Growth share portfolio

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Here is a list in alphabetic order of my growth share portfolio – where I have chosen to buy shares. This is only a very short presentation and you will find additional information in my blog posts. To give an overview, I present a brief introduction to products and company, mark where the company is developing and what risk I personally find in the share. 

Please note that my risk assessment is not the same, as a professional investment advisor will use. If you draw a line and on the left side marks ‘low risk’ and ‘state bonds’, growth shares will in the right, high risk side (but still on the less riskier side of ‘Greek state bonds’ and ‘Greek banks’).

The risk assessment is mine alone, if you consider investing in some of the same shares that I do, please make your own. For each share, I have noted where and when it was listed. There is a link to the company webside as well. Here we go: my shares…

A1M Pharma (First North, 2013)

A1M Pharma is in the pharmaceutical industry, and the company is developing a method for diagnosis and a treatment for pre-eclampsia as well as a protection for the kidneys during cancer treatment.

Pre-eclampsia affects more than 10 million pregnant woman each year. A protein, A1M (alpha-1-microglobulin), is the basis of both treatment and research indicates that this protein has the ability to repair body organs and protect against oxidative stress. Clinical trials will start early 2018.

Risk: very high. During the three clinical phases, there is a high probability that the drug will fail (12 % is successful in phase I, of these 21 % in phase II, and of these 58 % in phase III). There is also risk if A1M Pharma will find a partner. A1M Pharma

AroCell (First North, 2011)

AroCell is in medical tech. Their product is a kit for analysing blood samples in order to detect cancer growth. Today it can be difficult to determine how a cancer grows. The product is unique both in determine growth and by making testing easier and much cheaper that today. AroCells product reached the market in autumn 2015, and currently the company aims a giving clinical evidence for the kit.

Risk: Medium to high. The product have reached the market, and it is still uncertain how high and fast the market penetration will be. When – or if – the company will make profits are still uncertain. AroCell

BrainCool (Aktietorget 2014 – after a split up of Dignitana)

BrainCool is in medical tech and make their products in the field of medical cooling. At present BrainCool working on five projects: cooling of strokes, cooling of cardiac arrest-patients, cooling to prevent oral mucositis, migraine and concussion. Both research and experiences showns that if the body is cooled after a stroke or a cardiac arrest, damages to the patient is lesser and he or she will recover faster.

BrainCool has developed a portable system for cooling in order to start treatment while the patient is under transport to a hospital. Oral mucositis is a side effect of cancer treatment. It is very painful for the patient and very expensive to treat, so preventing it will be a gain. Two Swedish icehockey teams is at present testing the treatment of concussion. Portable equipment for treating migraine at home is currently being testet in the UK. BrainCools cooling product has recently obtained a Japanese certification and the sale of equipment for treatment of stroke and cardiac arrest have started.

Risk: Medium to high. The  product is still at a developmental stage and the future market penetration is uncertain, but important milestones has been reached up until now. When – or if – the company will make profits are still uncertain. BrainCool

Cantargia (IPO marts 2015 listed on First North)

Cantargia is in the pharmaceutical industry and researching a drug against cancer, called CAN04. The people behind Cantargia has identified a certain molecule on cancer stem cells called IL1RAP. By attacking this molecule there is a double effect. 1) the body’s own immune defence can detect the cancer cell and attack it. 2) the ability of the cancer cell to proliferate is reduced. Cantargia is developing and documenting CAN04, and is aiming to find a partner for the clinical phases of the development. The first clinical trials have stared in 2017.

Risk: very high. During the three clinical phases, there is a high probability that the drug will fail (12 % is successful in phase I, of these 21 % in phase II, and of these 58 % in phase III). There is also risk if Cantargia will find a partner. Thirdly, much research is conducted in the field of cancer and new medicine is rapidly developed. Cantargia

CybAero (First North, 2007)

CybAero are making Remotely Piloted Aircraft Systems (RPAS), unmanned helicopters, better known as drones. Their product is both the helicopter and the system needed for the task. The market for unmanned aircrafts will grow rapidly in the future, since the tasks the drones can perform, is done more cost efficient and safer with an unmanned helicopter than by a helicopter with a crew. This could be in areas of natural disasters, war zones or fishing inspection. For CybAero there is a significant after-market in service of the systems.

Risk: High. The product on the market and a large framework agreement – but have failed to deliver smoothly. CybAero

Dignitana (First North, 2011)

Large-Right-DigniCap™-Cooling-Cap-Set

The cooling cap of Dignitana

Dignitana is in medical tech and their products cool patients in cancer treatment to avoid loss of hair due to the chemo-treatment of mainly breast-cancer. The product and the treatment was approved by FDA in December 2015 for breast cancer and in 2017 for other cancer forms. The approval opened the large American market for Dignitana. The business-model in the US differs from the Asian and European model, where partners sell the system to hospitals. In the US the business model is pay-per-treatment, which gives a steadier turnover.

