1Mês·

Porsche SE Subsequent purchase

I took advantage of the weakness in $PAH3 (Porsche SE) to buy another small position today.

The trigger for today's price weakness at Porsche and $VOW (+1,67%) is the profit warning from last Friday. Due to the change in strategy (more combustion engines and fewer EVs), Porsche had to make a non-cash write-down on goodwill.

I still consider VW / Porsche to be significantly undervalued. As we all know, the dead live longer 😉

At the same time, however, I believe I am already significantly overinvested in the sector, so I am merely using the weakness as a trading opportunity and would also sell today's 10%+ position.

What do you think of the German automotive industry?$PAH3 (-0,46%)

4 Comentários

HuansonCapital@Amdagli

1Mês

in recent years the share has performed poorly, say the analysts,
in addition, there were rumors that porsche was to be removed from the dax,,, did you hear it too?

i personally still think this share has potential, i also thought the 23 special dividend was mega from vw

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Part_Time_Joe@Part_Time_Joe

1Mês

@Amdagli That is indeed true! I think that the dry spell will continue.

However, I also believe that the current risk/reward ratio is quite favorable. VW and Porsche have recognized the signs of the times.

Over the last 5 years, driven by politics, they have steered the ship in the wrong direction. This is now being corrected, but it will take time. What you have messed up for 5 years, you don't make up for overnight.

But the companies are still operationally profitable. Initial successes can already be seen (e.g. sales figures for VW e-cars or the new e-car from the AUDI sub-brand in China - 10,000 pre-orders in 1.5 hours).

I am prepared to sit it out and believe that VW and Porsche will get back on track.

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The W.@thewolfofallstreetz

1Mês

What is the catalyst or bull case here?

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Part_Time_Joe@Part_Time_Joe

1Mês

@thewolfofallstreetz I see little movement here in the short term. Sentiment for (German) automotive stocks is extremely modest. But in my opinion, that is precisely the opportunity. Take VW as an example. The book value is around 300 euros per share. At the same time, VW is still profitable, unlike many other car manufacturers.

All the measures that are being taken now will have a positive impact in the coming financial years. Structurally, VW (as well as Porsche) is in a position to turn the situation around on its own. As sentiment is so negative, just a little good news will be enough to carry the share price back towards EUR 150 or more.

At least that is my investment case. You don't get rich here overnight, but I'm still positive that it will pay off in the medium term. I see a higher probability that the share will be at EUR 200 in two years' time instead of EUR 50.

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