Industrials

• I got a bunch of questions about my Outsourcing comments yesterday in Outsourcing (2427) – Earnings Delay Causes Consternation. 
• This piece is intended to clarify what I know (still limited), put parameters around what it might be, and draw lines in the sand which I might later erase.
• This may be nothing. But it may not be. I will try to answer the questions I received in a kind of Q&A format, and I hope that helps.

• Two days ago, Japanese manufacturer of ubiquitous office furniture Itoki Corp (7972 JP) announced salutary earnings/presentation(J) results, new MTMP(E) outlines, new shareholder return policy(J), yutai program(J), div hike(J), and buyback(J). 
• It was a big day. The stock went limit up on 14 Feb and is +12% today. +25% in two days.
• No single holder holds that much BUT the parameters tell you how this gets done. It’s interesting, but it is important to read the fine print below!

• SSE 50 and SSE 180, respectively, aim to represent the performance of the 50 and 180 largest and most liquid A-share stocks listed on the Shanghai Stock Exchange.
• In this insight, we take a look at our expectations for potential index changes for SSE 50 and SSE 180 during the June 2024 index rebal event.
• Since my last insight, there have been a couple of changes to our expected ADDs basket and a couple of changes to our expected DELs basket for the SSE180 index.

• Base Carbon is a leading provider of high-quality carbon offsets that can be purchased by third parties to meet their carbon offset goals.
• Through a disciplined underwriting process, a strong balance sheet, and an experienced team, the company seeks to be the preferred carbon project partner for developers and buyers of carbon credits.
• Robust portfolio of existing projects. Base Carbon has invested in three successful projects that are either currently generating credits and cash or will soon be producing credits that can be sold. 

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.
• The company has released an executive summary outlining the key findings from the market study prepared by Fairmont Consulting Group LLC into the niobium C103 alloy and other high-value specialty alloys used in mission-critical defence and space applications.
• The executive summary together with key assumptions and financial drivers released by Amaero have formed the basis of our revised earnings estimates for Amaero’s operation. 

• Auckland Airport (AIA) will report a strong recovery in earnings, given the increase in air traffic over the past 18 months, when it reports its 1H24 result on 22 February 2024.
• However, passenger (pax) development, as outlined in its monthly operating stats, has been below the level implied by the pax guidance provided at the FY23 result.
• Consequently, FY24 NPAT guidance (NZ$260m–NZ$280m) is at risk, albeit at least partially mitigated by (1) improving retail income, and (2) AIA’s historic conservative nature when setting earnings guidance. 

• Solid earnings visibility – Q1-3 FY3/24 results were in line with recently revised company guidance, with the core earnings driver being the Profit-Generating Funeral Services segment.
• Positive trends seen in Q2 FY3/24 continued QoQ, with growth in services and high utilization rates from the newly expanded funeral halls.
• The legacy Information segment (print media) relatively underperformed, and the company is continuing cost improvement efforts.

• Our estimations for FY 2023 indicate a projected annual revenue of £959 million, with further growth expected in FY 2024, reaching approximately £988 million.
• In comparison, the company’s revenue for the fiscal year 2022 amounted to £941 million, showcasing a slight decrease from the £943 million reported in 2021.
• Notably, the operating profit surged to £4.6 million in 2022, demonstrating a substantial increase from the £2.3 million recorded in 2021. 

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA. The company has released an executive summary outlining the key findings from the market study prepared by Fairmont Consulting Group LLC into the niobium C103 alloy and other high-value specialty alloys used in mission-critical defence and space applications.
• The executive summary together with key assumptions and financial drivers released by Amaero have formed the basis of our revised earnings estimates for Amaero’s operation.
• Key assumption changes include the addition of a fourth gas atomiser, positioning for an estimated 40% of the C103 niobium powder market longer term, higher C103 prices than previously modelled, but a 50% yield on powder bed fusion powder production.

