Idea note
This is an Idea note; It’s a collection of early signals – companies mentioned in fund letters, blogs, or by sharp investors online. Not a full pitch, just a starting point for ideas that might be worth a more in-depth look.
Fallen Darling in the Growing Pet Care Market
Idea source: Alcur Grow / Mikael Holm
Price 41.6 SEK (2025-06-27)
Swedencare - Swedish pet healthcare company that develops, manufactures, and sells premium products worldwide, including supplements, dental care, and pharmaceuticals for cats, dogs, and horses.
Ticker: SECARE | Timeframe: 18-24 months | 🔁 Turnaround
Alcur believes Swedencare presents a strong turnaround opportunity in the growing pet care market. The fund manager sees the company as a “former darling” that has fallen sharply from grace, offering an attractive entry point after the stock dropped by half over three years. Holm highlights the positive market dynamics in pet care, noting structural tailwinds as consumers are willing to spend more on their pets. The manager considers Swedencare a prime example of what Alcur looks for: companies combining high organic growth with operational leverage, where revenues increase faster than costs.
Setup: Former high-flyer now trading at 35% discount from 1-year highs, creating value opportunity.
Latest Development: Weak Q1 2025 results with 8% stock decline, but strong underlying market dynamics intact.
Mispricing Reason: Market overreaction to cyclical slowdown in growth rates, ignoring structural pet care trends.
Value Catalysts: Margin expansion, acquisition integration, return to double-digit organic growth.
Valuation: Trading at 22.6x EV/EBIT NTM vs 3-year median of 28.0x.
Risks: Continued economic headwinds, integration challenges, competitive pressure.
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