Nice write-up on Part 1 and 2. Any thoughts on the class action lawsuits and their effects on the price performance. I know there are plenty of other factors which you covered.
I own shares and believe there is great margin of safety in these price levels despite the latest news on the CFO and also the Swedish FSA.
I will be covering the lawsuit in part 3, However, I don’t expect it to come to much, Evolution clearly discloses in the annual and quarterly reports that 60% of revenue comes from unregulated markets.
Furthermore, the biggest headwinds the company has faced have actually been in regulated markets (Germany & UK).
It seems investors have become very risk aware about something that is completely normal in the industry.
The latest news is potentially worrisome, but with the CFO leaving, the downside scenario is a fine in my opinion.
Thanks for the response. I agree about the likely immateriality of the lawsuits.
The CFO issue is concerning. I presume it's contained mostly to the CFO but you'd think the CEO would have known and at least implicitly approved of the delayed release?
Either way I look forward to part 3! Keep up the good work!
I agree! I wouldn't be surprised if the CFO's departure were linked to this. In a news article regarding the departure, Martin Carlesund claimed they had been searching for a while. The news regarding the UK investigation came out exactly 1 month ago.
While it may be a coincidence, the company may have also been aware of this immediately, initiating the search for a new CFO.
Part 3 should be published in the coming days. I have put considerable effort into it, and I hope you enjoy it!
Nice write-up on Part 1 and 2. Any thoughts on the class action lawsuits and their effects on the price performance. I know there are plenty of other factors which you covered.
I own shares and believe there is great margin of safety in these price levels despite the latest news on the CFO and also the Swedish FSA.
Thank you, I appreciate the kind words!
I will be covering the lawsuit in part 3, However, I don’t expect it to come to much, Evolution clearly discloses in the annual and quarterly reports that 60% of revenue comes from unregulated markets.
Furthermore, the biggest headwinds the company has faced have actually been in regulated markets (Germany & UK).
It seems investors have become very risk aware about something that is completely normal in the industry.
The latest news is potentially worrisome, but with the CFO leaving, the downside scenario is a fine in my opinion.
Thanks for the response. I agree about the likely immateriality of the lawsuits.
The CFO issue is concerning. I presume it's contained mostly to the CFO but you'd think the CEO would have known and at least implicitly approved of the delayed release?
Either way I look forward to part 3! Keep up the good work!
I agree! I wouldn't be surprised if the CFO's departure were linked to this. In a news article regarding the departure, Martin Carlesund claimed they had been searching for a while. The news regarding the UK investigation came out exactly 1 month ago.
While it may be a coincidence, the company may have also been aware of this immediately, initiating the search for a new CFO.
Part 3 should be published in the coming days. I have put considerable effort into it, and I hope you enjoy it!