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Bonava AB B (BONAVb)

Stockholm
Currency in SEK
Disclaimer
10.15
-0.10(-0.98%)
Closed

BONAVb Comments

Hello, guys! please, share your opinion.There is a good development company Bonava (BONAV B), which builds housing in Europe, as well as in Russia (a little bit). From the news feed, I came across reports that rallies were held in Estonia and Finland, demanding that the company leave Russia, the aggressor country. Its market capitalization is SEK 3.6 billionThey say that in Russia business will stop working anyway and it will almost be nationalized. They themselves estimate that the Russian unit is worth 1.4 Bn SEK, with the cost of leaving Russia. This is almost 40% of the current market cap! At the same time, there is no information in the reports that would reflect the loss, i.e. the market has not yet reacted. Therefore, one way or another, but Bonava should become cheaper.It turns out that the company's shares will fall in price by 30-40 percent?Can you agree this?
Bonava wrote down the St. Petersburg business to zero in their 2022 financials. https://www.bonava.com/en/media/press-releases?page=/perma/press/2087320On the other side they just annoounced a potential future gain of 440 mSEK if they get authorities approval for selling to a Russian buyer. https://www.bonava.com/en/media/press-releases?page=/perma/press/2131307If this goes through, then the share price will likely react positively. Overall for the patient value investor this looks like a solid company that's trading at a currently heavily depressed price.
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