Lind Research #2

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”.

News Highlights

Is Embracers’ Killing Floor 3 getting delayed?

Killing Floor 3 is expected to be launched on March 25th. Together with KC:D2, it is one of the big titles for the current quarter of Embracer Group (EMBRACB).

The game held a closed beta to test cross play on the 24th of February. Most of the tested people expressed excitement and enjoyed the beta. However, when looking at the comments on X, it seems that some players experienced technical bugs and issues, especially on consoles.

Tripwire, the game's developer and publisher, canceled a planned live stream on February 27th. Now, the X community seems to expect the game to be delayed. See the link here (which is not an official account).

We have no more intel on the plans, but it seems at least plausible that the game will be released later, which obviously will affect the next quarter revenue and profits for EMBRACB. But at least in our view, not the long-term value. We find releasing a game when it’s ready is much better than matching quarterly financials.

CVC Synsam’s lock-up

DI reported in an article that Synsam’s (SYNSAM) majority shareholder CVC’s lock-up for selling more shares will end on the 4th of March. They have sold shares multiple times, which usually puts some pressure on the stock. That might create an interesting opportunity for the more long-term minded investor.

Evolution's Competitor Throws in the Towel & More

Light & Wonder, an American competitor to Evolution (EVO), has decided to close down or sell its live casino operations. Now, only Playtech remains a significant competitor to EVO in America. In other interesting news for EVO, it seems that the group's identity that created the negative report on EVO in 2021 (when its decline started) will soon be disclosed due to a court ruling in New Jersey. 

Millennium Killed, Positive for Swedish Healthtech Software

Västra Götaland Region (VGR) has paused the implementation of the Millennium EHR system indefinitely after an agreement with Oracle. The pause aims to reassess the project and cut consultancy costs while maintaining key expertise. There is no set timeline for resumption, but a four-month notice is required to restart.

The pause opens opportunities for alternative healthcare software providers like Carasent (CARA). With VGR reconsidering its EHR strategy, cost-effective and user-friendly solutions could gain traction, benefiting companies offering scalable and efficient systems.

Stocks on The Move

Beyond Frames and Gorn 2

Beyond Frames (BEYOND) saw its shares rise 20% in Friday trading. Thanks to the announcement of the coming release of Gorn 2 later this year. The first game, released in 2019 in the now series, had an initial slow start on Steam, but later picked up when it was ported to PSVR and Oculus Quest in 2021. The game has sold a total of 1.5 million copies, making it one of the bigger VR games to date. Gross revenue for the title over the lifetime has likely been €16-18m. One should consider that the VR install base is much smaller than PC/Console, but at the same time it is much more mature now compared to when Gorn was ported in 2021. BEYOND had a total revenue of about €18m during 2024.

Freja eID Deal With Samsung

Freja eIS (FREJA) saw its share rise sharply after announcing a partnership with Samsung Electronics Nordic to integrate Freja’s digital ID card technology into Samsung Wallet. Initially focused on Sweden, the collaboration will also explore applications within the EU.

Sivers Semiconductors Continues its Rise

Sivers Semiconductors (SIVE) continues its climb after its Q4 report was released. The stock of SIVE increased close to 70% over the past month. Driven, but what seems to be, expectations that the AI boom will fuel its growth as their new solution reduced energy need substantially, which should be very interesting for hyperscalers.

This could be either:

• A warranted increase if the commercial breakthrough is near and it will fuel the growth.

• Or, just air and a too fast climb as the market takes out too much in advance due to the “AI hype train”.

We do not know, but interesting movements.

Research, Cases & Tweets

Björn Borg Going After Sportsware

Over at InvesteraMera, a case on Björn Borg (BORG) was published.

The company, traditionally known for its underwear, is making strong strides toward becoming a recognized sportswear brand. Sales of sports apparel grew 45% in Q4 2024 and over 30% for the full year, marking nine consecutive quarters of double-digit growth. Despite this, the stock remains underappreciated by the market.

The company recently took over its shoe business, which has impacted margins but is expected to drive long-term growth. E-commerce is expanding rapidly, with an 18% revenue increase in 2024 and strong profitability compared to physical stores.

Strong finances, a high dividend yield (~5%), and solid growth in sportswear and e-commerce suggest limited downside risk. With a P/E of 20, the stock may rise 25-40% if growth continues as expected over the next few years.

Insider Activity

Majority Owner Loading up in Gentoo

Mateusz Juroszek and his family remain buyers of Gentoo (G2M) stock. They now own 26.5% of the company, and Mateusz holds a board seat. During the past month, they bought shares worth about SEK 18m. The shares are trading close to their lowest point for the freshly spun-off company.

Invisios CEO Reducing his Stake

The CEO of Invisio (IVSO) sold shares for SEK 15m, which was about 11% of his holdings. The share has had a strong run in the past year, gaining from an expectation of increased military budget. Seeing a rather significant sell by the CEO when a share is trading very close to new heights is always a bit worrisome.