Yesterday evening I increased my investment in $RSGN again, or rather doubled it (~47% remaining profit on total position, i.e. 50% margin of safety).

As the only one keeping an eye on the stock, I am happy to inform you about my reasons:

Block Trades:

ABB's bookmakers placed a large number of shares at just under 20 in May and 1m shares at just under CHF 28 in July. These are probably (no public information available) placements by SPAC sponsors or early shareholders. This increases the free float and makes the company more attractive, as the co-determination rights are distributed. In addition, the CHF 28 mark should now prove to be a significant support.

New investors:

Existing and new investors in RSGN are regularly topping up:

Ameriprise is just the latest example of a relevant player. BUT: Some of these are also corresponding fund investments.

Article in FuW:

The financial magazine "Finanz und Wirtschaft" regularly (weekly?) presents its top picks. The track record of previous picks is impressive - for example $CRWV (-3,37 %) was discovered early on and advised to invest. The attention will certainly help the "small player" to end up on watch lists or attract investments directly. The media attention also helps with private placements.

Negative - or risk:

The stock is currently heading for the top, but I had no patience for a limit order. The support at 29.- does not leave much room for maneuver.

Gameplan:

A sell order is set at CHF 45, over 180 shares. We will see if we see the run. I am convinced of the company in the long term. I may adjust both the number of shares and the trigger price.

The fact is that European equities are still undervalued compared to US equities. The drive towards small and mid-caps is also in tact. Fund inflows and direct investments should continue to help RSGN.

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 (+0,23 %) ). 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

$RSGN

R&S shares are among the shares that have risen the most on the Swiss stock exchange in 2025. Since the beginning of the year, the stock has gained almost 60 percent. (as at July 9). Some traders believe that this is by no means the end of the story. Rather, investors should not attach too much importance to today's share price weakness. The share is currently "only" suffering from the fact that a major shareholder, Artemis Holding, has reduced its position. This is because the pre-market reported transaction of one million shares is likely to be profit-taking. According to traders, Artemis placed one million shares on the market via UBS in a block transaction. This corresponds to around 2.7 percent of the total capital. Artemis previously held around 9.5 percent of R&S. The sale increases the free float of the share. This should make it more attractive for institutional investors, as it increases tradability, says a trader. The pressure on the share price should therefore soon be over and the way clear for further price increases, says one trader.

• awp, 10.07.2025

I'm not stocking up. Posi is already big enough and working on rebuilding the Liq. 😊

My top posts (objective or subjective? 🤣) are collected here.

Pin the post in my profile. Takes a bit of time and will be added to.

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A start:

BUDGET AND FINANCE - BASIC KNOWLEDGE:

Liquidity planning

https://getqu.in/jfZKdu/

OPTIONS:

Short put - An initial explanation and strategy

https://getqu.in/19zwbn/

Long Call - NVDA-Calls (Buy & Update)

https://getqu.in/SrbAxB/

TAXES:

CH - NOR ; Withholding tax

https://getqu.in/FOTo6W/

STOCK FAVORITES:

$RSGN

Presentation of the company: R&S Group Holding AG

https://getqu.in/0Ew148/

Energy transition in Germany - profit in Switzerland? 🇩🇪💶🇨🇭

https://getqu.in/2YyCKJ/

PERSONAL:

200k unlocked

https://getqu.in/w7Utvl/

OTHER:

Carry Trades: Definition, current turbulences and investment strategies (Best Of)

https://getqu.in/fLdAXu/

Want a watchlist for the semiconductor industry?

https://getqu.in/2YmSAt/

Insurance sector likely to grow thanks to robust global economy

https://getqu.in/oD4s02/

*There was another series on embedded finance, but this did not meet with much interest from the community. I have therefore omitted it from the summary. However, the search field should bring it up.

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Happy Investing

GG

Thanks to a target price increase, R&S (+4.1%) is continuing to soar. UBS has once again raised its target with an unchanged buy recommendation. The shares had already risen sharply in 2024, and since the beginning of April the price has risen sharply again.

$RSGN

A few years ago, SPACs were seen as the next big thing. A kind of shortcut for companies on their way to the stock exchange: faster, more flexible, less regulated than traditional IPOs. However, it is now clear that the euphoria was largely unfounded.

The results of many SPACs are sobering.

• After 1 year: -35% to -50% on average
• After 3 years: often even -70%
• And after 5 years, many disappear completely into insignificance.

There are many reasons for this: companies were often taken over that were not yet ready for the stock market. In addition, there were strong dilution effects and few incentives for quality - the main thing was that the deal went through.

And that is precisely why it is so exciting to look at $RSGN (R&S Group), one of my favorite stocks, a closer look.

The Swiss company went public in 2023 via a SPAC (VT5) - at a time when SPACs were already under pressure internationally. Nevertheless, RSGN has delivered.

