A Spanish engineering firm that, alongside its service activities, has also developed several renewable energy projects under its own management. Although construction proceeded as planned, the high capital intensity not only makes the company vulnerable, but the financing costs also weigh on profits. For that reason, management has decided to reduce its majority stakes in these projects to minority interests.

With the arrival of the new CEO, Thi s company finally gained vision and momentum, yet the market still does not seem to recognise it. Our analysts see this as a mouth-watering opportunity. Read our fundamental analysis. Sharesunderten adds 5,000 shares to the portfolio at a price of 53p, which equates to a total investment of roughly £2,500.

The share price currently trades around CHF 1.15. That appears low, especially considering the company is now completely debt-free following the sale of Skidata and holds a net cash position. Yet the stock remains under pressure. Why? Because balance sheet repair does not automatically translate into profit recovery.

More and more everyday services are becoming automated. From passport photos to laundry and printing, consumers increasingly rely on unattended machines that generate predictable and recurring revenues. One international operator has successfully built a scalable network around this trend, combining stable cash flows with structural growth opportunities. Despite recent short-term uncertainty, the underlying performance remains strong and the outlook points towards another record year. In this analysis, we examine the business model, results and growth prospects in detail.

Investor confidence in Auction Technology Group (ATG) has suffered a significant dent in 2025. A profit warning in August, followed by a substantial goodwill write-down on previous acquisitions, has reinforced the perception that growth at ATG is no longer automatically linked to predictable profitability. Although the company continues to invest strategically and expand its position in online auctions, the market has reacted in recent months primarily to disappointing margins, increasing complexity, and heightened uncertainty about the quality of previous acquisitions. However, the stock has since fallen so much that a major shareholder has made several attempts to acquire the company, but ATG is resisting this. Sharesunderten is seizing this opportunity and adding 650 ATG shares to its portfolio. Profile This British company, Auction Technology Group, traces its roots back to 1971. What began as a traditional auction service provider has evolved over the decades to match the sector’s technological development. The real transformation occurred in the 2000s, when the company increasingly focused on digitalization and online auctions. This shifted ATG from a traditional auction-related company to a technology platform that facilitates auctions without acting as an auction house itself. By bringing together platforms like LiveAuctioneers, Proxibid, The Saleroom, and Invaluable, ATG built a global network of auction houses and buyers. This network is crucial to the company’s profitability. The more listings appear on the platforms, the more attractive it becomes for buyers to join, which in turn leads to higher bids and more transactions. ATG facilitates auctions across a wide range of categories. In the art and antiques segment, this includes paintings, jewelry, coins, design objects, and collectibles. In the industrial and commercial segment, for example, machinery, construction equipment, trucks, agricultural equipment, and complete business inventories are auctioned. The revenue model consists of several components. The foundation is formed by commissions on transactions and fixed fees or subscriptions that auction houses pay for access to the platforms. In addition, ATG increasingly earns revenue from ancillary services, such as shipping, payments, and marketing services. Acquisitions ATG’s current position has been largely built through a long series of acquisitions. This acquisition strategy began relatively controlled, but has become increasingly capital-intensive and complex in recent years, eroding investor confidence. Around and shortly after the IPO in 2021, the acquisition strategy was further accelerated, with larger transactions such as LiveAuctioneers and Auction Mobility. In the 2025 fiscal year, the downside of this strategy came to light. ATG had to make a substantial goodwill write-down on previous acquisitions. A total of over $150 million was written off. This write-down had no cash flow impact, but it did confirm that part of the acquisition prices paid were no longer defensible based on the expected returns. In August 2025, ATG announced the acquisition of Chairish, an online marketplace for vintage furniture and design objects with fixed prices. Strategically, Chairish fits with the ambition to broaden its offering and appeal to buyers outside the traditional auction model. The announcement coincided with a profit warning, leading the market to view the transaction not as a logical next step, but as a risky extension at a time when confidence was already fragile. Takeover attempts by major shareholder In recent weeks, major shareholder FitzWalter Capital Partners has been in the spotlight. They made several attempts to take ATG private through successive bids. ATG rejected these attempts because the board considered the proposals insufficient and believed the bids did not adequately reflect the platform’s value and growth prospects. FitzWalter has since definitively stated that it will not submit a bid, thus ending the takeover process. Importantly, this episode clearly demonstrates that ATG is being followed not only by investors but also by parties looking at the company strategically. The fact that a major shareholder was willing to consider a bid confirms that the platform is a valuable asset in a market that remains highly fragmented globally. It is noteworthy that FitzWalter Capital purchased additional shares in early February, indicating that although the takeover bids were unsuccessful, they consider this level far too low to pass up. Results ATG operates with a split fiscal year ending on September 30. FY26 therefore covers the period from October 1, 2025, to September 30, 2026. In the Q1 trading update (through December 31, 2025), ATG reported a clear acceleration in revenue development. Revenue growth in constant currency amounted to 8.5%. This growth was primarily driven by the Arts & Antiques division, while Industrial & Commercial showed a slight decline in revenue. Chairish, which falls within Arts & Antiques, also made a good contribution to pro forma growth, with ATG explicitly stating that the benefits of becoming part of the group are starting to become apparent. At the same time, the integration remains on track, with operational synergies still moving towards an annual run rate of $8 million. ATG reported that the adjusted net debt/adjusted EBITDA ratio decreased to 2.0x at the end of December, compared to 2.2x at the end of FY25. Based on this Q1 performance, management confirmed its guidance for FY26. The company still expects pro forma revenue growth of 4–5%, with the growth being more pronounced in the first half of the year. ATG also expects an adjusted EBITDA margin of 34.5–35.5%. Management also reiterated that adjusted free cash flow remains strong and that leverage should be well below 2x by the end of FY26. Estimates The impact of the Chairish acquisition is clearly visible in the estimates for the coming years. The figures show that ATG is currently in a transition phase, with revenue growth continuing, accelerating in 2026 when the Chairish acquisition is fully factored in, but profitability is temporarily under pressure. This is a direct result of the integration of recent acquisitions, the shift toward lower-margin services, and the higher costs in the first years after an acquisition. It is expected that once the integration of acquisitions is complete and economies of scale are truly realized, ATG will once again benefit from operating leverage. Profitability is expected to increase

