Me: Liquidity should be increased.
Me too: Uh uh uh, cool stock! P/E ratio below 17! CH Immo Bude! - Immediately read in and informed. Limit order placed yesterday after close of trading.
This morning: "Oh, actually I want to get in lower ..."
Forgotten... or didn't find the time...
Too late. Triggered.
And yet: I'm happy.
Plazza AG - My entry
The share that has been hit is Plazza AG ($PLAN (-1.05%) ). A real estate company focusing on the development, construction and management of residential and commercial properties. The projects are heavily concentrated in Zurich and Lausanne - two major cities in Switzerland that are known for their high demand and stable prices.
Business model & key figures
Plazza is not a traditional real estate manager, but actively builds and develops. The business model is based on project work - upgrading, developing, letting or selling properties. The company regularly generates solid profits and has a high equity ratio. Earnings per share have recently increased significantly and cash flows from operating activities are solid - even if high investments (CAPEX) are currently weighing on free cash flow.
The dividend yield is currently around 2.3 %, with a distribution of CHF 9 per share. The P/E ratio is rather low by historical standards, especially considering the expected earnings growth over the next two years. Still fairly valued compared to competitors with less growth.
Investment case - why I bought
Firstly, the projects are located in attractive regions. Residential space in Zurich remains in demand - despite rising mortgage rates.
Secondly: Plazza is growing. Profit, cash flow and project volume are increasing.
Thirdly, the company remains conservatively managed without excessive debt.
And fourthly, at CHF 398, I have got myself an entry price at which the risk/reward ratio is right for me. Yes, it could have been even cheaper. But who knows. Getting in today feels right - and I'd rather be there than wait forever for the "perfect" price. A subsequent purchase at 350 or lower would be desirable.
Risks? Of course.
High investments can be a burden in the short term. The real estate market is dependent on interest rates - but this is hardly a problem in Switzerland. And as a rather small company, Plazza is not immune to project delays or political intervention. But all this is calculable - especially if you don't put all your eggs in one basket. The management will manage this in a Swiss way and with conscious risk.
For me, Plazza is not a speculative gamble, but a solid investment - not a unicorn. Development, dividend, stable environment - it fits. My entry was somewhat more spontaneous than planned, but that's the way it is with limit orders: quasi fate :-P
Similar to $RSGN I will update something about the stock on GQ, as the stock is otherwise little highlighted.
Happy investing
GG