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Swiss Small and Mid Caps – After price correction: Can these Swiss shares now access? | News

Monday, September 4th, 2017 | Economy

The euphoria, which began in the markets in November 2016 due to a brightening economic environment and the election of Donald Trumps to the US presidency, has disappeared in recent months. This is clearly reflected in the price development of the SPI:

Course development SPI since November 2016, source: cash.ch
The SPI has increased by more than 20 percent since November 2016, but since May 2017 a sideways movement has begun. Apart from political and geopolitical reasons, the skepticism on the financial markets also has to do with the now high valuations of numerous shares. Small and mid caps in particular now have a lot of expensive stocks.
For example, the estimated price-earnings ratio (P / E) 2017 of the sensor manufacturer AMS is 68 and that of the telecom provider Sunrise is 48. These are very high values, in principle, P / E of more than 20 are already considered expensive high valuations in individual cases can be justified by excellent prospects for the future.
Many investors have been on the side line for months and are waiting for a correction before they can access it again. A correction, which is already a fact for some secondary values ​​on the Swiss stock exchange. cash introduces four such titles and says where the entry might be worthwhile (to the table):
Hochdorf – expensive and risky
Anyone who has deposited shares of Hochdorf in his depot immediately after the SNB's minimum price resolution in January 2015 and has repurchased it in January of this year may look forward to a tripling of the value. But since the peak of 340 francs on 11 January, the high-altitude flight is over. At first it still went sideways for a while, but the price fell by almost 20 percent in the last three months.
Hochdorf wants to grow above all with the expansion of the baby food business. Last year, a majority stake in Pharmalyys – a marketer of baby food – was bought. This business is considered to be very high-margin and helps to gain a foothold in North Africa and the Middle East. However, the risk of this strategy is high, these regions are considered unstable. This can rise, but does not have to. In addition, Hochdorf writes red figures in Germany and Lithuania.
Conclusion: Despite a clear correction the Hochdorf share with a P / E ratio of 2017 of 33 is still very expensive, the risk is high. Industry competitor Emmi is much cheaper (P / E 24).
Cembra – the constant dividend guarantee
Cembra is not in a growth market. The consumer credit business is concentrated in the manageable and largely saturated Swiss market. Moreover, in mid-2016, the profit outlook for consumer credit in Switzerland declined slightly from 15 to 10 per cent in 2001, which also impacted the share price in the two-quarters of the year (-12 per cent). All in all, Cembras business is still highly profitable, the cash stocks high. The excess liquidity can be paid to the shareholders: 5.3 percent is the current dividend yield.
Conclusion: The correction of the last months has done the Cembra share well, it is at a five-month low. With a P / E ratio of 17 and the attractive dividend policy, a favorable entry moment has now come for long-term investors.
Autoneum – cheap, but not without risk
The Autoneum industrial group, which has two well-known anchor shareholders with Michael Pieper (share 20.3 percent) and Peter Spuhler (17.2 percent), is a leading supplier in the areas of acoustic and thermal management of cars. The crisis in the autobahn is, logically, not without a trace to the car supplier: the exhaustion scandal from the end of 2015 followed this July, the suspicion of illegal price agreements by German car owners at the expense of consumers and suppliers. This increased the share price of Autoneum. In the last three months, it is minus 8 percent.
The good thing about it: The concerns of the industry left Autoneum on an attractive valuation. Currently, the P / E of 2017 is only 13. For a company with attractive margins and good future prospects, this is a very deep value. However, the near future is not free of problems: in North America – the main market of Autoneum – a further weakening market is expected for the second half of the year. Moreover, further rising commodity prices could put a strain on the margin.
Conclusion: The Autoneum share is currently very favorable, but due to the problems in the car sector is not without risk. The company is, however, very well positioned, so that an investment will pay off in the long term.
Huber + Suhner – how is the margin going on?
In the middle of June Huber + Suhner's share of components manufacturers for electronic and optical connection technology rose to an all-time high of CHF 73.80. After that, profits were taken. The high profit decline in the first half of the year, which was announced at the end of July, further boosted sales. In the last two and a half months, the stock lost 25 percent and costs 55.80 francs.
According to an analysis by Bank Vontobel, the price pressure in the Fiberoptics division is the main reason for this. The price pressure and the unfavorable sales mix in this area are likely to remain in the second half of the year and continue to push the margin. However, not everything is negative: incoming orders and sales were surprisingly clear in the first half of the year. In addition, the company has always been convincing with innovative products, which also provides hope for the future.
Conclusion: Despite correction, Huber + Suhner with a P / E of 2017 is still not favorable. Although nothing points to a price fall, but at the moment is also no entrance.

Source: cash.ch

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