I wonder why Tekova has not yet risen towards Evli’s target price. Having spoken face-to-face with the CEO several times, I consider him a person who truly leads the company with an entrepreneurial spirit. He works long hours for the benefit of all of us shareholders and, of course, for his own, as he is the second-largest shareholder. I can’t think of another listed company off the top of my head where the CEO has such a large personal stake.
Tekova’s share price has not yet reacted to its excellent performance because there is still widespread disbelief towards the entire construction industry. On the other hand, I understand this. Many have bitter experiences from the brutal decline of Lehto, SRV, and YIT. When you add the constant media drumbeat about the slump in residential construction, it is likely difficult for many to believe that some builder is striking gold. People don’t seem to realize that Tekova doesn’t build housing, but rather commercial premises for companies and public entities with excellent margins.
We will likely have to wait a while longer for investors’ faith in the construction sector to be restored. However, I consider it an excellent sign that Evli started covering Tekova. This creates confidence in the entire industry.