It is a good time to buy Swedish stocks, with the strong dollar and euro. (I can't for the life of me understand how the euro is strong right now, though, with the southern economies looking weak as ever, ECB keeping rates absurdly low to keep these subpar countries floating, and possiblya looming Euro Crisis 2.0.) Especially classic export companies – those that have their income in dollar, but expenses in SEK – should benefit.
I have sold off some US stocks which have done comparatively well during the past few months. In some cases, I'm significantly in the green even though the stock price is slightly lower; the media and 'experts' only talk of currency risk, but there's currency opportunity, too...
There was a time, a year ago or two, when it seemed as if every single Swede owned shares of Evolution. Now, the stock has come down quite a bit from its high. P/E of 26 or so really doesn't seem expensive for a co. with (ever-increasing) 50%+ net profit margin. That being said, it really can't get much better though; this is the opposite of a turnaround; possibly the best co. I've ever seen, financially speaking. Insiders have sold quite significantly too in the relatively recent past. However, a lot of this should be in the price at this point. I too own 'EVO', however not in any significant size, as I this company is almost "too good to be true". P/E should probably be closer to 50, rather than 25-ish – but I'm so used to buying at 10 or below, that above 20 or so is always scary for me. |