Key points

• Copa Airlines consistently pays dividends, setting it apart from other airlines.
• The airline’s competitive advantage lies in its strategic location in Panama City and its hub-and-spoke model, facilitating efficient connections between North and South America.
• Despite the challenges of the airline industry, Copa has outperformed its competitors in generating value and is projected to have significant upside potential in both the short and long term.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• I got a bunch of questions about my Outsourcing comments yesterday in Outsourcing (2427) – Earnings Delay Causes Consternation. 
• This piece is intended to clarify what I know (still limited), put parameters around what it might be, and draw lines in the sand which I might later erase.
• This may be nothing. But it may not be. I will try to answer the questions I received in a kind of Q&A format, and I hope that helps.

• Two days ago, Japanese manufacturer of ubiquitous office furniture Itoki Corp (7972 JP) announced salutary earnings/presentation(J) results, new MTMP(E) outlines, new shareholder return policy(J), yutai program(J), div hike(J), and buyback(J). 
• It was a big day. The stock went limit up on 14 Feb and is +12% today. +25% in two days.
• No single holder holds that much BUT the parameters tell you how this gets done. It’s interesting, but it is important to read the fine print below!

• SSE 50 and SSE 180, respectively, aim to represent the performance of the 50 and 180 largest and most liquid A-share stocks listed on the Shanghai Stock Exchange.
• In this insight, we take a look at our expectations for potential index changes for SSE 50 and SSE 180 during the June 2024 index rebal event.
• Since my last insight, there have been a couple of changes to our expected ADDs basket and a couple of changes to our expected DELs basket for the SSE180 index.

• Base Carbon is a leading provider of high-quality carbon offsets that can be purchased by third parties to meet their carbon offset goals.
• Through a disciplined underwriting process, a strong balance sheet, and an experienced team, the company seeks to be the preferred carbon project partner for developers and buyers of carbon credits.
• Robust portfolio of existing projects. Base Carbon has invested in three successful projects that are either currently generating credits and cash or will soon be producing credits that can be sold. 

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.
• The company has released an executive summary outlining the key findings from the market study prepared by Fairmont Consulting Group LLC into the niobium C103 alloy and other high-value specialty alloys used in mission-critical defence and space applications.
• The executive summary together with key assumptions and financial drivers released by Amaero have formed the basis of our revised earnings estimates for Amaero’s operation. 

• Auckland Airport (AIA) will report a strong recovery in earnings, given the increase in air traffic over the past 18 months, when it reports its 1H24 result on 22 February 2024.
• However, passenger (pax) development, as outlined in its monthly operating stats, has been below the level implied by the pax guidance provided at the FY23 result.
• Consequently, FY24 NPAT guidance (NZ$260m–NZ$280m) is at risk, albeit at least partially mitigated by (1) improving retail income, and (2) AIA’s historic conservative nature when setting earnings guidance. 

• Solid earnings visibility – Q1-3 FY3/24 results were in line with recently revised company guidance, with the core earnings driver being the Profit-Generating Funeral Services segment.
• Positive trends seen in Q2 FY3/24 continued QoQ, with growth in services and high utilization rates from the newly expanded funeral halls.
• The legacy Information segment (print media) relatively underperformed, and the company is continuing cost improvement efforts.

• Our estimations for FY 2023 indicate a projected annual revenue of £959 million, with further growth expected in FY 2024, reaching approximately £988 million.
• In comparison, the company’s revenue for the fiscal year 2022 amounted to £941 million, showcasing a slight decrease from the £943 million reported in 2021.
• Notably, the operating profit surged to £4.6 million in 2022, demonstrating a substantial increase from the £2.3 million recorded in 2021. 

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA. The company has released an executive summary outlining the key findings from the market study prepared by Fairmont Consulting Group LLC into the niobium C103 alloy and other high-value specialty alloys used in mission-critical defence and space applications.
• The executive summary together with key assumptions and financial drivers released by Amaero have formed the basis of our revised earnings estimates for Amaero’s operation.
• Key assumption changes include the addition of a fourth gas atomiser, positioning for an estimated 40% of the C103 niobium powder market longer term, higher C103 prices than previously modelled, but a 50% yield on powder bed fusion powder production.

