We summarize our largest conviction ideas, we currently have in play in Sweden and Norway. We present today our larger positions. We will bring our smaller positions in the next few days.
Biovica
Biovica is Sweden based company that developed breast cancer tests, that can early detect the severity of the cancer and indicate, whether the selected medication is having effect.
Early this year, one of our top convictions ideas was Xbrane. As we predicted the share price doubled over a period of few weeks. Biovica is similar play like Xbrane. It is awayting FDA approval, which Pareto analyst expects with 95% certainty. The reason is Biovica over 30 studies from best US and European hospitals. You do not often see such study strength. The FDA approval should happen Oct/Nov.
I believe Biovica offers the best risk/reward in Scandinavian Healthcare. The share price should at least double this year and potentially multiply further next year. If you doubled your money playing Xbrane with me, this ride will be even better. Full Biovica investment thesis:
Linkfire
Linkfire is providing smart links for music streaming industry. They have 70% market share and growing strongly in its innovative field. Five bullet point summary on Linkfire opportunity:
- There are many streaming companies. But there is just one dominating service company that serves most of them with 70% market share.
- Linkfire connects consumers on social platforms who wanted to download a song to music streaming companies that provide the content. Linkfire collects revenues from both.
- Linkfire revenues have grown at 40%-60% CAGR with a stable 76% gross margin. The growth is accelerating further in 2021.
- Linkfire was a victim of a difficult IPO timing. If it was placed in January or February, its share price would’ve doubled on debut.
- Very strong catalysts in the next six months should cause the share price to double.
Full investment thesis is in the article below:
Pyrum
Pyrum is the global leader in chemical recycling of tires, owned by BASF and Continental and backed by Michelin and other majors.
We published article on SeekingAlpha on Pyrum. SeekingAlpha selected our article in PRO Editor Selection of Best Ideas on SeekingAlpha. This indicates SeekingAlpha editors rank the idea highly.
Idea Summary:
- Annually, around 31 million tonnes of used tires need to be recycled. Currently, 56% is land-filled. This practice is banned in most developed markets now.
- Pyrum is the global leader in the chemical recycling of tires, addressing the global tire waste problem with a patented pyrolysis solution, recycling rubber into high-value products.
- Its first plant has been in continues operation since May 2020. The capacity is sold one year forward.
- The company has global technological leadership years ahead of the competition.
- Its strong partners Continental, Michelin, and BASF support the investment case.
Original investment idea published on SeekingAlpha
https://seekingalpha.com/article/4459088-pyrum-innovations-co-invest-with-basf-and-continental-in-the-global-tire-recycling-leader
Quantafuel
Quantafuel is the global leader in plastic recycling. BASF is the largest investor. The company lost 70% of its market capitalization in the last 6 months due to the delay in delivery of start of continues production. We believe the company has turned the corner. It has appointed a new CEO last week, and is due to install new equipment in November which should bring the company into continues production. If that happens the share price potential is 200% within a short term period. It should regain the share price levels where it was trading when the management announced production delay. This is expected in Nov/Dec. Risk reward is very appealing. We estimate 20% downside if there is further delay, and 200% upside if the production goals are achieved. Full investment thesis is below:
Africa Energy
AEC is our top oil company position. I believe it has a potential to triple over the next 12 months.
There is one big difference between AEC and other oil plays. There are many oil companies that have great portfolios and are buying cheaply oil assets from the majors. Where AEC differs is – it has one of the top gas condensate assets that it is intends to sell. Pareto believes the sale should happen within 12 months. The sales price is most likely a multiple of its current market capitalization. If there is a low risk high return play, it is AEC.
Latest update
Full investment thesis:
Disclosure:
The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice.
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