2Mon·

$MMK (-1.07%) Mayr-Melnhof Karton AG - a turnaround candidate for 2025🧐

The divisions are divided into 3 areas:

Board & Paper
Food & Premium Packaging
Pharma and Healthcare Packaging

Due to weakening demand and oversupply on the market, the $MMK (-1.07%) was recently hit hard, which is also reflected in the chart.

We saw the current price level around 10 years ago. In 2013 and 2014 it was already support, and before that in 2011 and 2007 it was resistance. Has the bottom been reached or will the slide continue?

The Q3 figures will be published shortly on 7 Nov ☝🏻

And what about the outlook?

Demand on the market is still subdued and the oversupply has not yet been reduced. What seems interesting is the good long-term customer base. Ultimately, the prospects of $MMK (-1.07%) can also be derived from the prospects of its key accounts.

In addition to the solid customer base, the ongoing Cash & Profit Protection Program also appears to be bearing fruit. Cash flow has already improved significantly and should also have an impact on earnings in 2025.

My conclusion:

$MMK (-1.07%) The company has been added to my watchlist. I can well imagine entering the stock soon with an initial small position and then seeing whether the market believes in a turnaround in the same way. If it turns upwards again, the position can be expanded with further tranches.

Do you know Mayr-Melnhof Karton? Do you already have it in your portfolio?

@7Trader
@BamBamInvest
@Smudeo
@Goldmarie
@Petzi-Port

You can find more information here https://mm.group/wp-content/uploads/MM-Group-investor-presentation-Oct-2024-1.pdf

19 Comments

BamBamInvest@BamBamInvest

2Mon

Know as Ösi yes, but not my prey ☺️.

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TomTurboInvest@TomTurboInvest

2Mon

@BamBamInvest Until today, MMK was not my prey either, but since I add 2-3 potential turnaround candidates every year, I am currently exploring 😅

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BamBamInvest@BamBamInvest

2Mon

@TomTurboInvest I want to keep my portfolio rather small and I am currently going for turnaround candidates in the growth area. Or companies that I wanted to have and have had a setback. This has worked well in recent months. And my biggest position will report figures on Tuesday, when it will go down or up sharply again 😂

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Seventrader@7Trader

2Mon

@BamBamInvest upwards please. I need a sustained upward breakthrough at SOFI 😅

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Seventrader@7Trader

2Mon

@TomTurboInvest this week I bought Schaeffler back into my portfolio because I am betting on a turnaround.

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TomTurboInvest@TomTurboInvest

2Mon

@7Trader I'll have to take a look right away

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TomTurboInvest@TomTurboInvest

2Mon

@BamBamInvest SOFI el Hoffnung😅 I wish you the best for the numbers 👍

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BamBamInvest@BamBamInvest

2Mon

@7Trader Yes, I need that too, then it will really take off for me. 😁 Some positive unexpected news on which the short positions have to cover would be nice ✌️😉

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Charmin@Charmin

2Mon

Interesting tip. I like companies like that. But I would have to do more research on competitors etc. before investing. I'll add it to my watchlist.

UPDATE: After a mini-research, the share still appears expensive with a P/E ratio >25. Comparable stocks have significantly lower P/E ratios ...

Of course, this is only a 30-second assessment, but I wouldn't go in just yet because it's overvalued.

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Charmin@Charmin

2Mon

@Charmin Update: Research completed, removed from watchlist again. Much too expensive. When they are back at 40 euros, maybe we can talk ...

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TomTurboInvest@TomTurboInvest

2Mon

@Charmin That's the question I'm also asking myself today: will the old strong marks hold in the current price range, or will the slide continue down to €40. Let's see what the figures report. The P/E ratio can change quickly if profits pick up. The cash & profit protection program can turn that around quickly... We'll know next year 😅

Average analyst estimates are €147, but we know how it is with analysts anyway 🙄

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Seventrader@7Trader

2Mon

Yes, of course I know them. The family are extremely rich and own an incredible number of forests and woodlands in Austria and Europe.
Two years ago, I had the business pleasure of being in direct contact with them.

The share price was extremely boosted by Corona. They were winners, as were Swiss Post and Co.
It is not surprising that the price has fallen back to normal levels or even below.

As long as the price hasn't found a bottom and the 200 mark on the monthly chart is so far away, I wouldn't get in.

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TomTurboInvest@TomTurboInvest

2Mon

@7Trader well, at around €104, the 200 mark is a long way off... let's see if the price continues to run away from it, or if it heads towards the 200 mark again🫣

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Seventrader@7Trader

2Mon

@TomTurboInvest that's still a long way to go....
By the way, I'm currently targeting Fluence Energy $FLNC and am considering opening a position there. Maybe you'd like to take a look at the stock.

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TomTurboInvest@TomTurboInvest

2Mon

@7Trader I'll have to take a look at it one of these days

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Dividendenopi👴@Dividendenopi

2Mon

Thanks for the introduction, never heard of it before. Interesting customer base. After the figures, let's see how things continue and whether they get back to their old dividend level 😇

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TomTurboInvest@TomTurboInvest

2Mon

@Dividendenopi MMK is usually only known to Austrians and has a long tradition dating back to the 19th century, when the family made its fortune in the steel industry. Today, MMK has the largest private forest estate in Austria, among other things 🌳🌳🌳

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Smudo@Smudeo

2Mon

Thanks for sharing. The share price has been very negative since the dividend reduction in 2023.
In the past, the dividend was also higher or reduced by more than 50%.
Company tells me something but currently not in my valuation/watchlist.
Thanks and have a nice weekend

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PietAT@Petzi-Port

2Mon

I don't know it as an Austrian, I'll have a look when I have money again :)

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