Due to my shopping hysteria some days ago I try to hide it by claiming that this became my October investment. I bought 850 shares of Eniro at a cost of 1035.11 € including fees. This means that I paid 1.22 € per share so I am already down some %-age points.
Why did I then make this investment?
Eniro is today traded at a silly low P/E and P/B value. Those are reasons enough for me as a contrarian investor to step in. With Eniro there comes some additional aspects though...
This old company has been around since 1880 and their business was for a long time to give out printed versions of business as well as private search information. When I was a child I often looked in that book to find a new hairdresser or opening hours of the library, swimming hall etc. It was back then very useful and it was also used frequently by people.
With internet they lost ground and they became a thing of the past and not only were they punished on the stock market but also by customers that stopped using their services. They themselves also dropped the ball on how to profit from internet.
In the last years (with our without the current issues with the accounting) they have been bringing home 0.2 € in earnings per year. To me that indicates that they have managed to transform into an internet based company and they have managed to find ways to profit over internet.
Currently they are working on bringing down their debt and once that is done they will start to pay dividends also to common shares. I hope that in two to three years from now that I will be able to collect dividends that will be sufficiently large (based on my current investment) to cover the years when I received nothing.
If you want to take a closer look at Eniro then please see
analysis of Eniro and to see
my current Stock Portfolio then click on that link but it is not yet updated.
A crazy investment? Probably it was and in a couple of years we shall find out.