On paper, this recycling technology specialist seems to be in the right place. Governments are enforcing deposit refund systems (DRS), supermarkets need its reverse vending machines, and the market is growing towards hundreds of millions of consumers. In practice, however, profitability is lagging, quarterly figures are volatile, and uncertainty is increasing now that the CEO is leaving.

Investors naturally tend to show a strong home bias. They prefer to invest in companies from their own country, as these feel more familiar and closer to home. However, by investing only in the Netherlands or Europe, many investors miss out on opportunities in fast-growing markets. Geographic diversification lowers risks, provides access to sectors that are barely represented in Europe, and opens the door to regions with structurally higher growth, such as China. With companies like this, we are not only investing in a specific niche, but we are also achieving geographic diversification at the same time. Sharesunderten includes 270 shares in the portfolio.

How a company deploys its capital often determines long-term success. Cash flow can be used in many ways, from rewarding shareholders to investing in growth or strengthening the balance sheet. When these choices are made consistently, value tends to accumulate over time. The business discussed here stands out for its balanced approach, combining shareholder returns with disciplined investment and financial prudence. While share price performance has been uneven over recent years, the underlying strategy points to steady progress. This provides the foundation for a renewed focus on future value creation.

Sometimes everything seems to be right with a stock: revenue is growing, margins are improving, and the order book looks strong. The valuation is historically low. Everything looks so positive that we almost start to wonder if it’s too good to be true. But that’s not the case here, as four directors recently bought back shares. This gives Shares Under Ten confidence that this stock is on the verge of a strong recovery. In our view, this is an underexposed and undervalued stock.

