PAH3 GR

Porsche Automobil Holding SE

Industrial/Transportation, Event Driven/Special Sit


Presented:06/22/2020
Price:€50.92
Cap:$17.37B
Current Price:€39.72
Cap:$13.55B

Presented

Date06/22/2020
Price€50.92
Market Cap$17.37B
Ent Value$22.12B
P/E Ratio3.54x
Book Value€115.21
Div Yield4.34%
Shares O/S306.25M
Ave Daily Vol838,114
Short IntN/A

Current

Price€39.72
Market Cap$13.55B
Porsche Automobil Holding SE engages in the development, manufacture, and trading of automobile. It operates through the Porsche SE (PSE) and Intelligent Transport Systems (ITS) segments. The PSE segment comprises Porsche SE's holding operations and contains the investments in Volkswagen AG and INRIX Inc. together with other additional investments. The ITS segment develops smart software solutions for transport logistics as well as traffic planning and management. The company was founded on June 26, 2007 and is headquartered in Stuttgart, Germany.

Publicly traded companies mentioned herein: Heineken NV (HEIA NA) Porsche Automobil Holding SE (PAH3 GR), Tesla Inc (TSLA), Volkswagen AG (VOW GR)

Highlights

The presenter is long shares of Porsche Automobil Holding SE (PAH3 GR), which currently trade at a ~30% discount to NAV. Since 2009/2010, PAH3 has traded between a range of 15% - 35% NAV discount due to an overhang from ongoing litigation related to its ownership stake in VOW GR. As this litigation plays out, he expects the plaintiffs’ claims to be rejected, thereby providing a meaningful catalyst for PAH3’s discount to move back toward ~15%, with further upside if VOW’s shares rally. When VOW rallies, PAH3’s discount tends to close because investors often express VOW through PAH3. He also believes that VOW is one of the best positioned OEMs given their product mix and EV capabilities, and views them as potentially capable of competing with TSLA. Additionally, there is strategic optionality around a potential merger between VOW and PAH3 given the overlap on their boards, once the litigation is resolved. 

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