The outbreak of the coronavirus has created a crisis: the corona crisis. As a result, some companies are lying partially or completely flat. Less production, less turnover and therefore lower share prices. As a result, investors are in the starting blocks to buy the declining shares and the so called aandelen on Dutch investing site Spaarbuidel. But is this smart? No, it is not! Separate the wheat from the chaff. To help you further, we made an analysis of companies that are more than capable of getting it if this crisis lasts too long. Download our stock market analysis on companies with a bankruptcy and emission risk, free of charge and without obligation.
1. Royal Dutch Shell Royal Dutch Shell € 27
Recently, the share was bought with a dot. The unrest in Iran could put the share and the sector back on the map. Energy has been the worst equity sector in the past decade, but this could improve over the next decade. The industry is reducing spending on new oil and natural gas projects and giving more and more money back to shareholders.
Royal Dutch Shell the share in the investment game
Royal Dutch Shell has adopted the friendliest investment approach and is perhaps the share of the global super majors in the investment game. The shares are listed in the Netherlands and also have options, with which additional returns can be obtained if necessary. However, we first aim for prices above € 30 before we consider this.
Royal Dutch Shell share price and dividend
The U.S. shares of the British-Dutch company are currently trading close to the low point of the last year. This trough was approximately $57, which is 13 times the expected profit for 2019. This is lower than their US ‘colleagues’ Chevron CVX and Exxon Mobile (XOM). Their dividend yield is currently as high as 6.5% and we do not expect any reduction. So even if oil prices were to fall moderately, an investment would still look safe.
RDS.A the best share to buy
Investors are best advised to buy Dutch shares (RDS.A). British stocks look better. This is because their dividends are not subject to withholding tax, but that is only interesting for foreign stock market participants. Whether or not you choose to purchase American Royal Dutch Shell depositary receipts (RDS.B) is a decision you can make yourself.
Royal Dutch Shell profit potential
Shell has set itself the target of distributing $20 billion to investors in the years 2021 – 2025 in the form of dividends and share buy-back programs, more than half of the current market value. Listed companies see a profit potential of 30% to 50% for the shares currently trading around 2009 levels.
The stock market analysis of Royal Dutch Shell
Curious about a more detailed stock market analysis of Royal Dutch Shell’s share? Then download our whitepaper in which we analyse the share in detail.
2. ASR € 33.35
At the end of the first half of 2019, ASR had reached 187%, the second highest Solvency 2 ratio of Dutch life insurers. However, taking into account the differences in hybrid use, which ASR does not have in its life business, ASR has the highest Dutch Solvency 2 ratio within the life business.
Do we also take into account the fact that ASR uses the more conservative standard formula? Then the insurer with a like-for-like S2 ratio of 250 %, by far the highest Dutch S2 ratio for life units. Compare their S2 ratio with the following competitors:
ASR price outlook and return
In addition, ASR’s Dutch life division is relatively better positioned for low interest rates and possible EIOPA Review effects by 2021/2022. Meanwhile, Beursgenoten considers the valuation to be cheap. The valuation has a price/earnings forecast of 7.5x for 2021 and a price/book value of 0.8x. And that while the dividend yield is also solid, namely 6% for 2021. On top of that, ASR with a high solvency ratio scores better than its competitors. Another option could be one of the most popular options like Aegon stock in The Netherlands.
3. Berkshire Hathaway $ 226
After Berkshire Hathaway lagged significantly behind the S&P 500 in 2019, it looks like a good basis has been created for 2020 based on the rising book value and revenues. Class A shares listed at around $338,000 rose by approximately 11% in 2019. In contrast, the S&P 500, with which this fund is often compared, increased by 29%. We are going to list the B shares that have $226 at the time of writing.
Concerns about Berkshire
Investors became frustrated by the continuous increase in the stock of pure cash on Berkshire’s balance sheet. Investors are also worried about the direction the company will take when Warren Buffett ceases to be CEO. We believe that Buffett