"Overall business confidence among small and medium-sized enterprises has weakened significantly in July, the Confederation of Finnish Industries (EK) said on Wednesday."
"According to EK's survey, already more than one third of SMEs expected the business situation to deteriorate in the coming months. Construction companies were the most pessimistic."
No Surprise, the Nordic region is on the brink of recession. I heard that the South of Europe was called "the Pig", wonder why?, nevetheless they are all plunging in recession : Spain, Italy, Portugal and Greece. Now it's all about Germany and France..after all Europe has been messed up in the past century with this two power fighting each other. Let's hope that social stability is not eroded in those two sleeping giants, a good reason to have price stability as stamped and promised by the ECB.
"The Swedish publication Dagens Industri wrote in late July that the figure indicating the ratio between the price of construction companies and their result is exceptionally low.
This can be an indication either that the stock is undervalued, or that the market expects the result of the companies to fall sharply."
Let me remind you that the P/E or ration described above was very low, single digit for construction builders in the U.S. in 2006. In 2008, most of them have shed about 80% or more of their stock price value...so undervalued? no...One could argue that they could be overvalued and are pretty optimistic on the outlook of the real estate in the Nordic region or globally...