Unirea Shopping Center SA (SCDM; Bucharest Stock Exchange)

Romania-based company that operates two shopping centers in the Romanian cities of Bucharest and Brasov that can be bought for a 50% discount to company’s book value.

MCap $37M

PE 7

PBv 0.5

PS 2.9

ROE 6%

DY 0%

Yearly stock trading volume is less than 5% making it an overlooked stock. 

Unirea Shopping Center SA was established in 1975.

Unirea Shopping Center SA started trading on the Bucharest Stock Exchange in the year 2004.

Unirea Shopping Center SA is primarily engaged in the rental of commercial real estate properties. The Company operates two shopping centers: Unirea Shopping Center in the city of Bucharest, which consists of three buildings with a total rentable commercial area of 44,500 square meters, and Unirea Shopping Center, located in Brasov, with a total rentable commercial area of 16,900 square meters. Additionally, the Company is involved in the operation of parking lot in Bucharest, which has 939 parking spaces located on seven floors. 

Major shareholders of Unirea Shopping Center SA are The Nova Group Investments Romania SA with ~80% stake and SIF Muntenia with ~10%. Individuals and other investors hold less than 10% of the company’s stock.

Company’s website: http://www.unireashop.ro/

Long Unirea Shopping Center SA as of 2/08/2020

Purchase price: 61 RON

Olainfarm AS (OLF1R, Nasdaq Riga)

Latvia based pharmaceutical company entangled into dispute between shareholders trading for less than 5 times last year’s earnings, growing top line at around 10% annually with consistently high ROE, trading at below company’s book value. We believe that shareholder disputes will resolve in time and will not fundamentally effect Olainfarm’s business prospects.

MCap 99M

PE 4.4

PBv 0.8

PS 0.7

DY 1% (5Y average)

ROE 14% (5Y average)

CAGR is 10%

Yearly stock trading volume is less than 10% making it an overlooked stock.

Olainfarm is the leading manufacturer in the chemical and pharmaceutical sector of the Baltic States with more than 45 years of experience.

Listed on NASDAQ Riga since 1997.

Olainfarm is is engaged in the manufacturing of finished drug forms and chemical pharmaceutical products in the Baltics. The group operates its activities through Medicine Production segment, Wholesale segment, Retail segment, Compression Materials segment and other segments.

Olainfarm exports to more than 60 countries worldwide and its main export markets are Russia, Ukraine, Belarus, The Netherlands, Kazakhstan, Uzbekistan, and
Germany. Farthest export market is Australia. Net sales break down geographically as follows: Latvia (29.4%), Russia (29.9%), Belarus (10.8%), Ukraine (9%), Europe (7.6%) and others (13.3%).

Olainfarm produces cardiological, neurologic, diuretic, spasmologic and antiallergic drug preparations, medicaments treating the digestive system, antibiotics and food supplements, as well as various active chemical ingredients and raw chemical materials. Its products include Amlodipine, Clonazepam, Euphillin, Furosemide, Furagin, Midolat, Protionol and Gripoflex, among others.

Company shareholders, who own 5% or more of issuer’s capital: Estate of Maligins Valerijs 46%, Nika Saveljeva 7.8%, Signe Baldere-Sildedze 7.8%, Irina Maligina 7.8%.

Financials and other info: https://lv.olainfarm.com/en/investors/

Long Olainfarm AS as of 01/21/2020

Purchase price: 7.22 Eu

Linas Agro Group AB (LNA1L; Nasdaq Vilnius)

Lithuania based agricultural holding company currently trading close to an all time low valuation due to recent unfavorable climate conditions negatively impacting company’s earnings. We expect unfavorable weather patterns and hence company’s earnings to mean revert in the near future.

MCap 96M

PE negative (5Y average is 7,5)

PBv 0.57

PS 0.13

DY 1.2% (5Y average)

ROE 3% (5Y average)

Compound annual growth rate (CAGR) is 5%

Yearly stock trading volume is less than 3% making it an overlooked stock.

Established in 1991. The company started its business with the export of the oilseed rape to Western Europe. The Group has been growing naturally and through acquisitions, engaging in new activities.

Currently, Linas Agro Group AB controls 38 subsidiaries in Lithuania, Latvia, Estonia and the Ukraine, having over 2,100 employees.

Listed on NASDAQ Vilnius since 2010.

Linas Agro Group AB activities are structured into five basic segments: The Grains and Oilseeds segment includes wheat, barley, rapeseed, sunflower and linseed, among others; The Feedstuffs segment’s activities include international supply of and trade in secondary products of the food industry, such as sunflower cake, sunflower meal and others; The Agricultural segment covers supplies of such products for crop production as seeds, fertilizers, plant protection products, and agricultural machinery; The Farming segment covers primary production of agricultural produce, including diary production, as well as cultivation of grains, rape and sugar beet, and the Other Products and services segment covers sales of solid biofuel.

Company shareholders, who own 5% or more of issuer’s capital: Akola ApS (Denmark) 69%, Darius Zubas (CEO) 11%.

Financials and other info: https://www.linasagrogroup.lt/en/to-investors/

Long Linas Agro Group AB as of 01/21/2020

Purchase price: 0.61 Eu