Bufab surprises and excels
Carnegie Småbolagsfond returned 4,7% in April.
- Dometic was the fund’s best share in April, with a return of 13%. There were concerns ahead of the interim report that Easter and the cold weather may have impacted sales. There is also an underlying worry that the company’s customers, caravan and camper manufacturers, would feel the effect of a weaker economy. Our view is that Dometic’s sales are largely for the aftermarket, which gives stability, and that the motorhome market is to some extent driven by structural demand as many older people have sound finances and more and more young people are looking at this kind of holidaying. The report was formidable across the board, with good sales and profitability that was far better than expected. In light of this, we believe the stock is attractively valued.
- Atrium Ljungberg reported good performance for the first quarter. Perhaps more interestingly, it is initiating a share buyback. We have long considered that the value of its net assets greatly exceeds the company’s share price, and we therefore believe it is rational for the company to buy back stock at a considerable discount to net assets. The company’s financial position is very strong and we estimate that most key ratios will be positively affected by the buyback. In a longer perspective, the company’s project activities have good potential and we believe that its properties have scope for continued good performance. The stock returned 13% in April.
- Bufab repeated its fine performance of the past year in the first quarter. Given the good industrial economy in its main markets, good profits were expected. But the earnings were a surprise nonetheless. It is gratifying to see that its international operations are performing soundly and that its acquisitions seem to be delivering well in line with expectations. This strengthens our belief that the company will continue its international expansion, which means we see an upside in the valuation. The company’s management is highly competent and a clear main shareholder bodes well for a long-term expansionary strategy. The stock returned 12% in April.