Risk: Low to medium. The product is at the market, a substantial media awareness of the product and the clinical documentation is at hand. A possible downside is that the product is nice-to-have in a health sector constantly under pressure of more and more expensive need-to-have cancer treatments. Dignitana

Fortnox (Nordic Growth Market, 2007)

Fortnox is an IT company offering a cloud based accounting system. The company is market leader for cloud based systems in Sweden and the costumer segment is SME’s and to some extent NGO’s. The company passed the milestone of 100.000 customers in spring 2015. Over the last 6 years Fortnox have had had two-digit growth rates (in average 25 %), has a market leading position and is diversifying its services.

Risk: low. There is a high growth rate and Fortnox is paying dividend. My personal judgement is that the listing of the share on Nordic Growth Market (NGM) to some extend limits the possible investor profit. Fortnox

Heliospectra (First North, 2014)

Heliospectra is a producer of intelligent LED light to greenhouses. Based on LED technology combined with intelligent software, light can make plants grow faster, with better quality, better taste, and with less energy consumption compared to traditional greenhouse lighting. Furthermore, LED produces less heat than ordinary lamps, so controlling the environment in the greenhouse is easier. The market for greenhouse plants are rapidly growing especially for plants for medical use. In parts of the US, the legalisation of marihuana has created a new and fast growing market. In 2017 focus shifted from cannabis industry to food sector. Heliospectra is at the point of market penetration.

Risk: Medium. The product is ok and its effects are well documented. The rise in sales however have been slow during 2016 and 2017. Heliospectra

Hexatronic Group (Nasdaq Small Cap, 2015)

Hexatronic provide passive equipment for fibre network, cables, boxes etc.. Fibre network are a fast growing industry and with a home market ahead of many countries, Hexatronic are well positioned for gain larger market shares of this growing market.

Risk: Low. The company is profitable and growth are high. Hexatronic

Nexam Chemical (First North, 2013)

Nexam Chemical is in the plastic industry. The Company produces additives to plastic, ‘crosslinkers’ that can enhance the plastic and give it new properties: strength, heat resistance. Nexam has a long list of patents for different products, but sales have been low and the market penetration very difficult. After 2015 a new CEO (VD in Swedish) have changed Nexam from a development company to a more business-focused company. Consequently sales are rising – but slowly.

Risk: Medium. Patents and products are ready, but sales are rising slow. Nexam Chemicals

Phase Holographic Imaging (Aktietorget, 2014)

Phase Holographic produces equipment to laboratories, more precisely microscopes able to film growth in cells. With the equipment, it is possible to film and follow the cells without killing them and even filming cells over time to observe their life cycles. Phase Holographic is a one-product company. They have succeed in placing their equipment in a number of leading laboratories and has an impressive line of scientific papers showing results made possible with the technology of Phase Holographic.

Risk: Medium. Sales rising and well accepted product. Phase Holographic Imaging

Recyctec (Aktietorget, 2013)

Recyctec is a clean-tech company who specializes in purifying used glycol.

Glycol is poisonous and poses a danger to the environment and glycol is therefore a hazardous waste. Hitherto the only way we could dispose it was burning it. Recyctec can purify the glycol in order for it to be re-used. We refine glycol from crude oil and it is therefore a non-renewable resource. In addition, the demand for glycol exceeds supply – and with no substances to substitute glycol, the market for purified glycol seems very attractive.

At present, there are no known competitors to Recyctec. This gives the company a unique market position in a world where recycling is the trend. The first tank full of purified glycol left the factory in April 2015 and break even is expected in 2018-19.

Risk: Medium. Sales are rising slowly and in most countries there are al legislative push to recycle. Therefore there are plenty of used glycol to process. Recyctec

Waystream (First North, 2015)

Waystream provide services and routers, switches etc. for fibre broadband.

Their market segment Fibre To The Home (FTTH market) and customers are smaller provideres of town nets and local networks. They today are active on a number of European countries as well as a few Asian markets. Broadband with fibres from the end user is common in the Nordic countries, but is still an emerging market in many large European Countries including Germany and UK.

Risk: Low. The company is close to break even, has an established customer base. Waystream

The top image shows the relative size of each share in the portfolio.

I keep a trigger list of each company. Read here on events expected to change the share price. I evaluate investment possibilities using my own EGS-model.

Read more about my blog here.

19 thoughts on “Growth share portfolio

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