Tracks Humble Group's new price doubling

– Humble has nearly doubled in price since the summer, but it's not too late to join the next 100 percent, says the director of DNB Nordic Small Cap, which has returned 85 percent since its inception in late 2019 and 22 percent in the past year.

– Few people still know the company, although interest in it is growing.

Humble produces, sells and distributes organic and sustainable consumer goods, both through its own brands and through other players.

“The company is strong in sugar-free sweets, protein bars and protein powder, among other things,” says Ludvigsen.

– The balance sheet isn't anything to complain about anymore, and as long as people think the company only sells bamboo toothbrushes, I'm comfortable with the stock having more upside.

Humble is priced at 6-7 times DNB's estimated operating earnings in 2025.

Few are still familiar with the company, although interest is growing

Hans Marius Ludvigsen, Asset Management at DNB

50 percent is very cheap

The second place is Matas, a Nordic cosmetics and beauty products retailer.

– This was originally a Danish supermarket chain and was neither birds nor fish, but now the strategy has been improved, the expression renewed and online investment boosted, says Ludvigsen.

– The company recently bought competitor Kicks, so there should be low and high fruits to be picked on the synergy side.

Ludvigsen believes earnings estimates for the next few years are too low, which contributes to Matas's share being “very cheap by at least 50 per cent”.

Track better margins

Dustin's group is my third favorite.

– The company made a large debt-financed acquisition in 2021, so when the market deteriorated quickly in 2023, it was left with a drop in profits and a leaf on the balance sheet, says the manager.

– The market is still bad, but the margin is under control, and if demand returns to normal this year, the stock should trade much higher.

In recent years, Finnish company Talenom has seen disappointing profit margins and declining prices, due to aggressive expansion through acquisitions.

However, the accounting firm has come a long way in its digital transformation journey, and the margin should have reached its lowest point by now, Ludvigsen believes.

– Then the stock will rise.

An old favorite

Stillfront Gaming Stock is an old favorite, although since the pandemic it has offered little to enjoy.

Ludvigsen notes that the mobile gaming market has stabilized, and he expects organic growth over the course of two quarters of the year.

– The balance sheet is a bit shabby, but it is under control, and from 2025 the cash flow will be good, as most of the additional purchase amounts have been paid for previous acquisitions, he adds.

Stocks didn't rise when interest rates fell late last year, and should see a potential rally once they deliver a half-decent report.