Key points

• Copa Airlines consistently pays dividends, setting it apart from other airlines.
• The airline’s competitive advantage lies in its strategic location in Panama City and its hub-and-spoke model, facilitating efficient connections between North and South America.
• Despite the challenges of the airline industry, Copa has outperformed its competitors in generating value and is projected to have significant upside potential in both the short and long term.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Originally, the MBO for Outsourcing Inc (2427 JP) was expected to get launched end-January 2024. A late-ish filing with regard to the EU’s Foreign Subsidies Regulation regime prompted a delay.
• Yesterday Outsourcing announced a delay its earnings release by 3 business days, the delay “procedures related to impairment losses are continuing.”
• Outsourcing shares are down hard on this. -1.5% as I write. I examine.

• Outsourcing Inc (2427 JP) has delayed the announcement of its 4QFY2023 results from 14 to 19 February as the impairment loss accounting is yet to be completed. 
• Outsourcing has a history of impairments, resulting in missed forecasts, which suggests a weak 4Q. The concern is that a weak 4Q could force Bain to trim its JPY1,755 offer. 
• Persol Holdings (2181 JP) guidance cut today suggests a weak 4Q reflects near-term industry weakness rather than company-specific issues. The weak 4Q is a valuable cover to justify the less-than-stellar offer.

• Stylam Industries (SYIL IN) reported its best-ever EBITDA margin of 22.3% Vs 16.8% due to a raw material price decline. Revenues continued to remain soft, with growth of -8% YoY.
• The company completed its brownfield expansion to increase the plant capacity by 40% and is now embarking on a capacity expansion of 200 crores in FY25, effectively doubling its revenues. 
• Stylam Industries (SYIL IN) trades at 22x/19x FY24e/25e, with a potential for doubling of revenues over the next 3-5 years.

• Octillion Energy Holdings (OE HK) is looking to raise US$400m in its upcoming Hong Kong IPO.
• Octillion’s main revenue driver has been its EV battery systems with battery cells over the track record period, with a healthy balance sheet to support its cash burn. 
• However, its revenue growth fell off a cliff in 1H23 due to its heavy reliance on a single customer, which doesn’t appear sustainable, in our view.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We view Selecta’s ESG as “Adequate”, in line with the Environmental and Governance scores, while the Social pillar is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.
• Selecta claims to be the leader in the European vending machine market. The company operates vending and coffee machines in workplaces, public areas (e.g. hospitals, universities, train stations, airports and petrol stations) and entertainment venues.

• Large-Cap indexes (S&P 500, Nasdaq 100) remain bullish, finding support at their respective 20-day MAs since November 2023, and we remain bullish
• The question is whether that will continue to be the case. Concerns are rising Treasury yields and the U.S. dollar (DXY), which have broken above short-term resistance levels on Feb13
• Friday’s PPI report should provide more clarity as to how concerned we should be about rising inflation

• Q1 FY9/24 results were at a record high for the company for a first quarter period, with the company benefitting from stronger-than-expected demand from the auto sector, together with a forex tailwind from a weak Japanese yen benefitting the Overseas Subsidiaries segment; this business saw a major uplift in profitability YoY with positive trading conditions in the Americas and Thailand for exported Japanese goods.
• Demand also remained firm in the company’s specialist areas of expertise such as bio-related and feed-related areas, and geothermal equipment.
• The company has maintained FY9/24 guidance, which indicates some expectations of auto demand normalizing from pronounced levels in Q1 FY9/24.

