2Yr·
Opinion for $CON
🐻 Bearish

One of the big German companies that hasn't been able to get off the ground in recent years.


Over a 5-year period, the share is down almost 60%.


How do you plan to get out of this slump? With the now universally propagated panacea of splitting up.


The large Continental AG could become four independent companies:


1️⃣ Conti Tires

2️⃣ Conti Automotive

3️⃣ Conti Tech

4️⃣ Conti Autonomous Driving


So once again hidden assets are to be lifted. Once again, the story of the speedboats is propagated, which can act much faster independently and are more maneuverable.


The example of Siemens has shown that this can work. However, it is en vogue everywhere to play this management phrase. While the declared goal for many decades was to create large conglomerates, we are currently experiencing the opposite everywhere. It will be interesting to see whether things go in the other direction again in 20 years.


For me personally, such considerations as those made by Continental are no reason to invest. I would much rather see what the plans for the future of a company look like. In my opinion, very little comes from the management.

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