The discovery: A walk in Valby

After plunging into the $MINEST (+3,06 %) into the stormy depths of the North Atlantic, we were in desperate need of solid ground under our feet again.

So what could be more natural than to take a look around right here in Denmark?

Yesterday, we took advantage of the beautiful spring weather to take a stroll through Valby in Copenhagen. And when you pass the massive brick buildings of the headquarters of H. Lundbeck A/S (ISIN: DK0061804770) $HLUN B (-2,01 %) you notice it:

Why look far afield for speculative returns when a global pharmaceutical specialist is printing money right on your doorstep?

This is exactly the opposite of the pure biotech gambling houses with no clear path to profitability that otherwise fall mercilessly through the cracks here. Lundbeck is a long-established Danish pharmaceutical substance.

Here is the formal disclaimer: II am not currently invested in H. Lundbeck. We are taking a purely analytical, neutral and ice-cold look at it today.

1. the business model: What does Lundbeck do?

Lundbeck does not make aspirin or plasters. They are a highly specialized global player in the field of diseases of the central nervous system (CNS). We are talking about drugs for depression, schizophrenia, Alzheimer's and migraine. Their blockbusters are called Rexulti, Trintellix and their latest growth engine Vyepti (an intravenous migraine treatment that is currently rolling out on the market).

2. market position & moat

The CNS field is the nemesis of the pharmaceutical industry. Brain research is incredibly complex and the failure rates in clinical trials are nowhere as high as here. This is their moat! Large pharmaceutical companies have often withdrawn from this field because it is too expensive and risky. Lundbeck has over 70 years of experience in this niche and dominates it profitably.

3. key figures (as of April 2026)

Current share price ~EUR 5.70

Market capitalization ~EUR 5.6 bn

Price/earnings ratio (P/E ratio)

~12.5 (extremely favorable!)

Price/cash flow ratio (KCV)

~8,5

Dividend yield

~3,6 %

4. core quality formula (the quality check)

Score = sales growth + operating margin

• Sales growth: ~ +7.5 % (driven by Vyepti and Rexulti).
• Operating margin (EBIT): A whopping 25.0 %.
• Result: 7.5 + 25.0 = 32.5

• Verdict: With 32.5 points, Lundbeck smashes our 25-point hurdle. This is first-class, qualitative growth and proves that the margins in the specialty pharma sector are gigantic.

5th Cashflow Quality Formula (The Cash Machine)

FCF = operating cash flow - CapEx

• Free cash flow: Lundbeck $HLUN B (-2,01 %) converts almost the entire profit into hard cash, as the factories are standing and CapEx is moderate (compared to heavy industry or network operators).
• FCF Yield: Is currently at a fantastic ~8,2 %.
• Verdict: Over 8 % means "very attractive". Lundbeck is an absolute cash machine and has zero problems with "balance sheet cosmetics".

6th Dividend Filter (Income-Core)

• Yield:
• 
  ~3,6 % (Check! Is above our 3.5% minimum requirement).
• Sustainability: The payout ratio is historically at a relaxed 30% to 40%. The cash flow covers the dividend twice and three times over. No pseudo-dividend on credit.

7. future prospects & strategy

The elephant in the room for pharma is always the "patent cliff effect" (loss of exclusivity). Trintellix will lose its patent protection at the end of the 2020s. That is why Lundbeck is now focusing massively on scaling up Vyepti and strategic acquisitions in the field of neuropeptides in order to fill the pipeline for 2030+.

8. competition & substitutability

There is competition from giants such as AbbVie or Biogen, but Lundbeck is more agile as a "pure play". At best, you can replace Lundbeck in your portfolio with a broad pharma ETF, but then you lose the concentrated CNS focus margin and the favorable valuation.

9. chart analysis (the current situation)

The share has had a tough time, because the market often drops pharmaceutical stocks like hot potatoes with impending patent expiries. The chart has been around EUR 4.70 has formed a massive concrete floor and is now moving back towards EUR 6.00 again. The downward trend has been broken.

