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Non-Tech : petal's Swedish stock picks

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From: petal	3/3/2022 5:29:53 PM
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Hufvudstaden (HUFV). This RE co. is trading at around 40% discount to NAV. The reason? It is too conservative. Very low debt, very little action in buying and selling (due to the market being overheated and they are preserving capital for better opportunities, just as the capital allocation school book says to), etc. They own buildings only in the most premium parts of Stockholm and Gothenburg. In an environment where aggressive RE co.'s are trading at unreal premiums (some >100%), this seems just as absurd a mis-pricing. The investment co./closed end mutual fund Lundbergs owns 45 % of the capital and 88% of votes. At 90 %, they can buy the co. out from the stock market if they like. Fredrik Lundberg, Sweden's Warren Buffett and CEO of Lundbergs, is squeeky clean. He wouldn't buy out the co. at an unfair price to shareholders. Any rate, downside is very limited since he can't very well buy it out for less than market price, and would almost certainly pay a "buy out premium". Anyway. Won't see huge capital gains in this one. This is a place to park money, with little to no downside. I feel safer putting the money into this, than into the bank.

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