Let’s be honest — it does look good when you’re trading “shares under ten” and you’ve got Rolls-Royce in your portfolio. Despite the prestigious name, this stock fully qualifies as a true penny stock. Shares Under Ten is adding 2,000 shares to the portfolio at the current price of around 97 pence. 5-Year Share Price Performance – Rolls-Royce Holdings plc. Company Profile The Rolls-Royce brand is, of course, best known for its luxury cars — but many may not realise that the automotive business has long been owned by BMW. Rolls-Royce Holdings plc, founded in 1884 and headquartered in London, operates independently and focuses on engineering and power systems. The company is structured into four divisions: Civil Aerospace, Power Systems, Defence, and New Markets. The Civil Aerospace division designs, manufactures, and services engines for large commercial aircraft, regional jets, and business aviation. The Power Systems division develops and sells integrated power and propulsion solutions for marine, defence, and selected industrial sectors. The Defence division supplies engines for military transport aircraft, patrol aircraft, and naval propulsion. The New Markets division focuses on small modular reactors (SMRs) and new electric energy solutions, as well as maintenance, repair, and overhaul (MRO) services. The New Markets division is expected to play a key role in the global energy transition. Rolls-Royce is working to accelerate the launch of a new generation of mini nuclear reactors, a development fast-tracked by the ongoing energy crisis. While these SMRs aren’t expected to be operational before the early 2030s, management is eager to speed up the process, especially as Western nations seek to reduce dependence on Russian fossil fuels following the invasion of Ukraine.   However, engineers within the company have expressed frustration with the slow pace of regulatory approval in the UK, arguing that the government’s process for reviewing reactor safety is unnecessarily burdensome. Rolls-Royce aims to build SMRs that generate around 470 megawatts of power — just one-seventh the output of a large-scale nuclear plant, but at roughly one-twelfth the cost. The UK government has stated that the company’s technology is entirely new and must therefore undergo thorough scrutiny. Rolls-Royce engineers, however, point out that the technology is based on decades of experience in nuclear-powered submarines, a proven and extensively tested field.   Rolls-Royce cannot be acquired without government approval. The UK government holds a so-called “golden share,” which grants it special veto rights. This share does not offer profit participation or capital rights, but allows government representatives to attend general meetings and block specific strategic moves — such as takeover bids — that could affect national interests. Financials The UK’s most well-known engineering firm was hit hard by the COVID-19 pandemic, as airlines pay Rolls-Royce based on the number of flight hours logged by its engines. Given these extraordinary circumstances, FY2020 and FY2021 are not considered reliable indicators of the company’s underlying performance. In 2021, Rolls-Royce reported £414 million in underlying operating profit, a sharp turnaround from a loss the previous year. Growth in the Power Systems and Defence divisions contributed significantly to this financial improvement. However, the company also reported a free cash outflow of £1.5 billion from continuing operations in the same year. CEO Warren East commented on the results: “We have improved our financial performance, met our short-term commitments, secured new business, and made important strategic progress during the year. While challenges remain, we are increasingly confident about the future and the significant commercial opportunities presented by the energy transition.” Rolls-Royce’s credit profile has improved since the onset of the pandemic, and its exposure to the Russia-Ukraine conflict remains limited. As a result, Moody’s upgraded the company’s outlook from negative to stable. Pros Strong visibility and predictability of earnings Stable margins in the Defence division New CEO Warren East is aiming to bring fresh momentum to the company Cons Loss of market share in the business jet segment Disappointing cash flow development High R&D costs for new engine programmes Conclusion We are not particularly enthusiastic about this stock. While management certainly shows no lack of ambition, those good intentions have yet to translate into improved results. The company appears to be spread too thin across too many markets — and it’s simply not possible to be best-in-class everywhere. A more focused approach would likely serve Rolls-Royce well. Divesting non-core activities and doubling down on key strengths could strengthen both performance and investor confidence. The business jet division, for example, already faced structural challenges before the energy crisis, and its outlook remains weak. A sale of this unit might be a sensible move — especially if a solid price can still be secured. Back in August 2021, management announced it was open to selling assets such as ITP Aero, the turbine blade manufacturer, in an effort to raise at least £2 billion. Strategic asset sales like these may be necessary to unlock value and refocus the company. Third-Party Analyst Ratings for Rolls-Royce.   Globally, twenty analysts currently cover Rolls-Royce Holdings, and the consensus view is that the stock could gain around 28% over the next 12 to 18 months. At Shares Under Ten, we believe the share price has likely found a bottom, and we’re taking this opportunity to add the stock to our portfolio. Naturally, we’ll be monitoring developments closely. A takeover seems highly unlikely under current circumstances. Rolls-Royce plays a vital role in the UK defence sector, and the government holds a golden share that gives it veto power over any unwanted acquisition. In addition, ceding control over Rolls-Royce’s expertise in modular nuclear reactors would run counter to the UK’s long-term energy policy. Former Prime Minister Boris Johnson has been a strong advocate for nuclear energy and clearly sees the company’s know-how as a strategic national asset — especially amid the current energy crisis.Takeover rumours have surfaced before. Rolls-Royce was the subject of M&A speculation both in 2015 and again in 2020. However, following a series of profit warnings in 2015, the stock price fell by around 75%, and its recovery

The Dutch staffing company Brunel is a globally operating specialist employment agency, active in various fields, including energy, engineering and IT. Brunel distinguishes itself from its competitors by its focus on highly qualified specialists and niche markets, such as the oil and gas industry and renewable energy, combined with a strong global presence. Employment agencies are generally considered early cyclical.

Sharesunderten is surprised that the price of this Belgian share Deceuninck has fallen by more than 10 percent in one year, despite the fact that the price of the Turkish (listed) company Ege Profil, of which Deceuninck owns almost 88 percent of all shares, has risen by no less than 280 percent in one year. Investors seem concerned about the

Grab is a young and fast-growing tech company with strong market positions in Southeast Asia. The company was founded as a kind of Uber to match taxis and customers, but has grown into a super app that allows users to initiate all kinds of activities. Grab has been listed for two years and despite the phenomenal growth that the company

The combination of a share buyback and a (higher) dividend payout could push BP’s share price significantly higher over the coming months and years. If everything goes according to plan, shareholders can expect a total cash return of 8% to 11% per share from 2022 onwards — considerably more than what the major industry peers are offering. We’re aiming for