10 Bargain Hunter's List (entry zones)

• Strong buy (bunker price): < EUR 5.10
• Fair entry: EUR 5.35 - 5.75 (current level)
• Expensive: > 7.40 EUR (This is where the market is then pricing in a flawless pipeline).

11. what does the CEO say? (The latest news)

CEO Charl van Zyl is firmly at the helm. His key message in recent calls: focus on profitability and "targeted business development deals". Instead of burning billions on risky giant takeovers, he buys clever small biotech assets to strengthen the company's own pipeline. He delivers exactly what value investors want to hear: Cash flow discipline.

12. analyst consensus: how do the pros see the stock?

The market hates uncertainty, and pharma is uncertainty. That is why the average analyst price target is "only" approx. EUR 6.45 (i.e. a moderate upside). Opinions differ: the value houses love the cash flow and the low P/E ratio of 12. The growth fanatics grumble about the patent expiries from 2028. A classic "hold / cautious buy" rating on the market.

My conclusion & future viability

Lundbeck $HLUN B (+1,48 %) is not a tenbagger, and that's not what we want here. If you look around Denmark, everyone is blindly pouncing on Novo Nordisk at a P/E of 40, but for the smart AOK investor, Lundbeck offers an absurd amount of safety at a P/E of 12.5, a margin of 25% and over 8% FCF yield. This is a massive quality compounder for the corner of the portfolio where the lights go out and the money works quietly and secretly.

Here is a report from Yahoo Finance

$MINEST (+3,06 %)

Sweden, Gothenburg:

Minesto's Dragon 4 (100 kW) microgrid-scale tidal power plant has been installed and is now feeding electricity into the Faroese power grid. This is an important step in preparation for the larger microgrid project, which was partly financed by the Swedish Energy Agency and developed in close cooperation with local partners, including the Faroese energy supplier Sev.

At the same time, Minesto's larger Dragon 12 power plant (1.2 MW) was successfully recovered after ten months in Vestmannasund. The megawatt plant is now on land for inspection and maintenance. Initial assessments indicate that the system has performed as expected and is showing normal signs of wear after the challenging marine conditions and exceeding the scheduled maintenance intervals.

The operation of Dragon 4 provides valuable data for the planning and construction of the upcoming microgrid project and helps to optimize performance and integration. The goal of the project is to demonstrate how tidal energy can reliably power remote areas on a microgrid scale.

Activities will continue throughout the spring and summer with a focus on implementing the microgrid project and organizing study visits for international business partners interested in Minesto's tidal energy solutions.

This progress underscores Minesto's continued efforts to advance tidal energy technology and contribute to sustainable, ocean-based power generation in the Faroe Islands and beyond.

Source: Yahoo Finance

Good evening, my dears! Fasten your seatbelts, today's story starts with a lot of turbulence.

Actually, after our successful trip to Italy - where we put the perfect, sunny and stable dividend anchor in our portfolio with Snam - we just wanted to fly back home to Denmark and relax.

But the weather gods had other plans. A massive bad weather front over the North Sea forced us to make an unplanned detour deep into the North Atlantic.

We had to make a stopover on the rough, storm-tossed Faroe Islands.

And while we were stuck there, staring out at the choppy sea, we stumbled across a local story that sounds so unbelievably like science fiction that we had to share it with you straight away.

Today, we're throwing our ironclad AOK rationality, all dividend filters and every cash flow rule overboard. It's all about pure innovation. Forget wind turbines. Forget solar. We are now fly kites under water.

Minesto AB $MINEST (+3,06 %)

1. the business model: What does Minesto do?

Minesto (spin-off from Saab) builds so-called "deep green" technology. Imagine a high-tech kite (like kitesurfing) with a turbine. This kite is anchored to the seabed and "flies" underwater in a figure-eight loop through the current. As a result, the water speed at the turbine is extremely accelerated. The result: electricity generation even with very slow ocean currents.

2. market position & the "cool story"

The story is pure science fiction becoming reality. Minesto has a monopoly on this "low-flow" tidal technology. The absolute game changer: unlike wind and sun, with tides you know exactly how much electricity is flowing and when. On the Faroe Islands, they have just connected the "Dragon 12" (a 1.2 megawatt colossus) to the public power grid.

