The Solventis Group is an investment boutique, specialising in small and mid-caps and special situations. It publishes analytical reports and also takes a direct interest in some companies. Its customers are institutional investors who expect innovative and highly profitable ideas. CEO Joachim Schmitt has known SIMONA AG since its IPO in 1989.
Its down-to-earth attitude, love of innovation and international reach are the three most important attributes I associate with SIMONA.
Why did you decide to buy SIMONA shares?
I have known SIMONA for a very long time. At its first Annual General Meeting in 1989 in Bad Kreuznach, I was greeted by the then CEO Dr. Bürkle with a handshake. At that time I was driven more or less by a sense of local patriotism to buy 100 shares at the purchase price of 140 DM. I was later able to attract institutional investors to buy shares in SIMONA AG too.
How would you describe SIMONA in a nutshell?
As a hidden champion or – perhaps a more fitting term – as a local gem.
What do you value about the SIMONA business model?
SIMONA is part of the chemical growth sector and a successful niche supplier within that branch of industry that is able to respond very flexibly to changing market demands.
What do you hope for from SIMONA in the future?
Its international reach must naturally be extended. I would especially like to see a strengthening of its innovative spirit and a greater degree of processing depth. This would enable the company to achieve greater recognition on the capital market. In 2019, with the changes in board personnel, SIMONA also faces some management challenges. They will need to be overcome, and I wish the Supervisory Board and all those involved in that process every success.
How satisfied are you with the commercial development of SIMONA? Where, in your opinion, has progress been made and in what areas or regions should SIMONA develop further?
It is important for SIMONA to keep finding new niches in the future too and develop new products. But it is also important to keep pursuing successful corporate takeovers like Boltaron. What I value about SIMONA is the fact that management plans are always followed by action that delivers tangible results. SIMONA should stick to this policy and not become bogged down by corporate visions, as other companies do.
Would you recommend investors purchase SIMONA shares?
Yes, we actually do that on a professional basis. But, due to the very low free float of about 10 per cent, it tends to be difficult. What is appealing about the SIMONA stock is the reliable growth story and high dividend, which generates much higher returns than any fixed-interest investment.