Hypoport - 57% profit in 4 months - undervalued-shares.com

Hypoport - 57% profit in 4 months

My September 2010 report about Hypoport shares came out just in time. Back then, the company was considered an exotic financial services provider with low liquidity and a niche business. Much of that perception has changed. Since October, four banks, brokerage firms and research houses have reported about the company and the share has recently been trading quite actively. The share price is now EUR 12, compared to EUR 7.50 when I first reported about it. Hypoport is up, up and away.
Strong growth figures have lead to analysts upping their earnings estimate to EUR 1.10 per share for 2012. In retrospective, I reported about the share when it was trading at a price / earnings ratio of less than 7. At the current share price, the share is valued at a p/e of 11, which is still low given the long-term growth potential of the company and the relatively high entrance hurdles to its market.
After a 57% gain in 4 months, short-term orientated investors can consider taking some or all of their profits. Anyone investing with a longer-term view should keep in mind that Hypoport has now officially made it its goal to rise from being the 13th largest German financial services provider to being the 5th largest by 2014.
Germany remains a country where attractively priced, high quality small and midcaps can be found by investors who are willing to put effort into research.