Equasens
An investors tribulations
Like many investors most likely, I receive recommendations or snippets of their portfolios from other Substack investors. These are often a useful source of ideas and when I combine it with recommendations from my Moneyweek magazine I was expecting to uncover some potential investments.
Going through seven of the magazines investment ideas, some the work of professional investors I was most disappointed by them as they couldn’t pass the criteria of a high return on equity, capital employed and low debt. They were low return companies.
As mentioned earlier a Substack contributor who is described as a professional investor shared part of his portfolio. They included 15 stocks. Three I had already, there were a couple of financial stocks which generally I stay away from and the rest were low return stocks. Only one, Equasens quoted on the Paris stock exchange was excellent. Here’s my take on the company.
What does Equasens do?
Equasens engages in the development of management software packages for drugstores. Its services include training of employees, software technical support and assistance, provision of computer equipment and technical expertise services. The company was founded by Thierry Ponnelle, Thierry Chapusot and Vincent Ponnelle on January 25, 1996 and is headquartered in Villers-les-Nancy, France.
The percentages I am interested in are EBIT, ROCE, CROIC.
Equasens passes the main tests of a quality company. Its debt to equity is low at 25.7% and it pays a dividend of 2.65% with a history of dividend increases. In all I would be happy to buy it.
Sadly though my broker informs me that Equasens is not available to retail investors. So I would probably have to purchase it through another broker, but this is too much hassle. However the purpose of this article is to show that after a few hours researching not everything goes according to plan when investing and to present Equasens as an investment case for other investors.