Inderes Coffee Room (Part 10)

[Verneri_Pulkkinen]

@Sijoittaja-alokas

”Investors have, by calculation, only about three billion left of the First North list’s combined market value of approximately eight billion, meaning five billion euros have evaporated into thin air in three years due to the share price decline,” states Hannu Angervuo, a stock market veteran in asset management, in his report.

The estimated losses of approximately five billion correspond to almost the stock market value of the engineering group Valmet, which is 5.4 billion euros.

I, at least, view First North companies as part of the entire stock market, but as a list, it has been a bomb in recent years. ~60% down from its peaks. The OMXH Small cap index, i.e., small companies on the main list, is, however, “only” less than 40% down from its 2021 peaks. The OMXH Small cap has also recovered slightly from its lows.

This probably explains the gloomy sentiment on the forum. If you look at Helsinki’s large companies, we are practically at an ATH (All-Time High) with dividends. Nordea, Finland’s most popular company to own, is at an ATH. The national stock Mandatum is almost at an ATH, etc. But there are a lot of small-cap focused pickers here.

On the other hand, among the larger and popular players, for example, Neste, Qt, and Tietoevry have crashed, and Nokia is going nowhere.

The good thing about that little-known index is that, compared to it, many portfolios have certainly outperformed in recent years.