely on target, and on track. - Period. [Compared to the guidance from the company earlier].

What happens then today? - Well, analysts etc. thinks everything continues to grow into the sky, at a fast track never mentioned - in any way -  by the company, but by analysts. Outcome: No market reaction at 12:00 at the release of the interim report. A short time before the investor conference call at 15:30, the stock starts to tank - seriously.

Basically, 8 percent down today. Talk about fierce competion and so on [which has been mentioned by the company for more than a year].

Oh well. More down for me to buy more, right now.
« Last Edit: November 13, 2017, 02:40:39 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 #64 on: December 15, 2017, 12:08:07 PM »
”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 #65 on: February 02, 2018, 12:49:57 AM »
Bolt-on acquisition at Fibertex Nonwovens: Fibertex Nonwovens makes a strategic acquisition in Brazil.

No information about price paid though.
”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 #66 on: March 13, 2018, 02:02:50 PM »
Schouw & Co. A/S Annual report 2017 out Friday 9th 2018.

To me, absolutely impressive what this company has accomplished during 2017.  And 2018 looks also very good. The group has simply reached a new level of earnings going forward. Add to that a strong cash flow, providing sufficient cash flow along the way, to grow by acquisitions.

Schouw & Co. A/S Annual Report 2017 Investor Presentation.

- - - o 0 o - - -

- After about 15 months of "maintenance" of this topic, I'll let it go, from here.
”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

Spekulatius

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #67 on: March 13, 2018, 02:50:58 PM »
Schouw & Co. A/S Annual report 2017 out Friday 9th 2018.

To me, absolutely impressive what this company has accomplished during 2017.  And 2018 looks also very good. The group has simply reached a new level of earnings going forward. Add to that a strong cash flow, providing sufficient cash flow along the way, to grow by acquisitions.

Schouw & Co. A/S Annual Report 2017 Investor Presentation.

- - - o 0 o - - -

- After about 15 months of "maintenance" of this topic, I'll let it go, from here.

What is so great about their results? Earnings were up ~5%, despite significant acquisitions and ROIC went down. No surprise that the markets reaction to the results has been muted. I don’t know about the fish feed market, but the market for farmed fish is highly cyclical (driven by supply and demand), so this might affect fish feed producers as well. The fish feed market itself seems to be low margin.

I sort of like this outfit, but I don’t think the results have been as stellar than you make them. FWIW, I do think you should countinue to cover this outfit.
« Last Edit: March 13, 2018, 02:57:12 PM by Spekulatius »
To be a realist, one has to believe in miracles.

John Hjorth

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #68 on: March 15, 2018, 10:55:09 AM »
Thanks, Spekulatius,

I'll try here to elaborate a bit the 2017 figures, that we've now got.

The year 2017 is affected by a lot. [Yes, ROE of 10.9 percent, based on year end closing at P/B 1.68 does not seem impressive, nor appealing at all.]

YE2016 equity of MDKK 7.797,

I consider most of the amortization of intangibles - estimated for 2018 DKK 83 M - non-real.

Cash outflow from investments 2017 minus MDKK 2.763. That's a lot. Time will tell if it's good , or not. A lot of "dead" capital tied up during the year in  construction in progress [BioMar: new production line in Norway, now in operation, new factory under construction in Australia. GPV: new factory in Mexico.] The most expansive year in the history of the company - by far.

This former languishing cardboard factory has turned into a "mini-Berskhire" - a serial acquirer, based on cash flow generation. It seems like there is room for a lot more. There are obviously Danish families owning great Danish companies, that won't sell to PE, that prefer this sucker as the new home for their "child", if it has to go for some reason.

I hope for some bolt-ons on Borg, the market it's operating in is highly fragmented.

It seems like the tentacles of the Swedish companies Investor AB & Industrivärden AB can't reach Denmark. There is no other thing like this here in Denmark.

Schouw & Co. can't be taken over by anybody because of the shareholder structure. Mr. Eskildsen has it in a firm grip, via Givesco A/S and two foundations.

- - - o 0 o - - -

Attached are the 2017 BioMar Group 2017 financials.
« Last Edit: March 16, 2018, 05:54:42 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

Spekulatius

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Re: SCHO.CPH - Schouw & Co. A/S
« Reply #69 on: March 17, 2018, 05:59:21 AM »
John, than you for the color - my comment was related to how things are (within a very limited time window) while your perspective is what they have done already and should be able to do in the future.

I agree that SCHOUW has gone a far wayanf the stock, while not extremely cheap, is not expensive either.

I do wonder if the Biomar is a good business though. The fish feed sound like a commodity business they feeds into another commodity business (farming salmon). Biomar is 50% of SCHOUW’s EBITDA so that question is relevant.My experience with other companies they worked in similar sectors (animal feed nutrient) was not that positive (EVK.DE - they have since dumped this business).
To be a realist, one has to believe in miracles.