Reports are pouring in from all directions now and the most important thing for me is that the companies I own are making money. Preferably more than last year. However, I can accept slightly weaker quarters here and there. I have bought shares that have crashed so there is certainly a reason for that, analysts are probably expecting very weak profits in the future.
I bought in cheaply, Novo Nordisk has crashed from 1000 Danish kroner to 400 dkk. That was in December 2024. It was a few weeks later that I started to increase. The share has recovered a bit and now at 442 dkk. My average price is just under 530 dkk. It will be exciting to see how the profits hold up.
The first quarter was reported and Novo Nordisk sold 19% more which is an incredible amount, the profit was 6.53 DKK per share. Incredibly strong (completely unjustified decline in the share price of -60%). Novo will earn as I have calculated, close to 25 DKK this year and maybe even more next year.
I am very satisfied with the report. A full 15% higher profit per share when analysts expected a decline in profit per share. The number of shareholders became more and more in each decline and this year over 10,000 savers added Novo Nordisk to their share portfolios. What is interesting is that there were very mixed comments about Novo on social media. Some wrote buy before the report, others wrote wait for more decline.
Reasonable valuation is closer to PE 20 and with an expected profit of 25 this year, we can easily pay 500 DKK for the share. I see a clear rise in the share price going forward. As always, concerns are usually exaggerated and it is always a good time to enter when no one dares, however, you have to buy good companies with high profits and high potential going forward. If Novo had completely collapsed, the entire Danish stock exchange would have halved. Unlikely. Happy with the purchase and now all you have to do is sit back and watch the money grow.
Busy And Useful 