Let’s start the traditional prediction thread, as I’ve already done some thinking of my own.
So, let’s make some “playful” guesses for the three biggest gainers on the Helsinki Stock Exchange in 2023.
I’d like to hear brief justifications for the choices. The last day to enter your picks is January 1, 2023.
Here are my picks:
Qt Group, in portfolio
I believe growth will remain strong and will start to show in the share price by the end of the year. Performance has been good all along, and I see no reason why that wouldn’t continue.
Savosolar, in portfolio
Meriaura coming on board will sharpen operations, and new customers for solar collectors will start to be found as the energy crisis continues.
Merus Power, in portfolio
Long-term work will pay off next year and energy storage will start to sell; additionally, filters will continue on a strong path as more references are gained. The products should be in good shape, and I trust the company’s management.
In competitions like this, you have to trust the companies where your own money is also invested. So here are my choices:
Fondia
A turnaround company whose turnaround will strengthen during 2023. Employee turnover is decreasing and, as the new CEO has said, focusing on the basics is starting to yield results. Strong progress continues in Sweden, and Finland will be put back on the growth track.
Sievi Capital
With the new strategy, the company’s hidden value will begin to be unlocked. KH-kone’s strong performance continues. The new H1 reporting method and Sievi Capital’s first-ever Capital Markets Day will provide more visibility into the company’s value.
Kamux
At least H1 2023 will still cause some gray hairs for the company, but quite a lot of bad news has already been priced into the share price. Perhaps not all the bad things will materialize, and the company might even surprise positively during 2023. The positive surprise could come from the progress of operations in Germany and gaining market share.
Sievi: The return of value investing strikes, and a price below book value appeals to investors, as does the new strategy.
Wärtsilä: With the European Green Deal, wind turbine blades and rotors are being shipped around Europe with engines at full throttle, and everyone is craving energy storage.
Omasäästöpankki: The recession fails to materialize and remote-area mortgage leveragers actually manage to pay off their loans, the Lieto merger succeeds, and OmaSp starts to be priced as a growth company.
Fodelia: Food inflation is starting to cool down and margins are improving. At the same time, volume is increasing as municipalities outsource operations.
Norrhydro: The new factory is starting to run properly and, same as above, raw material prices are starting to normalize; it would also be great to get some good news regarding Norrdigi.
Valmet: Stable business with good margins from the services business. Cyclicality is decreasing, and the stock’s valuation is improving.
Puuilo
Inflation is rampant, the dough is disappearing, and more and more people are finding their way to discount stores. Greetings to the table of the getting-poorer folks!
Robit
Materials are running out, we gotta go deeper, and drill bits are wearing down. A steel hammer pushing the turnaround company to the next level of the platformer.
Wärtsilä
When talking about energy-efficient and sustainable solutions in this greenwashing world, then → Wärtsilä on my mind, Wärtsilä on my mind.. Wärtsilä on my mind.. Wärtsilä is on my mind.
Faron
The start of the next phase for Bexcombo and Matins aided by biomarkers and the expansion of Bexmab to Phase II. Additionally, news on partnering deals is expected.
Herantis
The share price has drifted down since Lymfactin and rhCDNF were discontinued, which has increased the company’s risk. All chips are now on HER-096, with Phase I trials being conducted during 2023. Preliminary preclinical data looks promising.
Optomed
FDA approval, so that sales to the US can be started.
Oma Säästöpankki - Deep recession is avoided, the sector’s valuation improves towards historical averages, and the rise in interest rates will eventually benefit Oma SP Kamux - Bottlenecks in new car production are resolved and used cars start selling again
Lamor - Growth remains strong
Valmet - had to pick something to replace Kamux
First that comes to mind is Kamux. It has been beaten so far into the ground over the past year or so that it’s bound to head up at even the slightest success. Plus, a new CEO is starting as well, and we’ll see how the company starts being steered in the right direction.
Secondly, as a bit of a surprise, I’ll go with Metso Outotec. Orders are pouring in almost daily at the moment. Copper mining is accelerating and rock crushing operations should continue at a good level. Generally, it feels like the company has weathered the market turmoil well.
Thirdly, Oma Säästöpankki. Growth is still continuing at a good level.
Moderate holdings in all.