Quality bonds?
How about Wood Seeds?
After years of investing in high-risk products such as cryptocurrencies and other commodities, investors are returning to tried and tested securities. These include corporate bonds issued by reputable companies.
Corporate bonds are experiencing a huge boom in the Czech Republic. From January 2017 to February 2022, 279 bond prospectuses were approved and 613 bond issues totalling CZK 184 billion were issued.
Most of them focus on segments with high stability such as healthcare and pharmaceuticals, renewable energies or raw materials. This also includes timber. Corporate bonds are experiencing a huge boom in the Czech Republic. According to Server Dluhopisář, 279 bond prospectuses were approved between January 2017 and February 2022 and 613 bonds totalling CZK 184 billion were issued.
So how can you tell the good bonds from the risky ones?
You can find an excellent article on this topic here.
Written about us on seznamzpravy.cz
‘One of the leading investors in the timber industry is the Czech company Wood Seeds, which has bought more than 430 hectares of forest land in the country in recent years alone. The value of the timber on these plots and the value of these plots exceeds CZK 560 million. The company itself has already planted hundreds of thousands of trees. It is currently working intensively on the reconstruction of the timber production plant in Břasy, which covers an area of more than 30,000 m2.’
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NÁS
seznamzpravy.cz
A positive example of a responsible bond seller is the Czech company Wood Seeds from the Pilsen region with a share capital of 150 million crowns.
Seznam Zprávy published an interesting article about bonds, how to find a company that does it well and, conversely, what to look out for. We are pleased to be listed here as a positive example of bond sales and good management. We thank you!
How are we different from lower quality issuers?
CNB
We have a prospectus approved by the CNB
Transparent accounting
Publication of the annual financial statements in the commercial register.
Active since 2019
We can look back on several years of business activity.
Structure
We have a clear ownership structure, we issue bonds directly, we do not hide behind a subsidiary.
Ownership
We have a clear overview of the owners
Paid issues
We have already paid out 19 bond issues.
Real estate
We have forests, forest plots, sawmills, storage complexes, etc. We create real estate.
Reasonable interest rate
Our bonds have a reasonable increase in value - on average around 10 %. We are not gamblers and do not need money at any price.
150 000 000 CZK
We have a high share capital.
Indications of suspicious and very risky bonds:
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The company does not have a prospectus authorised by the CNB.
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The company does not publish annual accounts in the commercial register.
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It has a very short corporate history (this does not apply to some start-ups).
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Opaque ownership structure, the bonds are issued by a special purpose subsidiary.
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Anonymous owner.
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Small share capital of the firm/company.
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Owns no assets.
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Attracts high capital appreciation (15 per cent or more).
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No bond or interest payments or even interest debt.
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Brokers often do not know the details of the company's operations and are not trained and able to answer questions about the company's business, investments, profits and losses.