• Originally, the MBO for Outsourcing Inc (2427 JP) was expected to get launched end-January 2024. A late-ish filing with regard to the EU’s Foreign Subsidies Regulation regime prompted a delay.
• Yesterday Outsourcing announced a delay its earnings release by 3 business days, the delay “procedures related to impairment losses are continuing.”
• Outsourcing shares are down hard on this. -1.5% as I write. I examine.

• Outsourcing Inc (2427 JP) has delayed the announcement of its 4QFY2023 results from 14 to 19 February as the impairment loss accounting is yet to be completed. 
• Outsourcing has a history of impairments, resulting in missed forecasts, which suggests a weak 4Q. The concern is that a weak 4Q could force Bain to trim its JPY1,755 offer. 
• Persol Holdings (2181 JP) guidance cut today suggests a weak 4Q reflects near-term industry weakness rather than company-specific issues. The weak 4Q is a valuable cover to justify the less-than-stellar offer.

• Stylam Industries (SYIL IN) reported its best-ever EBITDA margin of 22.3% Vs 16.8% due to a raw material price decline. Revenues continued to remain soft, with growth of -8% YoY.
• The company completed its brownfield expansion to increase the plant capacity by 40% and is now embarking on a capacity expansion of 200 crores in FY25, effectively doubling its revenues. 
• Stylam Industries (SYIL IN) trades at 22x/19x FY24e/25e, with a potential for doubling of revenues over the next 3-5 years.

• Octillion Energy Holdings (OE HK) is looking to raise US$400m in its upcoming Hong Kong IPO.
• Octillion’s main revenue driver has been its EV battery systems with battery cells over the track record period, with a healthy balance sheet to support its cash burn. 
• However, its revenue growth fell off a cliff in 1H23 due to its heavy reliance on a single customer, which doesn’t appear sustainable, in our view.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We view Selecta’s ESG as “Adequate”, in line with the Environmental and Governance scores, while the Social pillar is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.
• Selecta claims to be the leader in the European vending machine market. The company operates vending and coffee machines in workplaces, public areas (e.g. hospitals, universities, train stations, airports and petrol stations) and entertainment venues.

• Large-Cap indexes (S&P 500, Nasdaq 100) remain bullish, finding support at their respective 20-day MAs since November 2023, and we remain bullish
• The question is whether that will continue to be the case. Concerns are rising Treasury yields and the U.S. dollar (DXY), which have broken above short-term resistance levels on Feb13
• Friday’s PPI report should provide more clarity as to how concerned we should be about rising inflation

• Q1 FY9/24 results were at a record high for the company for a first quarter period, with the company benefitting from stronger-than-expected demand from the auto sector, together with a forex tailwind from a weak Japanese yen benefitting the Overseas Subsidiaries segment; this business saw a major uplift in profitability YoY with positive trading conditions in the Americas and Thailand for exported Japanese goods.
• Demand also remained firm in the company’s specialist areas of expertise such as bio-related and feed-related areas, and geothermal equipment.
• The company has maintained FY9/24 guidance, which indicates some expectations of auto demand normalizing from pronounced levels in Q1 FY9/24.

• At the last close, GMR Airports Infrastructure (GMRI IN) has a market cap of US$6.23bn and a free float market cap of US$2.48bn.
• Passive global trackers are estimated to need to buy 223.33m shares (US$230m; 4.4x ADV) of GMR Airports Infrastructure (GMRI IN) at the close on 29 February.
• GQG Partners (GQG AU) has been a big buyer since December and holds 4.98% of the company. The stock could run up for a few more weeks.

Key points (machine generated)

• Vestis is in a favorable position to capitalize on the growth opportunities in the uniform rental and workplace supplies industry.
• The company has implemented operational improvements and expanded its salesforce, which will likely lead to improved margins.
• With a new Board of Directors and a refreshed management team, Vestis is expected to catch up with its competitors in terms of growth and profitability. The analysts project a 30% internal rate of return and a target price of $39/share by the end of 2025.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• At the last close, GMR Airports Infrastructure (GMRI IN) has a market cap of US$6.23bn and a free float market cap of US$2.48bn.
• Passive global trackers are estimated to need to buy 223.33m shares (US$230m; 4.4x ADV) of GMR Airports Infrastructure (GMRI IN) at the close on 29 February.
• GQG Partners (GQG AU) has been a big buyer since December and holds 4.98% of the company. The stock could run up for a few more weeks.

