Hybridan Small Cap Feast - 26 Feb 24

26th February 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obj...

Aura Investments Ltd: 1 director

A director at Aura Investments Ltd bought 638,488 shares at 5.700ILS and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years ...

More Q2 reports

The Q2 reporting season continued with results from Aurora Eiendom, KMC Properties and Kojamo. Norges Bank raised policy rates by 50bp, as expected. The weighted-average implied EBITDA yields on the stocks we cover are 4.11% for 2022e and 4.56% for 2023e.

HOLD the line

Our cautious sector view was underlined by our reiterating five HOLDs this week following the companies’ Q2 results. We note our Profit from property management estimates for Nyfosa are 17–21% below Infront consensus, which we believe underestimates Nyfosa’s interest-rate sensitivity and the limited hedging effect from its interest caps. In a scenario with signs of improved bond market conditions we see the most potential benefit for Balder and Castellum, as well as some for Corem. The weighted-...

Reporting season underway

Several sector names reported Q2 results. As we expected, most chose not to reflect the change in fundamentals and rising interest rates we have identified, with only Entra highlighting the new market terms. We note the markets are continuing to disregard asset write-ups due to higher interest rates. The weighted-average implied EBITDA yields on the stocks we cover are 4.27% for 2022e and 4.86% for 2023e.

Bond turmoil and new 52w lows

The sector sell-off continued this week on rising interest rates and higher credit margins. In the bond market, there was a major sell-off of SBB bonds. A Diös property sale to Point Properties was terminated. Swedish residential prices have started to fall. The weighted-average implied EBITDA yields on the stocks we cover are 4.37% for 2022e and 4.79% for 2023e.

Interest rate rally, strategic review, and asset sales

Long-term interest rates (swap rates) continued to rise this week as the Fed raised the Fed funds rate by 75bp, leading to another sector sell-off. SBB Norden announced a strategic review of its holding in JM. The sector continued to decline on rising interest rates and higher credit margins. The weighted-average implied EBITDA yields on the stocks we cover are 4.46% for 2022e and 4.81% for 2023e.

Northern Lights