Fritz Schroeder
Old-fashioned heavy industry is still good for surprises: $TKA.DE (ThyssenKrupp AG) price jumps by over 10%. 📈 The market recognizes the decision to sell the Indian subsidiary Thyssenkrupp Electrical Steel India Private Ltd to an Indian-Japanese consortium composed of JSW Steel Limited and JFE Steel. ✔ This deal is planned to pour over 💸 €440 million into $TKA.DE's chest. A treasure $TKA.DE needs to push further the green transformation of its steel sector. But, $TKA.DE is a multi-technology industrial company and challenging to understand. 🤔 Their activity covers, among others, Automotive and marine technology Elevators and industrial components Steel production, forged products, and industrial production technology… The issue is that cyclical results from steel production 📉 have a massive impact on other, more growth-oriented business fields 📈. But even these branches are facing a low margin cycle, and management is studying options👀to bring more coherency into these various business domains. The next steps and resulting consequences are not known yet. For us, investors, this is an interesting moment for decision-making.👍 We should trust the management to maintain the most promising activities that will deliver sustainable results. Seen from this perspective, an investment in $TKA.DE does make sense, and looks more like bargain hunting than gambling. But, do not be overambitious. A stake in the steel industry should not account for more than 2—3% of your holdings.
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TKA.DE
ThyssenKrupp AG
9.084
0.214 (2.41%)
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