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Studsvik is a good company with a strong franchise. However, at current levels the valiations have become very stretched and with no reason to upgrade earnings projections for the next two years, it has been sold.
Studsvik. This $160m market cap 50 year old Swedish company is Europe 's only independent specialist provider of equipment and services to the nuclear power industry, with a focus on the operations, maintenance and decommissioning stage of a power station's life cycle. It has leading positions in Sweden , Germany , UK , US and Japan . It is going through a restructuring/disposals process but the main reason for buying this stock is our belief that after 20 years in the doldrums much of the developed world is now realising that, like it or not, nuclear power is going to have to play an increasingly bigger role in meeting their energy requirements. Studsvik are well positioned to assist in the upgrade of existing power stations and, where necessary, the decommissioning of those plants uneconomical to maintain. The company has net cash on its balance sheet and given it is about to see significant positive earnings momentum it is cheap on just 14x forward earnings.
| Sedol |
Type |
Price |
Date |
| 7103269 |
Sell |
SEK 255.008 |
05/06/2007 |
| 7103269 |
Buy |
SEK 262.05 |
12/04/2006 |
| 7103269 |
Buy |
SEK 271.037 |
07/04/2006 |
| 7103269 |
Buy |
SEK 169.57 |
09/09/2005 | |