3. key figures (as of March 24, 2026)

The company is based in Sweden and trades in Stockholm.

• Current share price:
  ~ SEK 3.20 (Penny stock alert!)
• ISIN:
  SE0000808209 (Ticker: MINEST.ST)
• Market capitalization: ~ SEK 650m (approx. EUR 57m - a real micro-cap)
• P/E RATIO:
  Negative
• Dividend yield:
  0,0 % ### 4th Core Quality Formula (the total crash)
• Sales growth: Minimal (They are currently living off EU funding, grants and the first tiny electricity feed-ins).
• Operating margin: Deep red (somewhere around -300%).
• Result: Fails my quality formula so badly! This is venture capital on the stock market.

4. cash flow quality formula

• Free cash flow: A massive vacuum cleaner. The development and installation of underwater kites devours millions. They finance themselves through regular capital increases (dilution!).

5th Dividend Filter (Income-Core)

• Judgment: 0,0 %. Anyone asking about dividends here will be thrown directly overboard.

6. future prospects & strategy

The plan for 2026/2027: The Faroe Islands want to switch completely to 100% green energy by 2030. Minesto $MINEST (+3,06 %) is currently building a complete tidal power plant array (Hestfjord project) with the local utility (SEV). If they can prove that they can operate an array of several kites profitably, this will be the proof of concept for the global rollout (Taiwan, UK, New Zealand are already on the mat).

7. competition & substitutability

There are other tidal power plants (like Atlantis Resources), but they need massive currents (like in Scotland) and build huge stationary turbines. Minesto is the only company in the world that can utilize slow currents through the "flying motion". The patent portfolio is bulletproof.

8. chart analysis (pure volatility)

The chart resembles an ECG during a heart attack. From highs of around SEK 25 in the hype years (2020/21), the thing has slipped to around SEK 3.20 due to the harsh reality of raising capital. We are currently in a deep bottoming phase. Every successful grid connection of a new kite causes short-term spikes of 20 to 30 %.

9th Bargain Hunter's List (casino zones)

• Lotto ticket entry: < SEK 3.00
• Fair gambler entry: 3.20 - 3.50 SEC
• Hype target (for worldwide rollout): > 10.00 SEK

10. what does the CEO say?

CEO Martin Edlund is extremely focused. His latest big news: the "Dragon 12" (with a wingspan of 14 meters and weighing 28 tons) is successfully feeding electricity into the Faroe Islands' grid. His clear message for 2026: Away from pure test operation, towards the scaling of real commercial arrays.

11th analyst consensus

There are hardly any analysts who go out on a limb here, apart from a few Scandinavian specialist firms (such as Pareto Securities). The opinion is clear: high-risk bet. Either the company runs out of money in the next few years, or they revolutionize the global base load energy supply and grow tenfold.

MY CONCLUSION

My conclusion: A vision that could change the world

Minesto is the craziest and at the same time most fascinating bet in the Nordic region. Yes, we know it ourselves: This stock breaks every single one of our AOK rules. No dividend, massive cash burn and a micro-cap risk that makes you sweat.

But imagine for a second what would happen if this concept scaled globally. How awesome would that be? A whole world that no longer has to hope for the wind to blow or the sun to shine. Instead, we tap into the infinite power of the tides, which can be calculated down to the minute. Invisible beneath the surface of the sea, without spoiling the landscape.

The Faroe Islands are leading the way and want to switch completely to 100% green energy by 2030 - powered by 28-tonne high-tech kites that sail in the dark, ice-cold water. This is a technological revolution right on our Danish doorstep.

We have now landed safely back in Denmark, but this stormy detour was definitely worth it. Minesto is not a basic investment, but a lottery ticket for the future of our energy supply.

Gladly opinions dear community :)

@Tenbagger2024
@Multibagger
@schlimmschlimm
@Get_Rich_or_Die_Tryin
@Klein-Anleger
@TradingHase
@Simpson
@NichtRelevant
@Abyss
@SAUgut777 and everyone else :)

Tides are greatly underestimated