“Q3 Highlights: Energiekontor, Fuchs, Eurokai & More You Can’t Miss!”

Energiekontor: A Hidden Gem in Turbulent Waters

Let’s get real: Energiekontor has been struggling to keep its head above water in 2024, and its performance has been disheartening, especially compared to its renewable energy peers. It’s tough to pin down exactly why the stock has been sinking like a stone. Sure, the political wave sweeping right—yes, I’m looking at you, Trump and Germany—has cast a shadow over the renewable sector, contributing to the slump. And to add fuel to the fire, the company recently issued a 2024 profit warning that certainly didn’t help matters.

But hold on! The mid-term guidance for 2028 remains intact, and the profit warning seems to be more about timing than a fundamental flaw. It looks like a big UK wind farm project just needs some regulatory approval before it can take off. If all goes well, next year could turn out to be a game-changer, particularly for their developer segment.

Despite the fog of political uncertainty, I firmly believe Energiekontor stands as one of the most compelling opportunities in the renewable energy sector. Check this out: I recently compiled a table showing that among its European peers, Energiekontor is not only the most affordable but also the least leveraged company:

Fuchs: A Bright Future Ahead

Just a couple of days ago, I had the fantastic opportunity to attend Fuchs’ capital markets day at one of their client’s manufacturing sites (shoutout to DMG Mori in Pfronten!). The insights shared were enlightening, and here are a few key takeaways:

• The company’s exposure to European ICE automobile production is remarkably low, giving it a diverse client portfolio.
• Fuchs boasts a robust, entrepreneurial culture with an intense focus on customer satisfaction (They hold capital market days right at client sites!).
• Many of their applications face high barriers to entry due to stringent certification and regulatory requirements.
• The potential successor to Stefan Fuchs left a strong impression during the presentations.

While the stock isn’t the cheapest on the market, I genuinely believe the more affordable common shares present tremendous value, thanks to the company’s high caliber.

Eurokai: Riding the Wave of Positive Change

In classic understated Hanseatic fashion, Eurokai recently dropped a positive profit warning that has everyone talking. They’ve had to adjust the value of the Wilhelmshaven terminal, which was written down to nothing back in 2020. Sure, it’s just an accounting adjustment, but it’s a clear indication that things are on the upswing. I’m particularly excited for 2025 when the new shipping alliance between Maersk and Hapag is expected to boost traffic to Eurokai’s terminals significantly.

Hermle: Investing in Tomorrow

Recently, there was an intriguing interview with Hermle’s CEO in a specialist tool publication. Despite issuing a trading update that showed significantly better numbers than competitors, investors seemed spooked by Hermle’s decision to ramp up investments in R&D and talent acquisition—moves that will likely weigh down profits in the short term. Personally, I admire this counter-cyclical strategy. It’s bold, and it demonstrates confidence in their long-term vision. We’ll see how this unfolds, but Hermle is undoubtedly a stellar company even in a challenging environment.

Laurent Perrier: A Toast to the Future

Not long ago, an outstanding write-up on Laurent Perrier caught my eye. Recently, the company released a trading update that, at first glance, didn’t look too promising, but it aligns with industry trends. Since then, the stock has seen a slight recovery. Sure, times are tough, but I still view Laurent Perrier as a stock worth holding for the long haul. Cheers to that!