Euro on Sunday reveals: Something is wrong here! Bauer AG – Don’t be afraid of watering down | message
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by Jrg Lang, Euro am Sonntag
7.2 million shares are to be issued, which is almost 40 percent of the outstanding share capital. The strongly fluctuating development of the past few years, high capital consumption, deep red numbers in 2019 and a loss in the Corona year 2020 have caused the equity ratio to drop. Now the equity account is to be refilled. Measured against current prices could be around 70 million euros to flow in. Certainly, the threat of dilution in a business that is mixed at the same time is not an encouraging starting point for an investment. But investors shouldn’t write off the civil engineering and special construction machine specialists that quickly.
Bauer has since Initial public offering in 2006 gone through several crises. A look at the course history shows that brave people who got involved in the lows of 2016 or the end of 2018 were able to earn a lot as a result. The share is currently trading at a similarly low level again. There are three reasons why there is a chance of a comeback in this cycle as well. For one thing, Bauer recently joined the company Alfons Doblinger an entrepreneur among the shareholders (share almost 20 percent) who is considered cost-conscious. He will be just like that Bauer family (Share 43.8 percent) participate in the capital increase. Second: Bauer had recently shown an improvement in earnings, and in the fourth quarter even exceeded analyst forecasts. And ultimately the environment improves. Much of the economic stimulus programs that are being launched around the world go to infrastructure. In addition, the high raw material prices ensure that exploration is ramped up. Bauer is represented in both fields.
Our columnist Jrg Lang has been dealing with stocks since 1988.
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