January 22, 2016

Leoni with good value

The Obermatt Top 10 stocks for the provided indexes didn’t inspire me today. So I had a look at the Sound Incentives Top 10 list. Sound Incentives is a group of stocks where the executive incentive system makes sense. On January 15, we calculated the best stocks in the mid-sized European companies with sound incentive systems.

There are many interesting investment options on the combined strategy that I typically scan first because it finds stocks with good ratings in all categories.

I decided against Peugeot because I don’t like French cars. As a matter of fact, I dislike most combustion engine cars because they are based on a technology that is over one century old. They are loud and slow. OK, I agree that they work. But there is not much appeal besides reliability. I think the future is electric (the technology is even more proven). "Who wants to board a diesel-powered train anymore?". Nobody. They are loud and slow.

I think people will soon realize the better performance of electric cars; and they will appreciate their better style, too. That's why I opted for Leoni, a German automotive supplier that produces a lot of electrical equipment for cars. I may be wrong to assume that Leoni will profit from the electric car boom I expect to happen, but they are definitely cheap if you look at their value rating today compared to one and two years ago.

With Leoni, I am exposed to the German car industry in a way that is more or less independent of the automotive producers. I think that's good because the German car industry has good value since the VW exhaust scandal lowered the prices across the board.

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