I’ve been waiting for someone to open this now traditional thread again, so I’ll open it myself. So, let’s “playfully” guess the three biggest stock price gainers on the Helsinki Stock Exchange for next year. The deadline for guessing is December 31, 2021. It would also be nice to hear a short explanation from everyone on what you base your potential stock price increase on.
Below is my own guess with so-called hypothetical scenarios, if everything were to go roughly according to plan for these companies. Please also note, of course, that these are not investment recommendations in either direction.
Stockmann (found in my own portfolio)
Lindex would continue its excellent performance, and the Retail side, which already turned profitable in Q3 of this year, would also make a profit/break-even. An important factor would also be that the properties would be sold on at least acceptable terms. I see considerable upside in the company’s valuation, which may materialize quickly when/if the properties are sold and more information is available on what form Retail will continue in.
Orthex (found in my own portfolio)
Internationalization would accelerate even further and the homebody trend would remain relatively strong despite the corona situation. We would finally also see one or two good acquisitions that are successfully integrated into the company. The company would do at least a small-scale “Harvia” (referring to a successful company).
Rush Factory (not found in my own portfolio)
In my prediction, I see considerably the most risk in this case, but in return also the opportunity for high returns. If all goes well, the unfortunate 2020 project would finally be launched and immediately prove to be a success. At the same time, the old COR project would still produce steadily. Corona would also not significantly prevent the organization of events.
Stonkmann, the value will be unleashed big time when the department store walls are sold, and the company will then be a debt-free, Lindex-driven cash flow machine.
Kamux was hit so badly this year that I wouldn’t be surprised if the dip was covered next year, even though I don’t currently have Kamux in my portfolio.
As a wild card, I’ll throw in SRV; the stock is so deep in the mud that if one or two positive surprises popped up, there would be upside available in both results and multiples.
QT because we’ve only heard the prelude about this company. Many don’t understand the incredible potential this company has.
Tokmanni is an expanding company that will surely expand outside of Finland in the future. It’s also possible that a larger player will acquire Tokmanni.
OmaSP is one of the gems of the Finnish stock exchange that doesn’t get enough attention considering how good and cheap a company it is.
Kamux, Tokmanni, TietoEvry: in my opinion, the common denominator for all of them is a high-quality fundamental basis (funda) that can withstand downturns, combined with a recent drop in share price. In uncertain times, they are also defensive, which might attract investors fleeing from high-volatility stocks (bumtsibums). Or perhaps these will generate the most spectacular losses (turskat), as Shiller P/E is around 30 for all of them, so half could be shaved off if growth doesn’t materialize. Biased opinion, I own them all.
Nokia (5 & 6G technology continues to develop and will increasingly dominate society and its services.
Neste (Renewable energy sources are slowly but surely beginning to dominate our society more and more.
F-Secure (The importance of cybersecurity grows more and more each month. No one can fully prepare for the next attack. However, there are entities that know enough about them to stay ahead of the curve in terms of knowledge and skill.
Kamux: Shows that the growth story is progressing as planned. The share price has fallen disproportionately in my opinion. The valuation level at the start of the year is low and will improve over the next year.
Kempower: Strong hype and growth is likely to be fast for another couple of years.
Let’s go with my own portfolio, as I’ve become most familiar with these and see good return potential.
Orthex
Kamux
Harvia
Harvia will pull off a few “Harvias,” meaning it will surprise with positive earnings revisions/acquisitions. Kamux’s growth story continues, and investors will once again start pricing in positive scenarios. So, we’re not heading into the next year with hype (the market seems to have shifted from hype to companies that generate results, which could also favor the names above).
