Two problems - management sales of shares in large numbers, even just before securing the all-important Cessna contract, and a pending decision by the prosecutor's office on various events two years ago. Throw in a credit cycle squeeze, and city-type boys may buy fewer toys, hence we exited.
A stake was bought in Thielert AG, which is the world's sole accredited manufacturer of aircraft piston engines that can run on diesel or kerosene, or a mixture thereof. Conventional piston engines run on AVGAS, which is facing environmental headwinds as it is leaded fuel. AVGAS availability is limted in many developing parts of the world, and in the West opposition to it is growing. Cessna and other leading aircraft manufacturers have just signed agreements allowing Thielert engines to be installed on new aircrafty, rather than as retor-fit kits. Thielert also supplies parts to manufacturers of Unmanned Aerial Vehicles (UAVs) for the US Department of Defence. Concerns over the company's high levels of working capital (brought on by contracts with long lead-times growing faster than revenue received) created an ideal buying opportunity in a company that is likely to dominate a fast-growing global market.
| Sedol |
Type |
Price |
Date |
| B0P7D39 |
Sell |
EUR 19.155 |
09/08/2007 |
| B0P7D39 |
Buy |
EUR 20.80 |
16/11/2006 |
| B0P7D39 |
Buy |
EUR 18.013 |
09/11/2006 |
|
