Elkem: Eventual Upside Seems Very Clear Beyond The Trough

Nov. 28, 2024 10:00 AM ETElkem ASA (ELKEF) Stock
(14min)

Summary

  • Elkem's shares have dropped over 50%, but I believe there's significant upside due to the chemical recovery cycle and improved EBITDA performance.
  • Despite its risks, Elkem's foundry business and strategic projects, like the Sicalo project, present a non-trivial upside potential.
  • Recent improvements in EBITDA and operational efficiency, alongside CapEx reductions, indicate that Elkem is on a path to recovery.
  • Elkem's focus on ESG and successful expansion projects in China and France further bolster its long-term investment potential.
  • Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »

Hillside in thick fog. Caucasus.

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Dear readers/followers,

Since my first article on Elkem (OTCPK:ELKEF), the company's shares have lost over 50% (but less than 60%) of their value. My position in this company remains very small, but this is still not a good

The company discussed in this article is only one potential investment in the sector. Members of iREIT on Alpha get access to investment ideas with upsides that I view as significantly higher/better than this one. Consider subscribing and learning more here.

This article was written by

Wolf Report profile picture
33.81K Followers

Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.

He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ELKEF, NHYDY, ORKLY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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