Car shipping company Höegh Autoliners was a pure, wild dream for investors who got involved when the company went public nearly two years ago. Since the IPO, values have nearly quadrupled. The shipping company attracted not only small savers and money. Professional private investors also jumped on the stock.
Monaco-based Arne Friedli is among the professionals who have been on the stock exchange for some time. Partly through your own account, but mostly through so-called “unit correlation wallets”.
He believes the stock is trading at a very significant discount.
– The share is still very cheap, although it is no longer as cheap as it used to be. The market has misunderstood the drivers behind the car transportation market and compared it to the container market, Fridli tells DN.
– Very big discount
In mid-August, when shares were around record highs, Fridley issued a number of shares, Holdings’ shareholder register shows. Fridley explains that he traded some of them in and out in anticipation of new sales. Now it appears with more arrows again.
Because after Höegh shares rose further during September, and certainly achieved a new “all-time high”, Höegh Autoliners notified the market that the main owner AP Møller – Maersk had sold 16.9 million shares for more than one billion kroner.
It sold at NOK 73 per share, just below the stock’s trading price that day. However, the sell-off does not seem to have bothered the market much. The stock closed several kroner above the selling price and has continued to rise since then.
On Wednesday morning, new shareholder lists showed several investors showing up with new shares in Höegh, at the same time as a share sale to Maersk was recorded. One of them is Arne Friedli, who is now listed as the fourth largest shareholder in Höegh Autoliners with shares worth just over NOK 300 million.
Fridley is positive about the market.
One of the most important drivers is that 80-90 percent of the world’s battery production is done in China, thus producing more electric cars. Electric car exports from China have increased by about one million cars annually in recent years. If this continues, it will be enough to keep up with the growth of the entire fleet, says Fridley.
In any case, the investor believes that the market looks good for 2023, 2024, and most likely 2025.
– According to my calculations, Hauto cannot make a loss before 2028 due to the contracts being concluded now. Compared to auto carrier transaction prices in the physical market, Hauto is trading at a very significant discount, says Friedli, who adds that the stock will enter the index on Friday.
Hauto is the “stock marketer” for Höegh Autoliners.
At the time of the stock exchange’s close on Tuesday, the stock stood at NOK 82.90. On Wednesday morning, the share was down five percent.
Expect more growth
Other well-known investors with more shares also appear in recent shareholder lists.
Through his investment firm Tigerstaden, stock picker Ketil Skorstad emerges with an additional 1.1 million shares in the shipping company. He has shares worth more than NOK 100 million.
Real estate tycoon Simen Thorsen also appears with new shares, holding Höegh values of more than NOK 50 million.
Otherwise, investors such as Øyvin Brøymer and Harald Moræus-Hanssen can be found on the lists. Moræus-Hanssen has been reducing its inventory in recent weeks. According to shareholder lists, he has been selling smaller items in one form or another since last May.
The fact that Höegh Autoliners stock has seen a huge price development does not seem to make analysts fear the rises. Of the seven analysts covering the stock, all have a buy recommendation. The average price target is NOK 111, just over 30 percent above the share price today.
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