Value investing trap 1 - Working capital

Another strong quarter by Medistim, and shares were rewarded by the market.Listeners may ask for quarterly updates on specific companies, and I will prioritise accordingly. Not financial advice.

Bouvet came with a flat Q2 report both in terms of revenue and EBIT. The shares traded up 15% on the day however, showcasing the over-blown fears of AI which has put pressure on the stock. The Q2 showed business as usual, and that AI won't kill the company. In the coming quarters, Bouvet faces increasingly favorable comparables.Not financial advice, thanks for listening.

The company returned to double digit growth in gross profits, a much welcome sign. Still, declining margins and low growth within DOCS leaves some question marks regarding the long term growth of the company, as well as the management team. Not financial advice

Another brilliant report from Norway's highest quality company.Not financial advice.

Arcticzymes Technologies is an interesting company with gross margins above 90%. The company trades around 1.05 billion NOK at a share price of 20 NOK. Adjusted for a large net cash position, the company trades around 6 times sales. If the company can reach stable revenue growth above 10%, I believe the outlook for shareholder returns is very strong. Due to incredible gross margins and low capex needs, I believe the company deserves to trade around 10 times sales. But in order to get there, the market needs to believe that the company has reached an inflection.Not financial advice.

Some companies seem to grow revenues and earnings every year, by acquiring profitable businesses. Yet, the stock never seems to move in tandem with the numbers. The company always seem to be cheap on an earnings basis. This is perhaps due to the third value investing trap; reinvestments into goodwill and intangible assets. The episode is a bit technical, but I've tried to keep it as simple as possible. Thanks for listening.

NB: This is a previously published episode, remade with better sound quality.Some companies seem optically cheap, but never seems to get recognition from the market. A common reason behind this classic value investing trap, is reinvestments into property, plant and equipment.

NB: This is a previously published podcast, remade with better sound quality.Some companies always seems to trade at a low multiple. Charlie Munger hates that kind of business.In this episode I go through the working capital cycle of a product company, and explain why they deserve a low multiple. If I could go back in time to understand something early in my investing career, this would be high on the list.

Quick recap of the Q2 report, and the most important developments for investors.

A brief update on Generic after the Q1 report.Not financial advice.