At the time I started acquiring SKF shares, in April 2019, I thought that it would take three years for the company to morph from late-stage concept to a real, grown-up company.
We are half way into that 3-year period and the company continues to meet all the milestones I had envisaged:
View attachment 2606918So that's all good; however, in the interests of balanced posting, what the above nice picture doesn't show is the increase in "shadow" equity, in the form of escrowed ESP shares, which today total 46.4m shares, equivalent to 15% of the company's current 300m shares which are quoted.
Meaning that, when considering SKF's valuation, one needs to account for that not-insignificant additional chunk of stock which exists, but is not quoted.
Frankly, I think that the company is now at a stage of adequate organic capital generation whereby its management and employees no longer need their cash remuneration to be topped up with the issue of shares.
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