SGL Carbon - DB Data Correction and Change in Positioning
All,
Please refer to our unchanged analysis here.
Following a “data correction” by Deutsche Boerse announced on Friday, SGL Carbon will return to the SDAX, Germany’s small-company index. This follows the doubling of SGL’s market Cap late last year, in line with most vaccine trades.
Index History:
The increased visibility is of course positive news for the company that in the 90s was included in the MDAX, Germany’s MidCap index, only to fall into the SDAX in 2014 and drop out of the SDAX this time last year, when its shares had collapsed on a mix of mismanagement, horrendous losses in its upstream plant in Portugal, falling volumes in the auto division and Covid 19.
Positioning:
We are selling our 4% of NAV position in the SSNs as those are now constraint, but are retaining our smaller 2% position in the convertibles.
Wolfgang
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E: wfelix@sarria.co.uk
T: +44 203 744 7003