Before the bell: Europe Stands Alone

After the press conference between President Zelensky and Trump, it is clear that support for Ukraine is no longer unconditional. In Belgium, we expect a negative reaction to Atenor’s earnings report.

It seems that investors are not concerned about the failed commodities deal between the United States and Ukraine. On Friday, President Trump made it clear that support for Ukraine is no longer unconditional. Despite this, there is no negative reaction in Europe this morning, with futures pointing to a green market opening. Interest rates in the United States fell sharply on Friday after weak economic data, which was positive for stock investors. The Nasdaq technology index reacted by gaining 1.6%, and today, technology stocks are also performing well in Asia. Notable movers included computer manufacturers Dell (-4.7%) and Hewlett-Packard (-6.8%) following disappointing results due to continued weakness in the PC market.

Today, hydrogen fuel cell specialist Plug Power will report earnings, while in Europe, February inflation data and European purchasing managers’ indices are on the agenda.

Back to the Basics

Did you know that Shell, like Belgian chemical producer Solvay, also has a chemicals division? Not for much longer if management gets its way. According to The Wall Street Journal, the company is looking to sell its chemical operations in Europe and the United States. This includes its propylene division, which produces materials for plastic bags and even bulletproof vests. Last year, Shell already warned that this division would post weaker results, leading to the launch of a cost-cutting program. Will this divestment bring extra cash to shareholders, or will the proceeds be reinvested elsewhere? One thing is certain: Shell wants to refocus on its most profitable segments, such as oil and gas. Back to the basics.

Learning From the Past

A donkey never hits the same stone twice, but Atenor’s latest capital operation leaves much to be desired. In a press release on Friday evening, the real estate developer disclosed a 39 million euro loss and announced that it is considering another capital increase. This immediately reminded us of 2023, when Atenor made an urgent appeal for a capital increase, only to take six months before actually following through. Short sellers had a field day, shorting the stock for months in anticipation of downward pressure from the expected capital increase. This time, things are moving faster, but there will still be significant pressure on the stock price. On Sunday, Atenor completed a capital increase at 2.62 euro per share, nearly half the price of its previous capital raise at 5 euro per share. This brings in a modest 45.3 million euro in new funds. However, small investors are excluded from the deal, meaning they will face significant dilution. The number of shares will increase by 17.3 million, bringing the total to 43.7 million shares.

Spaarvarken analyst Stefan Willems previously held Atenor as a short-term trade in his Buy and Sell portfolio, selling at 6.44 euro for a 29% gain. His reason for exiting? The revelation that Atenor’s CFO had been gone for months—without the company informing the market. At that time, we gave management a red card. This weekend’s operation has further eroded our already nonexistent trust in Atenor’s leadership. We strongly advise staying far away from Atenor.

Did You Know…

that Berkshire Hathaway paid 26.8 billion dollar in corporate taxes in 2024? That amounts to approximately 5% of all corporate tax revenue in the United States. If Warren Buffett were to write a 1 million dollar check to the IRS every 20 minutes for an entire year, it still wouldn’t be enough to cover this tax bill.

This article was translated from Dutch and was originally published on Spaarvarkens.be.