Analysis of Celesio 2014

Celesio, A German pharmacy wholesale and logistics company

Company: Celesio

ISIN DE000CLS1001 | WKN CLS100

Business: A German wholesale and retail company that provides logistics and services to the pharmaceutical industry. Sadly enough there are very little to change for the text concerning Celesio. They themselves own 2,200 pharmacies, have an additional 4,300 as participants in brand schemes and are in total providing 65,000 pharmacies and hospitals with medication each day.

Active: They are only active in Europe and are present in 14 countries mainly northern Europe.

P/E: 34.3

How to give bonus to management and employees?

Bonus, payment, employee, manager

Lately I have been thinking a lot about bonuses. One reason for this was due to that I was standing in the crossroad having to decide to build up more cash in my own company and pay 30% taxes on the earnings or to pay out a Christmas bonus to myself and my employees. In the end I decided to pay out the Christmas bonus.

To pay out bonuses must be made more transparent than what it is today. If one employee does a good job but the rest of the company does not then sorry, no bonus for you. If you want a bonus then teach the others to do an equally good job as you did and then maybe we can start talking about a bonus payment, given that the company starts to make earnings that is. A company that does not increase the amount of coins at the bottom of the treasure chest are also not able to pay any bonus to any employee just as they should not be able to pay any dividends to the shareholders.

Asian Bamboo report Q3 2014

Asian Bamboo, Q3, 2014, front page

By the look of it, the final report for this round of quarters becomes my very own bamboo and property company. As of yet they have no property but as soon as they have sold off some more bamboo plantations and have managed to raise some more money then they will jump into the speculative property market in China. I am so thrilled about this! Nothing much happened with the share price due to the release of the report.

K+S report Q3 2014

K+S, Q3, 2014, front page

Upon the publication of the report not that much happened with the share price from what I can remember. Since then there has however been a little jump upwards. Still... what was in the report?

E.On report Q3 2014

E.On, Q3, 2014, front page

When this report arrived there were maybe 15 minutes of excitement and the share price increased a little but since then it has been down, down, down and just to make things crystal clear a fourth down is needed. Was then the response from the market justified?

Extra stock bought November 2014: Kernel

Kernel, a Ukrainian agriculture and logistics company

There is still no clear end to the trouble between Russia and Ukraine but happily at least the gas is flowing so that people will not have to freeze this winter.

The share price of Kernel is every now and then taking another nosedive and the volumes traded are low so the real price is difficult to say. As I mentioned in my Stocks of Interest: November 2014 report I found there to be two stocks of interest for me to invest in and one of those, Fugro, I have already increased in so for the extra stock I decided to buy Kernel.

This time I bought 180 shares for 1062.34 € which gave me a share price of 5.90 € including the fees. I now own 550 shares in Kernel with the average price, including fees of 8.52 € per share which means I managed to push down my price per share with almost 1.30 € per share.

Diluting my share price down as I now once again did will not make my investment become positive and one should use this kind of strategy very carefully. I have failed in the past with this strategy. As an example with Asian Bamboo and back then I bought more due to a stupid mechanical rule of buying when the share price dropped by -X%. Such rules should never be used. Please always take a look at the company.

Is the company still kind of healthy and doing well? Then additional investing is ok.
Is the company loosing money and are making idiotic changes? Then do not invest and even consider to sell directly!

To get a better feeling for what and how Kernel is doing please see analysis of Kernel 2014 and  if you want to take a look at my current Stock Portfolio then please click on that link. The portfolio will however not be fully updated until the end of the month.

Kernel operating report Q1 2015

Kernel, OR, Q1, 2015, front page

My agricultural holding Kernel arrived with their operating report for the first quarter of 2015 and in my opinion the report was ok. The market did not react towards it and in the shadow of what is going on already in Ukraine those kind of reports matters very little as they also should. It is tragic to follow everything that is happening there. What was in it?

Pershing Square: William Ackman Q3 2014

Pershing Square, William Ackman, logo, 2014

Very low activity from William Ackman and Pershing Square this quarter. He did however bring in a new company in his stock portfolio which is interesting...

The new company is:

Zoetis - discovers, develops, manufactures and commercializes a diverse portfolio of animal health medicines and vaccines designed to meet the real-world needs of veterinarians and the livestock farmers and companion animal owners they support. I took a look at them and saw a P/E of over 40 which directly made me flinch.

Conclusion: The new vet and livestock medication company looks far to expensive for me and the addition to the Canadian Pac Ry Ltd was minimal to say the least. So based on this information I will neither sell or buy something.