The hunt for overpriced companies is underway – Fundamental Portfolio

Principles of building fundamental portfolios

Each of the portfolios consists of no less than five and no more than ten companies selected by experts participating in the competition. They can be any companies from the WIG, but those with the exchange rate below PLN 1 are omitted. The shares of the companies in the portfolio are equal. There is no cash in it. Any modifications to the composition are possible once a month (at the end of the month), and the number of companies in the portfolio may change (however, it must be between five and ten). The settlement of investments is made according to the share prices from the closing of the last session of the month. The rates of return are cumulated from month to month in a given year, taking into account previously earned rates of return. Transaction costs are not included in the calculations. Dividends are taken into account. JIM

DM BDM

FROM THE WALLET FALL OUT:

– Cognor, Enea, Mabion, Stalprodukt | Change in the portfolio structure.

– Polwax | Results for the third quarter of this year. fell below our expectations.

THE WALLET INCLUDES:

– Bogdanka | The share price gave away most of September’s gains. Meanwhile, the demand for hard coal remains above average, prices in ARA ports double year-on-year, and Poland is a significant energy exporter. Due to the annual contracting, the price effect will be visible in the company only in 2022, which means that the best is yet to come.

– BoomBit | We are counting on good sales results in the fourth quarter.

– CI Games | We are counting on a positive outcome of the review of strategic options.

– Stalprofil | The price correction in the profile market was relatively small and now an upward trend is observed again, which bodes well for the results for the fourth quarter. Big backlog in Izostal. Very attractive valuation with EV / EBITDA <2.0x.

Haitong Bank

FROM THE WALLET FALL OUT:

– Eurocash | Profit taking.

THE WALLET INCLUDES:

– Comarch | The company is supported by an attractive valuation and a larger year-on-year portfolio of orders.

BM BNP Paribas

FROM THE WALLET FALL OUT:

– AB, Develia, Wielton | Change to more attractive companies.

THE WALLET INCLUDES:

– Ciech | Positive prospects for the soda segment in the coming quarters.

– Kernel | Good results for the third quarter, together with expectations of further improvement in the coming periods, should support the improvement of the low valuation after the fears about the geopolitical situation (Russia-Ukraine conflict) fade.

– Shoper | We are using the recent rate correction to engage in an entity with attractive long-term growth prospects.

Millennium DM

FROM THE WALLET FALL OUT:

– Asbis, BOŚ, Benefit Systems, Oponeo.pl | It gives way to companies that are more attractive in terms of valuation.

THE WALLET INCLUDES:

– Alior Bank | We still focus on banks, and this one is one of the cheapest in the sector.

– Auto Partner, Inter Cars | Excellent results, in addition, problems with the availability of new cars stop the sale of older cars and encourage visits to car repair shops.

– Ciech | Diametric improvement in the sentiment on the soda market and promising contracts for the next year.

– Esotiq | A clear improvement in results, dynamic increases, especially in e-commerce, and still attractively priced.

– Tim | The company on the wave of growing e-commerce, excellent results for the third quarter, despite the increase in the exchange rate, is still valued at an attractive price.

BPS Bank Brokerage House

FROM THE WALLET FALL OUT:

– WSE, Polimex-Mostostal, Protektor, PZ Cormay, XTB | Change in the portfolio structure.

THE WALLET INCLUDES:

– KGHM | Possible increases in commodities amid high inflation.

– Pekao, PKO BP | Expected interest rate hikes as a driver of further profit increases in the banking sector.

Noble Securities

FROM THE WALLET FALL OUT:

– Ailleron, AmRest, Krynicki Recykling, Mabion, MCI Capital, Mo-Bruk | Change in the portfolio structure.

THE WALLET INCLUDES:

– CCC | The strong sell-off in the key quarter for results is excessive and creates room for a positive surprise.

– JSW | Excessive sell-off with still high coking coal prices.

– KGHM | Excessive sell-off and improvement in sentiment towards MSCI Poland.

– Pekao | Record-breaking inflation for November and jump in expectations (IRS) of the December rate hike to 81 bps. they are conducive to a positive attitude towards the banking sector.

– PGE | High prices of natural gas favor the production of electricity from coal (increase in the clean dark spread).

DM TMS Brokers

FROM THE WALLET FALL OUT:

– Atende | More attractive companies are giving way to the portfolio.

THE WALLET INCLUDES:

– Mercator Medical | A stabilizer in the portfolio in case of worsening moods due to the epidemic situation.

– Ten Square Games | Weighing the gaming sector.

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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