So, Componenta. I haven’t found a discussion on this yet, and I would be interested in hearing other people’s thoughts.
The company provides cast and machined components, forgings, hydraulic pipes, and plate components to international vehicle, machinery, and equipment manufacturers.
The company has faced major challenges recently, and its sister company (?) Componenta Främmestad AB filed for bankruptcy. As a result, revenue will decrease by about 40%, but relative profitability will improve as Främmestad’s unprofitable operations and debts—amounting to approximately EUR 4 million, if I remember correctly—disappear.
The company is thus deep in a restructuring phase, but it strongly appears that management knows how to do things better moving forward.
The cycle is starting to look like the moment to jump on board might be coming up soon, but let’s see how things progress.
If the company succeeds in its restructuring, I personally see a very significant potential for value appreciation even in a relatively short period of time.
I used to follow it, but not for a while. So I don’t fully know the current situation:
Componenta carries a really big macro-cyclical risk. It’s worth considering whether a company manufacturing investment goods with a weak balance sheet is the right choice for this economic climate.
I’ve been wondering the same thing about the economic cycle, that now is probably not the time to jump on board, otherwise the company’s situation will be so battered for good reason and at the same time the share price has fallen very low. I hadn’t even considered the macro risk, so it’s good that you brought it up, I’ll have to delve into that next
Shareholders could subscribe to more shares at €0.04/share. At the beginning of 2021, the company aims to pay off restructuring debts in advance. Could a turnaround have happened?
Componenta receives a payment of 1.9 million from the bankruptcy estate of its former subsidiary
16.11.2020
Componenta, a contract manufacturer of cast and machined metal components, has received a payment of 1.9 million euros from the bankruptcy estate of its former subsidiary, Componenta Främmestad AB.
Of the payment, 1.6 million euros is principal and 0.3 million euros is default interest.
These receivables had already been fully written off from Componenta’s balance sheet last year.
The payment received from the bankruptcy estate improves the group’s result for the current financial year by 2.2 million euros and its liquidity by 1.9 million euros.
The received payment constitutes full settlement of Componenta’s receivables from the bankruptcy estate, and no further payments are expected, according to the company.
The payment does not affect Componenta’s guidance for the current year. The company expects the revenue of its continuing operations to be 65-80 million euros this year and its operating profit to remain positive.
I’m definitely joining in. I watched the extraordinary general meeting where Harri Suutari spoke. As a modest man, he did say that it’s not nice to ask shareholders for money one more time when money should be given out.
Kyösti Kakkonen (and I think there was someone else?) bought the shares from Capman. A lot of restructuring has been done, e.g., the Turkish operations were sold, etc. Of course, he admitted that there are many small competitors in Finland who are quick in their moves, but he saw Componenta’s strengths as delivery capability and long-term customer relationships, once demand grows again.
I think I’ll lean towards marking as well. It’s not a very large position, so it can withstand a bit more risk. Wasn’t the restructuring program supposed to continue until 2023, so it’s a good sign if they could finish it a couple of years ahead of schedule.
I have a tiny ownership myself, but I’m not going to subscribe to the offering. I should have sold this off earlier, but I haven’t gotten around to it.
It’s good if they manage to raise the necessary funds in the offering and can pay for the restructuring.
It’s also good that they got big old investors into this offering.
I just don’t see the incentive here for me to put money into the offering.
I’ll mainly be watching from the sidelines to see if any interesting news comes from them and if they genuinely manage to turn the business around, then I’ll buy in, but I don’t really believe in this, at least not yet.
I went to support Componenta, doubled my ownership. I believe that within a few years, the investment will be profitable. Additionally, Kyösti 2 wouldn’t leave if the situation was completely hopeless.
New shares came into trading today. It looks interesting that the price of the new shares is somewhat lower than that of the “old” shares. Is there a logical reason for this?
I made the same observation and tried to take advantage of it by selling old shares to buy new ones. However, the matter was left halfway because at least with Nordea’s equity savings account, it was not possible to acquire those newer ones at all. It may well be that in such cases it is more often like this with equity savings accounts, I don’t know. But be careful if you’re eyeing a free lunch.
. Thanks for the tip, I owe you one 
