Lind Research #1

Welcome to Lind Research! This is our free weekly newsletter, in which we scan the Nordic stock market for key news and movements that deserve a closer look.

Explore our latest research articles, “BETCO: Soft Guidance and Uncertainty” and “ASMDEE: Management Owns SEK +550m of Stock”.

Weekly Highlights

Buffett’s 2024 letter to shareholders published

The annual letter from Warren Buffett to Berkshire Hathaway’s shareholders was published on Saturday. Find it here.

Elliott bets against Nvidia

The Hedge Fund Elliott Management has bought options against Nvidia, betting on a decline in share prices. The firms have previously stated that they view Nvidia as a bubble and that the AI hype is exaggerated.

Nvidia will report its Q4 results after the market closes on Wednesday. The company is expected to post quarterly revenue of $38.15 billion, up 73% year over year, and Net income of $20.01 billion, up from $12.84bn a year earlier. Nvidia’s performance weighs heavily both in the S&P 500 index and Nasdaq.

Flat Capital sells its Truecaller stake

Flat Capital has sold all its shares in Truecallet (TRUEB) for a value of SEK 41.5m. The position has yielded a 51% IRR for the small investment company. The motive for the exit was: “Because the founders have left their operational positions at the company.”

Hexatronics US fiber production

Fiber communications company Hexatronic(HTRO) has decided to start manufacturing its fiber optic cables in the U.S. The new production lines are expected to be operational in the second quarter of this year.

HTRO has fallen out of favor with the market and is trading quite close to its 52-week low and 55% below its high during the same timeframe. During 2024, the company saw sales growth turn negative and margin declines. The analyst consensus estimates seem to believe in a turnaround during 2025.

Qliro is on the move in Finalnd

Qliro (QLIRO) has appointed Ted Kyander as the Country Manager for Finland. In his new role, he will lead the company’s expansion into the Finnish market. Kyander brings extensive experience in e-commerce payment solutions and most recently served as Senior Commercial Manager at Klarna. He assumed his new position in January 2025. Finland is a part of Qliros expansion plans; the full Finnish organization is expected to be in place by Q2 2025.

Stocks on The Move

Acroud declined 77%

In a move to try and improve their debt situation Acroud (ACROUD) is offering a voluntary debt-to-equity swap offer to the bondholders. Basically, it is diluting the equity owners massively.

cBrain, down 30%

cBrain (CBRAIN) saw sharp declines following its Q4’24 report. Growth rates have been decreasing during the years, and the company guides a 10-15% growth in 2025. With an EV/S of around 10.0 (LTM), the market was looking for more.

Research, Cases & Tweets

Three Potential Takeover Candidates for 2025

An article from InvesteraMera highlights three undervalued companies that could be acquisition targets in 2025 due to strong cash flow generation and strategic positioning.

• Nepa – A small-cap marketing analytics company undergoing a successful turnaround. With private equity firm Hanover Investors acquiring a 19.3% stake and adding M&A-experienced board members, a buyout seems increasingly likely.

• Evolution—The live casino leader has experienced a significant valuation decline despite strong cash flow. Though regulatory concerns remain, private equity firms could find it attractive due to its low valuation, high margins, and potential for leveraged buyouts.

• Sleep Cycle – A profitable sleep-tracking app with low valuation (9.9x EBIT) and strong recurring revenue. While an acquisition is possible, it is considered the least likely among the three, unless a strategic buyer sees synergies.

Dahlgren takes a position in Motion Display

Dahlgren Capital Private Equity has made a strategic investment of SEK 3 m in Motion Display (MODI), the company reported for its fourth quarter on Thursday. The stock increased 34% during the week.

Olle’s new food case

Olle Qvarnstrom, “Snåljåpen” on X, is famous for finding great value cases (well renowned in Swedish FinTwitter at least).

An article at Placera highlighted that he had taken a SEK 2m position at the small Finnish food company Fodelia (FODELIA).

The core part of the investment thesis revolves around the subsidiary Feelia, which vacuum-packs meals for large-scale food service clients like hospitals, reducing waste and improving efficiency.

He highlights Feelia’s 30% annual growth over the past decade and sees significant untapped margin expansion, which, once reflected in financials, could re-rate the stock as a high-growth case.

We think the company warrants a closer look. Given Feelia's current trajectory, the analyst expectations seem rather conservative.

Better Collective downgrade

Jefferies downgrades Better Collective (BETCO) to Hold (Buy), target price SEK 120 (275). Our view on BETCO is even more pessimistic but directionally the same.

Cheffelo had some upgrades

Following the earnings report from Cheffelo (CHEF), some banks feel the need to upgrade their view on the stock.

Bryan Garnier raises the target price to SEK 37 (formerly 30) while maintaining a Neutral rating. Pareto Securities increases the target price to SEK 45 (previously 34) and reiterates a Buy rating.

Insider Activity

David Johansson Increases Stake in Bimobject

On February 19, David Johansson, a board member of BIMobject (BIM), purchased 150,000 shares in the tech company at SEK 6.70 per share, for a total transaction of SEK 1.0 million. According to ownership data from Holdings, as of February 14, Johansson held 9.82 million shares, representing 6.88% of Bimobject’s total shares.

BIM continues to set new highs. It is trading close to its 52-week high and 156% above its 52-week low. The share has seen a sharp rise since the launch of the platform BIM.com on January 10 of this year.

Petri Niemi, Chair, Increases Stake in Carasent

On February 20, Petri Niemi, Chairman of the Board at Carasent, purchased 32,500 shares in the IT company, which provides electronic health record systems for the healthcare sector. The shares were acquired at €2.04 per share, totaling €66,300. According to ownership data from Holdings, Niemi held 12,264 shares in Carasent prior to this purchase.