Portfolio update: What a beginning of 2018!

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Two weeks back I made a post on the portfolio development last year. The conclusion was that only three shares out of 13 moved up last year. The three worst performing shares all dropped 80-90 %. Now it seems that they many of the shares have started a comeback. This year in other words, have had a terrific start.

The broad Stockholm index is up 3.7 % the past two weeks, which is a clear sign of the current optimism in the market. My portfolio have moved up 30.5 % in comparison. Dignitana, Recyctec and Heliospectra are all up between 78 % and 88 %.

Dignitana and Recyctec

I wrote about Dignitana in my last post. Since the issue (at 2.10 SEK), the share only have moved up. Since last weekend, it is up 64 % and 81 since New Year. No news have emerged from the company since the announcement of the completed issue. Nevertheless, it is up 10-20 % on a daily basis.

Recyctec is up 78 %. This is despite the fact that Recyctec still not have found solution to the financial problems announced in December. Cash will run out in two weeks if they cannot find investors or Recyctec cannot make a sell-and-lease back arrangement with their production site. On the other hand, the company had announced 2 MSEK sales in Q4 – and made it. Compared the previous lack of results, this is a new standard.

Heliospectra best in portfolio

Heliospectra is up almost 90 %. On January 3th Heliospectra announced the largest order yet of 5.5 MSEK from Canada. Since then, the share price have moved upwards. In my latest post, I announced an experiment this year making stop-loss orders on the portfolio avoid the losses seen in 2017. I implemented these and during the past week, I consequently sold half my Heliospectra position as the share made a hefty drop on Wednesday when a number of investors cashed in their profits after the huge rise. The share does seem to have a positive momentum and I might soon re-enter.

There will still be more than a month before we will have the full-year report (February 23th). The first nine months growth in revenues was 21 %, but order intake was +52 %. Heliospectra must have delivered a large bulk of these orders during the last months of 2017.

When the CEO began his work in the beginning of 2017, he immediately began cutting costs. Question is if he has trimmed the company enough to reach breakeven in 2018. After Q3, the loss during the first nine months were 25 MSEK – on basis of a 20 MSEK sales. Not knowing the margin, I guess we will need at least a doubling of sales before there is a positive cash flow and Heliospectra starts making profits. No doubt 2018 will bring us much closer, nevertheless.

Cantargia and CybAero

Cantargia made an issue during the last part of 2017 as well. Since then, the share price have recovered significantly and the share is up almost 30 %. Since New Year Cantargia have received good news on patents in the US, in China, and from EU. These news no doubt have contributed to the positive momentum in the share.

During next week, the temporary shares will be converted to ordinary shares.

CybAero who also made an issue during November and December is the worst performing share in 2018. Right after New Year the company announced that it is still looking for a CEO and now also a CFO. Translated this means that the current CFO and interim CEO leaves the company as well. There is no reason given for this, but it indicates that then trouble for the company are not over yet. I hope that soon the company finds a CEO as they have been looking since August. Six months in a storm with no captain is critical.

There are of course no guarantee that 2018 will continue as it has begun but this is a superb start. I expect both Nexam and Hexatronic to perform really well this year. They have not yet started their journey, but might after either the reports in Q1 or Q2.

Check out my growth share portfolio, the share price trigger list or my EGS (Evaluation of Growth Shares) Model.

1 thought on “Portfolio update: What a beginning of 2018!

  1. Pingback: Year-end reports approaching | Swedish growth shares

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