Indeed, the tax leakage on dividends + fx costs are a very important consideration when it comes to foreign stocks. Almost everyone, me included, tend to forget this. (Indeed, most aren't even aware, and/or doesn't understand the importance of reverse compound interest.)
HUFV is probably mostly just a good stock for Swedes, since its a good "place to park your cash" while waiting for better opportunities. (Kinda move in and out of it in a dynamic, fast-footed fashion. Transaction costs make that a worse idea with foreign stocks, of course.) Actually, Swedish stocks generally might be a bad idea for US/Euro zone citizens, since we have our own little currency. Maybe I should turn this thread into "European stock picks" instead (but I'm not so good at that, I'm afraid...!).
There is, however, the very real possibilty of a looming buyout. The investment company Lundbergs -- controlled by Fredrik Lundberg, Sweden's Warren Buffett (in my eyes) -- has 88% of the voting shares. When he has > 90%, he can buy the company at his will. (Market price or higher -- given that he shuns publicity, he is unlikely to low ball the bid. But still, that's a very real risk. I think he would be allowed to do that, although the rules/laws are somewhat unclear to me. Also, I'm not sure if it's 90% of the capital or 90% of the votes to get to force a buyout. Should contact Swedish SEC and find out for sure.)
He and his daughters (who are to inherit his empire) have been buying last weeks, as stock price has declined. Might be trying to casually vacuum up some stocks to reach that 90% treshold. |
