This is what the portfolio manager and chief analyst would now pay attention to when buying shares – “I would watch out for that”

In the Markkinaraati program, we consider, among other things, what kind of buying targets could be found among the stocks that rose and fell the most this year on the Helsinki Stock Exchange.

The construction and real estate sectors have been disciplined by higher interest rates, and there are no signs of a pick-up in construction yet. If, however, you are thinking of buying the shares of the companies in that sector, you should carefully examine the balance sheet in particular.

“If you invest in the sector at the moment, I would personally think about companies with a strong balance sheet. If there is even a slightly weaker period here, so that the speculation of a weakening of the balance sheet and share issues does not immediately start around the company”, Actian portfolio manager Paavo Ahonen says in the Markkinaraati program.

Ahonen states that on the real estate side, for example, an apartment investment company Kojamo has so far come through the difficult market quite well.

“The financing is fine. Of course, if you still want to think about bad scenarios in the sector, if there were big downward changes in real estate values, it would hit the balance sheets of those types of companies,” Ahonen continues.

“I would dare to consider a portfolio”

In the Markkinaraati program, we think more broadly about what kind of buying targets could be found among the stocks that rose and fell the most this year on the Helsinki Stock Exchange.

Regardless of the industry, Ahonen would generally be wary of companies with weak balance sheets at the moment.

“I would watch out for them,” says Ahonen.

Inderes chief analyst Petri Gostowski agrees with the balance sheet theme. He sees companies that fit the theme from both the strongest risers and fallers. Among the calculators, there is one that specializes in composite products Exel Compositeswhich Gostowski believes has historically shown business to be of high quality, but then there have also been more difficult periods and incorrect investments.

“It has been said there that capital has to be collected, which means the balance sheet is weak. Of course, there is a possible decrease in value ahead,” says Gostowski.

However, he considers the basic fundamentals of the company’s business to be in order, which is why he would monitor the company.

Among the calculators, there is also an implementer of emission-free energy solutions Enersense.

“Funding has been tight there, and it may be that we have to repair the balance to some extent with financing as well,” says Gostowski.

On the other hand, Gostowski points out that the fuel company, which is going through a more difficult phase and issued a negative profit warning at the beginning of the week Liquid the balance sheet is in good shape.

“Through that, I would dare to consider it in the portfolio. However, you always have to remember that time diversification pays off in purchases,” says Gostowski.

Look all Markkinaraati episodes here.