Enterprising Investor Forum » EU Traded Stocks

Take a look at Rio Tinto

ei-forum — Wed, 11 Feb 2009 08:08:11 +0000

Rio Tinto (RIO.L) is an international mining group, combining Rio Tinto plc and Rio Tinto Limited. The Company’s principal product and global support groups are Iron Ore, Energy, Industrial Minerals, Aluminum, Copper, Diamonds, Exploration and Technology.

Rio Tinto has an extremely high quality range of assets and once up and running, these assets are low cost and long life deals. Like most miners, they have been suffering with the extreme correction in commodity prices but – at this stage of the cycle – all the fundamentals look great and as opposed to other miners, we like the fact that the management at Rio seems to always be striving to improve cost efficiencies, scale and reduce their debt burden, whilst being fairly open and communicative with the investment community. We feel that the key issue at this stage is the focus on reduction of debt. Furthermore, another reason to keep any eye on this company is the proposed deal with Chinalco.

Our readers know that we feel that the commodity boom is far from being over. Prices will pick up again and when investing in this kind of company, it is important to be countercyclical and enter at the bottom of the cycle.

Please read our disclaimer.

European Markets Bounce

ei-forum — Mon, 13 Oct 2008 09:58:39 +0000

It’s only fitting that we update our previous post with some better news…

European Markets

ei-forum — Fri, 10 Oct 2008 13:21:39 +0000

Here is an overview of the European markets before we open here in the US:

Again, not a pretty picture….

Profit from CO2

ei-forum — Thu, 24 Jul 2008 10:48:48 +0000

One of the mega trends that all investors should be looking at is CO2 reduction. How this will develop and how to profit from this is not a very easy call as this is a very complex issue and moreover, one which is highly impacted by legislation and enormous power/interest struggles.

One company we recently came across could be an interesting way to gain some exposure to this and despite not having analyzed it in detail we still wanted to share this with you.

Climate Exchange (mainly listed in Europe but also in the US CXCHF.PX) owns the European Climate Exchange which accounts for roughly 80% of exchange-traded volumes of CO2 in Europe and also owns the Chicago Climate Exchange, which is the only CO2 emissions trading platform in the US.

We are sure that there are other exchanges that will try to challenge them and enter this market but they will be playing catch-up. Goldman Sachs has been behind this project and the own 10% of Climate Exchange PLC… and we all know that Goldman usually makes winning bets.

We will continue to keep an eye on this sector and hopefully bring you some further updates in the near future.

Please read our disclaimer.

Heliad Update

ei-forum — Wed, 15 Aug 2007 18:31:35 +0000

Our view on this company remains unchanged as they keep delivering.

Heliad (HPB:DE) posts record results in first half of 2007
Intrinsic value (NAV) of Euro 1.36 at reporting date
Outlook remains highly positive

Link to the full press release: here.

Heliad Equity Partners

ei-forum — Wed, 01 Aug 2007 15:54:49 +0000

With all the recent negative press surrounding the Private Equity sector, some readers may be surprised to see us writing about an interesting opportunity in this sector. Furthermore, this is also our first post about a European traded stock!

Heliad Equity Partners (HPB.DE) is an investment concern that focuses on companies in predominantly German-speaking countries. It invests in companies that are undergoing a strong growth phase or that are in a special situation. Its goal is to generate an above-average risk/return ratio for its shareholders. With Heliad Equity Partners, investors can participate strongly in the growth prospects of traditional German SMEs as well as rising German technology companies. Moreover, they just announced their biggest investment to date in SHB ( which with its subsidiary) is the German market leader for savings plans based on closed funds. The company focuses on the real estate investment class, which is a very strategic investment due to the fact that experts agree that the German real-estate market has lagged other European countries and is due to spike.

It is always difficult to look at ratios for this kind of company but here is a quick overview of some interesting numbers:

P/E Ratio: 3.85
P/Book: 0.86
BookValue: 1.29
ROA: 18.68%
ROE: 20.92%
Net Margin: 65.18%
Operating Margin: 65.18%

We feel that the shares have been unjustly punished due to the recent campaign against the Private Equity sector and also due to recent market conditions. Despite the fact that some deals will suffer, we think that the more established firms have already factored recent events into their deals and will still be able to drive the business forwards. Furthermore, investors shouldn’t forget the effect that past deals will have on future earnings.

Heliad shares closed yesterday at 1.05 Euro and the latest Net Asset Value per Share is of 1,36 Euro. We are sure that when 2nd Quarter earnings are reported on August 31st, investors will see continued strength in this company.

This is a company with a strong track record that keeps improving every day. We strongly encourage you to do some research and find out for yourselves … a great place to start is by reading through the annual reports in chronological order to really see the step changes that this company keeps on making.

Here is a link to all analyst reports and research issued on the company: Link. Most recent reports have a Buy rating with a 1,90 Euro target price.

For a closer look at the company, please visit www.heliad.de.