A Swedish REIT, another linked to the exploitation of marijuana crops, a Canadian mining company that produces uranium, an ETF focused on companies that provide services to the growing group of older people, a Portuguese manufacturer of A4 sheets and gold are the investment proposals revealed by some of the best performing asset managers in 2021 during the forum ‘XTB Opportunities’.
Six renowned management and analysis professionals shared these investment ideas last Saturday at an event organized by the broker on-line listed and attended by more than 33,000 people, mainly individual investors, traders and management professionals usually.
TrueValue proposes to take positions in a Swedish REIT, called SBB, Europe’s largest developer of rental housing, with 59,000 apartments in project. It is an entity that offers investors a return of more than 20% supported by a five-year plan to triple its size and by “solid multiples that support these predictions”, as well as its tracking historical, according to Alejandro Estebaranz, president and director of Investments of the fund. In fact, its intrinsic value at this time is 60% higher than its current price.
A classic and recurring asset is added to these investment options: gold. Pablo Gil, chief strategist at XTB, considers that the precious metal is emerging as a winning bet because real interest rates are becoming more negative, since “we are living in a stock market bubble”. “A foreseeable recession due to the withdrawal of monetary and fiscal stimuli and the subsequent stock market correction are the ideal breeding ground for gold to shine again,” he argued.
Cobasfor its part, bets on Semap, holding company Portuguese controlled by the Queiroz Pereira family with activities in the manufacture of paper and cellulose (Navigator, 70%), cement (Secil, 100%) and environment (Etsa, 100%). Although the paper business is experiencing a certain decline due to digitization, the fact that Navigator is the largest producer of A4 office paper in Europe and is among the most cost-efficient on the continent, without suffering the ups and downs in the price of pulp, places in an “excellent position”, in the opinion of Rocío Recio, relationship with investors in Cobas Asset Management.
In addition, it has the best margins in the sector and, by having integrated production, it has a margin of reaction in the event of a possible drop in consumption. Navigator continues to gain market share, is managed with a long-term view, and trades at a significant discount to the value of its assets.
For his part, Javier Ruiz, Director of Investments at Hourspresented as an investment opportunity a North American REIT which operates in rental of spaces for growing marijuana. Power REIT It began in the 1960s renting some railway assets and in recent years it has diversified into the operation of facilities for cannabis farmers, in the heat of the legal vacuum that still conditions this activity and that allows growers to obtain high margins. Ruiz expects the Power REIT, which has grown tenfold in value over the last two and a half years to trade at $14.5, has the potential to triple that value simply by applying multiples of comparable entities.
Aging or uranium
Joaquín Robles, XTB analyst, emphasized the progressive aging of the world population and the range of investment opportunities that are opening up to meet the needs of this group. They are, said Robles, a growing demographic group due to the upcoming retirement of baby boomers, which accumulates 80% of the wealth and that in Spain exceeds ten million people, 15% more than a decade ago. Robles’ investment proposal is an ETF –iShares Aging Population UCITS- that brings together companies and sectors that provide services to seniorshighly diversified (356 positions, none higher than 0.6%) and with an annual return of 8.7% in the last three years.
The uraniumand more specifically the Canadian producer camacois the proposal of Azvalor, summed up Carlos Romero, partner and director of Institutional Investor Relations at Azvalor. The metal lives a relative boom since 2017 by making its way again as a key energy source to face the challenge of generation without fossil fuels. This metal has risen more than 140% in four years and in parallel, Camaco, the most efficient producer in the sector and with good assets, has risen 150% on the stock market since that year and is emerging as a good long-term purchase opportunity. supported by a growing demand for the metal that serves as fuel in the generation of nuclear energy.