Key points (machine generated)

• Vestis is in a favorable position to capitalize on the growth opportunities in the uniform rental and workplace supplies industry.
• The company has implemented operational improvements and expanded its salesforce, which will likely lead to improved margins.
• With a new Board of Directors and a refreshed management team, Vestis is expected to catch up with its competitors in terms of growth and profitability. The analysts project a 30% internal rate of return and a target price of $39/share by the end of 2025.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We discuss the surging share cancellations in Korea in 2024. As of 8 February 2024, Korean companies have announced 3.3 trillion won worth of shares to be completed this year. 
• At current blistering pace, it is likely that the share cancellations in Korea could jump at least 100% YoY to jump more than 10 trillion won in 2024. 
• Some of the leading Korean companies including Samsung C&T and KT&G that have announced share cancellations this year continue to outperform the market on average. 

• Recruit Holdings (6098 JP) reported 3QFY03/2024 results on Friday. Revenues decreased YoY due to decline in HR Tech revenues, while Adj. EBITDA for the quarter increased YoY. Both Beat consensus estimates.
• Weakening of labour markets and new pricing model have impacted HR Tech revenues, while cut down on investments have helped improve HR Tech margins.
• The company has launched Indeed Plus to help improve earnings, which we don’t expect to have a major impact on Recruit Holdings (6098 JP) ’s earnings in the near term.

• Q423 earnings fell sharply, but were sufficient to hit FY23 guidance
• FY24 guidance also lower, but allows for a very wide range of outcomes
• Management raised concerns about Red Sea impact, L-T excess supply issues

Avon Protection’s capital markets day highlighted its continued focus on medium-term margin expansion (targeting operating margin of 14–16%), concentrating on its core business of respirators and head protection. The unwinding of the armour business, alongside the consolidation of Team Wendy (acquired in H220) should enable Avon to benefit from rising global defence spending. Its strong relationship with the US DoD, and organic growth opportunities with recurring revenue from necessary product replacements, should bolster its medium-term target for ROIC to exceed 17%, which would surpass the average of UK defence peers.

• W.W. Grainger had a robust fourth quarter and full year for 2023, securing record sales and earnings for the year.
• The firm’s strategic focus on delivering optimum customer experience and service played a substantial role in this success.
• Grainger invested heavily in technology and supply chain enhancements to support its operations, particularly in its High-Touch Solutions model, which has seen a significant digital transformation.

• We discuss the surging share cancellations in Korea in 2024. As of 8 February 2024, Korean companies have announced 3.3 trillion won worth of shares to be completed this year. 
• At current blistering pace, it is likely that the share cancellations in Korea could jump at least 100% YoY to jump more than 10 trillion won in 2024. 
• Some of the leading Korean companies including Samsung C&T and KT&G that have announced share cancellations this year continue to outperform the market on average. 

• Recruit Holdings (6098 JP) reported 3QFY03/2024 results on Friday. Revenues decreased YoY due to decline in HR Tech revenues, while Adj. EBITDA for the quarter increased YoY. Both Beat consensus estimates.
• Weakening of labour markets and new pricing model have impacted HR Tech revenues, while cut down on investments have helped improve HR Tech margins.
• The company has launched Indeed Plus to help improve earnings, which we don’t expect to have a major impact on Recruit Holdings (6098 JP) ’s earnings in the near term.

