It’s amazing that Teqnion AB is only down 11-12% on the day. Management consistently say the right things, but deliver weak results. The way they have been acquiring businesses have been flawed. Buying cyclically high earners at what turned out to be the top of the cycle has caught up with them.

One of my holdings, Evolution AB, adjusted their reported results for positive earn-outs. This is something that Teqnion avoided doing. As the company parrots honesty, integrity and being open with their shareholders, they avoid shining a light on the fact that EBITA is highly overstated in their most recent report. This would’ve turned a really bad report into a terrible report.

Just because management says the right things, don’t mean they’re the right people to invest in.