An Example of a Multibagger Stock

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A multibagger is a stock that multiples many times over. An investor in a multibagger will reap a huge return of their original investment as opposed to say simply doubling the money.

One example of a multibagger is Continental Aktiengesellschaft (CTTAY) of Germany. Here is a brief intro about the company:

Today, Continental ranks among the top 5 automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also a competent partner in networked automobile communication.

Source: Corporate Site

Continental’s ADR soared from under $3.00 in Feb, 2009 to over $45.00 recently.That amounts to a multibagger-type return of 15 times the original price.The ADR had a 5 for 1 split in 2013.

Click to enlarge

CTTAY-10 Year Returns

Note: Chart shown above is based on closing prices a few a days ago

Source: Yahoo Finance

Disclosure: Long CTTAY

Knowledge is Power: Helicopter Money, Dividends, Indexing Edition

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Topic: Dividends

Earlier:

University of Oxford, UK Museum

University of Oxford, UK – Museum

The Highest Railway Line in the World: Qinghai-Tibet Railway

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The Qinghai-Tibet Railway is the world’s highest railway line in the world. At its highest point it is 5,072 meters (or 16,640 feet) above sea level.The railway line was opened 10 years ago this month and is 1,956 kilometers (or 1,215 miles) long connecting Xining, the capital of Northwest China’s Qinghai province, to Lhasa, capital of Southwest China’s Tibet autonomous region.

The highest railway station in the world is also located on this railway line. The Tanggula Railway Station on the railway line is at an altitude of 5,068 meters (or 16,627 feet).

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Train in Lhasa Tibet

Train in Lhasa Tibet

Cuona Lake Train

Train passing Cuona Lake, Tibet

Source: Travelling on the Qinghai-Tibet railway, China Daily

Also see:

Which Countries Are Best For Life After Retirement?

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Paris-based Natixis Global Asset Management recently published its 2016 Natixis Global Retirement Index report. This report contains the rankings for Global Retirement Index(GRI) based a study of 43 countries including the BRICS.

The Top 25 countries based on the GRI are shown below:

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Top 25 Countries for Retirement

Source: 2016 Natixis Global Retirement Index, Natixis

Of the top 25 countries 17 are from Europe. This is not surprising as socialist European countries spend heavily on social welfare of the society.

The Top Three countries are Norway, Switzerland and Iceland. The US ranks 14th in this list. Some of the reasons for the low scores for the US include high levels of public debt, increasing tax burden , etc. The report also notes that though the country ranks 5th in per capita income globally, it ranks among the lowest in income equality (37th).

Download the full report:

 

Depressed Stocks May Not Recover For Years

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Stocks that fall to depressed levels may take years to recover.Sometimes such companies may end up going bankrupt and equity becomes worthless. Though stocks may be depressed they may continue to trade and simply frustrate investors for years. Depressed levels can be considered as big declines of 50% or more.

The example below shows the charts of two such depressed companies – Commerzbank(CRZBY) and Deutsche Bank(DB) of Germany. They have plunged over 98% and 87% respectively over the past 10 years. These are two of the largest German banks. With seemingly no end in sight to all the issues facing these lenders investors are treating them as rotten fish.

Another point to remember is that just because stocks fall to 75% or more does not mean they are cheap and investors should invest in them. Former giant Commerzbank even had a 1 for 10 reverse stock split in 2013 in a vain attempt to reverse the continued stock slide. Today it closed at $6 and change.

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DB-CRZBY 10 Year Returns

 

Source: Yahoo Finance

Other depressed stocks include Avon Products Inc.(AVP) down over 86% in 10 years, PDL BioPharma, Inc. (PDLI) off by over 82% in the past decade, Groupon (GRPN) down 77% since its IPO, etc.

Disclosure: No Positions