• Q423 earnings fell sharply, but were sufficient to hit FY23 guidance
• FY24 guidance also lower, but allows for a very wide range of outcomes
• Management raised concerns about Red Sea impact, L-T excess supply issues

Avon Protection’s capital markets day highlighted its continued focus on medium-term margin expansion (targeting operating margin of 14–16%), concentrating on its core business of respirators and head protection. The unwinding of the armour business, alongside the consolidation of Team Wendy (acquired in H220) should enable Avon to benefit from rising global defence spending. Its strong relationship with the US DoD, and organic growth opportunities with recurring revenue from necessary product replacements, should bolster its medium-term target for ROIC to exceed 17%, which would surpass the average of UK defence peers.

• W.W. Grainger had a robust fourth quarter and full year for 2023, securing record sales and earnings for the year.
• The firm’s strategic focus on delivering optimum customer experience and service played a substantial role in this success.
• Grainger invested heavily in technology and supply chain enhancements to support its operations, particularly in its High-Touch Solutions model, which has seen a significant digital transformation.

• On Thursday after the close, an entity tied to Polaris Capital announced an MBO of Welbe Inc (6556 JP). (Note this is Welbe not Welby Inc (4438 JP)). 
• The MBO by Tender Offer is set at ¥1,089/share is at a 29.952% premium to Thursday’s last trade. Coincidentally. It is well below where it traded 3-5 years ago.
• If large domestic financial investors want a bump, we might see some fun, but I expect there is enough ownership willing to tender to get this over the hump.

• Dover Management’s Q4 2023 earnings indicated a generally positive company performance in a challenging market context.
• CEO Richard Tobin and CFO Brad Cerepak conveyed a forward looking stance based on Q4’s market conditions following on from Q3, focusing on maintaining production levels to balance channel inventories.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Stanley Black & Decker Management has expressed an optimistic outlook on their financial performance for the year 2024.
• Despite facing challenging market conditions during 2023, the company demonstrated solid performance, with significant progress in two of their most important focus areas—generating above $850 million free cash flow and the continuous improvement of adjusted gross margin through each quarter.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Trading in the shares of Spanish rolling stock manufacturer Talgo SA (TLGO SM) is suspended pending a possible €5/share takeover offer from Hungarian group Magyar Vagon.
• Stock market performance of Talgo has been lacklustre. Now, at €4.79, the shares are trading above comparables, in line with my fair value estimate (DCF-based) of €4.76/share. 
• Top investors (>45%) seem very willing to cash in and I would imagine that Magyar Vagon has had the time to seek green light assurances from the Spanish Government. Long.

• On Thursday after the close, an entity tied to Polaris Capital announced an MBO of Welbe Inc (6556 JP). (Note this is Welbe not Welby Inc (4438 JP)). 
• The MBO by Tender Offer is set at ¥1,089/share is at a 29.952% premium to Thursday’s last trade. Coincidentally. It is well below where it traded 3-5 years ago.
• If large domestic financial investors want a bump, we might see some fun, but I expect there is enough ownership willing to tender to get this over the hump.

• Dover Management’s Q4 2023 earnings indicated a generally positive company performance in a challenging market context.
• CEO Richard Tobin and CFO Brad Cerepak conveyed a forward looking stance based on Q4’s market conditions following on from Q3, focusing on maintaining production levels to balance channel inventories.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Stanley Black & Decker Management has expressed an optimistic outlook on their financial performance for the year 2024.
• Despite facing challenging market conditions during 2023, the company demonstrated solid performance, with significant progress in two of their most important focus areas—generating above $850 million free cash flow and the continuous improvement of adjusted gross margin through each quarter.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Trading in the shares of Spanish rolling stock manufacturer Talgo SA (TLGO SM) is suspended pending a possible €5/share takeover offer from Hungarian group Magyar Vagon.
• Stock market performance of Talgo has been lacklustre. Now, at €4.79, the shares are trading above comparables, in line with my fair value estimate (DCF-based) of €4.76/share. 
• Top investors (>45%) seem very willing to cash in and I would imagine that Magyar Vagon has had the time to seek green light assurances from the Spanish Government. Long.