• The focus on energy infrastructure fits in perfectly with the current energy transition.
• The customer list (including Siemens and ABB) is impressive.
• The figures? Profitable and growing.
• And the share price? It has remained stable since the merger and has even risen sharply - that alone is exceptional in the SPAC environment.

I looked into the UG, VT5, because I wrote my master's thesis on SPACs in Switzerland.

Of course, it remains to be seen $RSGN It remains to be seen how the business will develop in a volatile market environment. But it is clear that a SPAC does not necessarily have to end in disaster.

Perhaps RSGN is exactly the example that is needed to restore confidence in the model - at least if the foundations and strategy are right.

I would definitely like to see the next SPAC in Switzerland...

Happy investing

GG

Germany is in the middle of the energy transition. Coal and gas out, sun, wind and water in. 🌞💨🌊 That sounds like a purely German thing at first - but it's not. Because when billions are pumped into new power lines, grids and hydrogen infrastructure in Germany, the cash registers in Switzerland are also ringing. For example at the R&S Group ($RSGN ) - a transformer manufacturer based in Sissach (BL) and one of my favorites. But what's the connection?

Billions for new lines - and what does it take?

Germany needs to get its electricity grid up to scratch so that all the green electricity from wind and sun can actually get to where it is needed. 🔌 In concrete terms, this means more lines, new substations and tons of technology - including transformers.

A few figures:

• According to studies, it will take 650 billion euros by 2045 for the electricity grid alone. 🤯
• In addition, a new hydrogen core grid with over 9,000 km of lines will be built.
• Large wind farms such as "He Dreiht" (960 MW capacity) are coming on top. 🌬️

And this is where it gets exciting for the R&S Group.

Who supplies the transformers?

The R&S Group produces exactly what is needed for such a mega conversion: Transformers and switchgear in all sizes - in all sizes, from small distribution transformers to large power transformers with up to 120 MVA. ⚡ The company is not only active in Switzerland, but also delivers throughout Europe - and has over 100,000 transformers worldwide at the start. 💪

In order to position itself even better, R&S recently acquired the Irish transformer manufacturer Kyte Powertech acquired. The deal was worth approx. 264 million francs francs. As a result, R&S now has an even stronger presence in the European market - including Germany. 🏗️

Why an advantage right now?

In Germany, it's not just the politicians who are motivated, the pressure is also high: old grids won't last much longer and without a reliable infrastructure, no energy transition is possible. That's why planning and tendering are currently taking place on a grand scale - and that's exactly where specialized providers like R&S come into play.

Another plus: many transformers have to be "Made in Europe" in order to comply with EU directives or to be delivered more quickly. Despite not being a member of the EU, Swiss manufacturers are often still in demand because of their quality, reliability and proximity.

So: while Germany is building grids, building electricity storage systems and planning hydrogen pipelines, a Swiss company could make a lot of money in the process. 💼💡

What do you think? 🤔💭 Where and how else could you benefit?

Happy investing

GG

Sources:

[Bug? Can't insert links?]

The shares of transformer manufacturer R&S have not really taken off this year and have lost ground against the rising overall market. The shares were also weighed down by a large share placement by CGS at the end of January. Since the annual figures at the beginning of March, however, a trend reversal seems to have been initiated. R&S offers an ideal combination of a solid business model and strong external growth drivers, according to a study by "Neue Helvetische Bank", which has added the shares to its list of favorites. For example, the ongoing electrification in areas such as e-mobility, renewable energies and data centers is driving massive demand for high-performance transformers. In addition, the Group has made a promising addition to its product portfolio with the acquisition of Kyte. The recent weakness in the share price therefore offers an attractive entry opportunity, especially for long-term investors, the analysts conclude.

$RSGN

Sales at the industrial company R&S ($RSGN ) increased by 40% to CHF 283 million last year, partly due to acquisitions. EBIT climbed to just under CHF 63 million, more than twice as high as in the previous year. An unchanged dividend of 50 Rp. (~3% at the current share price).

The figures will be published in April. I am absolutely satisfied with the 4% dividend yield on my purchase. I am not planning to sell; at around CHF 14, I would even consider buying more.

Happy investing

GG

R&S Group expects lower debt

The transformer manufacturer has taken out a syndicated loan of CHF 160 million from ten financial institutions, led by UBS, to finance the acquisition of Kyte Powertech. The loan replaces an earlier bridging loan of CHF 233 million and will be repaid in tranches of CHF 25 million every six months from 2025. In addition, R&S has agreed a revolving credit facility of CHF 30 million for general purposes. The net gearing ratio is expected to be below 1.8 at the end of 2024, which is better than expected.

Happy Investing

GG

$RSGN

Source: FuW, 05.12.2024