Well, the first half of 2017 did not make me a rich man. The portfolio performance is disappointing. Actually, on average the portfolio is down 28.8 % since New Year. This in a period were the broad Stockholm index (SPI) is up almost 8 %. Luckily, there are stars among the shares with great performance. Still the number of shares with huge losses are very high.
It is increasingly difficult for a share to get any upwards momentum after an issue. Often the share hovers around the issue price. Then starts sliding downwards. BrainCool is the latest example. The issue price were 5 SEK and now a month later, the share is almost 10 % below the issue price at 4.59 SEK. For the winner in the first half of 2017, Phase Holographic, it took 14 months before the share started moving upwards after an issue. The overall portfolio performance you can see above. Here follows comments on the three best and the three worst performing shares.
Worst performing shares
Let us take the three worst performing shares first. The race to be the worst performing share is hard as all three of them are close. With a small margin, CybAero takes the price with a loss of 74.7 %. Right now, the company strives to find money to continue, as there are not enough cash to go on for the next year. Personally, I hope they will find a large, long-term investor who have the resources to back the company. Find the latest post on CybAero here and the latest update on finances from June 30th.
Second worst performer is Recyctec with a loss of 73.5 % during the last six months. The company had technical problems last summer, then sales were slow, then came an issue, then there was an EU project where EU did not approve the report and want back the funds. The performance of the company is not impressive and their prior market communication even so. Latest post on Recyctec.
A new CEO with a sales background takes over the company from July 1th so hopefully, they will focus entirely on business. The former management opted for break even this year, and the Q2-report later this month will show if this have any realism to it. If it has, there is basis for a solid drive upwards, if not we will probably be stuck in the mud for some time.
Third worst performer is A1M Pharma with a loss of 73.2 %. The share has made a reverse split 20:1 during spring and the present price corresponds to an ‘old’ share price of 0.585 SEK. It is very much the same story with A1M – and issue and then downwards from there. In June, the share moved from Aktietorget to Nasdaq First North. At first, it gave a lift, but now the shares is almost back on entry level. Latest post on A1M.
Best performing shares
The best performing shares are shares where the latest issues are some time back – and the most mature company in the portfolio.
The best performing share is Phase Holographic. The share has doubled during the first six months to 53 SEK from 26.5 SEK at New Year. The odd thing is that there are no significant triggers behind. The company sells a number of instruments each quarter. In scientific journals, the number of articles and papers based on their instruments rising steadily and thereby creating the new standards of studying cell life. Latest post in Phase Holographic,
The second best performing is Fortnox. The share is up 12 %. This follows a 2016 where the share went up 79 %. One year ago, the price was 16.30 and on June 30th, it was 33.5 SEK – more than a doubling of the price the past 12 months. As a little extra, there was a dividend of 0.20 SEK in March. Latest post on Fortnox.
Fortnox has profile of high profitable growth There is no doubt than in the present market where investors pays less for expectations and more for performance the Fortnox share will continue to go up.
Third best performer is Cantargia, which has ‘only’ lost 15 % of its value. One could argue that a share with that performance should not be on a list of best performing shares. Here it is, anyway. Despite a line of positive news and reached milestones, the share has moved downwards throughout the year. The issue in January and February were at a price of 6.5 SEK and as with BrainCool, the present price is below that (5.70 SEK).
There is no doubt that I am disappointed when looking at the portfolio performance the first half of 2017. It had also made me think about my investment strategy. These thoughts will be the topic of the next post, which I post tomorrow, July 2th. Bis dann.