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Strong insider buying in Stabilus


The weeks since the reported Q3 2015 numbers in late August, have seen strong insider buying in German capital goods company Stabilus, with the most recent transactions happening last week.

The insider buying comes despite the fact that Stabilus is exposed towards the Chinese automotive industry (roughly 7% of sales are related to China), which investors have been particularly worried about recently. However, Stabilus’s position is a special one, focusing on the luxury SUV segment.

The following transaction were made by management:

  • On August 17th, CEO Dietmar Siemssen bought 2 000 shares at EUR 34 per share.
  • On September 21st, Bernd-Dietrich Bockamp bought 616 shares at EUR 31,70 per share.
  • On September 23rd, Andreas Schr√∂der bought 1234 shares at EUR 30,8.

Stabilus’ CEO Dieter Siemssen stated in connection with Q3 numbers in August: “In the first nine-months of this fiscal year, we achieved double digit growth both in revenue and our operating results in all regions and segments. Our development is especially strong in the Chinese market, where we grow ca 35% in Q3 compared to the previous year.” Stabilus even increased its FY 2015 guidance on the basis of strong product demand in all regions and the continuously strong USD.

In the Chinese automobile market, there is a shift in the car mix from sedans to SUVs and Multi-Purpose Vehicles. As the worldwide market leader in their product segment, Stabilus benefits at an above average rate from this development. Stabilus stated in late August that it experiences strong demand for its gas springs, dampers and POWERISE systems in China and was able to win important new projects in the third quarter of fiscal 2015. The company also stated that beginning 2016, to realise their growth potential in China, next to gas springs for the automotive sector it will start to produce POWERISE systems and products for their industrial business locally in China in its new Chinese manufacturing plant.

We are encouraged to see that management is putting their money where their mouth is.


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