Gyldendal
Denmarks leading publisher of fiction and non-fiction for children and adults and of educational material of all kinds.
Investment has been made in Gyldendal since the late 1980'ies, as the share was significantly undervalued, both in terms of physical assets and publishing rights, plus a major potential in business effectiveness. This was partly due to the limited liquidity in a little share and a major controlling shareholder.
After a number of difficult years, Gyldendal now seems to prioritise sound business effectiveness - closing non-performing activities, reducing cost - and minimizing new major efforts. This has resulted in a strong balance sheet, good cash flow and a reasonable dividend.
Despite a stagnating market, Gyldendal holds major further potential in recognising marketing, distribution, operations and finance as professional disciplines with importance equal to publishing and editing - and easier achievable - and in getting to terms with legacy costs.
Within the framework of the controlling shareholders current implied strategy, the holding is considered an illiquid, solid, long term corporate bond with a reasonable coupon.