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Midway through the week, the market seemed to catch its breath for a moment, but that calm was short-lived. During the night from Tuesday to Wednesday, a further escalation in the Middle East was still clearly looming. The two-week delay provided some relief, which was immediately reflected in the market. However, it quickly felt fragile. It has since become clear that the ceasefire is anything but stable and that the situation could shift again at any moment.

Trump’s deadline is rapidly approaching. Yesterday, President Trump reiterated his warning that the United States will target Iranian energy infrastructure if Iran does not reopen the Strait of Hormuz by Wednesday night at 01:00 (UK time). As a result, short-term market sentiment is almost entirely dependent on what unfolds in the coming hours. That said, within our portfolio, we do not currently see any direct threats regardless of how the situation develops. Last week, markets experienced a sense of relief, with most equities posting modest gains. Investors appeared to catch their breath. Early in the week, there were signs that the situation in the Middle East might stabilize, partly driven by reports of a potential ceasefire. Although Iran later denied these claims, markets reacted positively. Oil prices declined and equities rallied broadly. The FTSE 100 even rose by 5.4%. However, that relief proved short-lived. As the week progressed, sentiment shifted again after Trump signaled his intention to increase pressure on Iran. Heading into the weekend, investors grew more cautious, oil prices moved higher, and markets adopted a wait-and-see stance. Notably, losses on European exchanges remained limited, suggesting that investors are not yet broadly de-risking. Over the weekend, communication remained inconsistent. Trump issued strong threats of escalation, only to shortly thereafter suggest that a deal remains possible. This leaves the situation highly uncertain, with the deadline rapidly approaching. Overall, markets are currently in a fragile equilibrium. Everything hinges on the outcome of this deadline. A de-escalation could reignite last week’s positive momentum, while escalation could quickly translate into higher oil prices and increased volatility. Although several key macroeconomic data releases are scheduled for the coming week—including U.S. inflation (CPI), the PCE index, and Federal Reserve minutes—market direction will in practice be driven primarily by developments in Iran. As long as this uncertainty persists, caution is likely to dominate. Encouragingly, and as reflected in our portfolio, global unrest has little to no impact on low-priced equities. In some cases, this uncertainty is already priced in, contributing to depressed valuations. At the same time, this resilience also reflects the stock selection decisions we have made in recent months. Marston’s Last week, we added Marston’s to the portfolio—a classic turnaround story that, in our view, is still underappreciated by the market. Under the leadership of new CEO Justin Platt, the company is undergoing a clear strategic repositioning, transforming the traditional pub into a modern, experience-driven venue with higher margins and improved scalability. What makes this stock particularly attractive is the combination of operational improvement and a very low valuation. The real estate portfolio represents substantial value, well above the current market capitalization, while debt levels are declining and cash flow is improving. The market still appears focused on the past, while early signs of recovery are already visible. Looking ahead, we see several potential catalysts. Further deleveraging towards a leverage ratio below 4x could pave the way for a dividend reinstatement, which may quickly shift sentiment. In addition, the new pub concepts are delivering strong returns, with rising revenue and margins per location. As rollout accelerates, this should become increasingly visible in the financials. Sharesunderten views Marston’s as a stock in the early stages of a turnaround—typically the phase where the greatest upside potential exists. We remain positive and believe the current valuation does not reflect the underlying value and recovery potential. MEKO MEKO has published the agenda for its Annual General Meeting on May 7, which largely confirms our existing view. The company is clearly in a transition phase, prioritizing balance sheet strengthening and operational improvements over direct shareholder returns. As expected, the board proposes no dividend for 2025, given the elevated debt position following a heavy investment phase. In addition, a new long-term incentive program for management and key employees has been proposed. This program is strongly performance-based, tied to metrics such as EBIT growth, earnings per share, and total shareholder return. Less encouraging is the explicit inclusion of sustainability targets, including CO₂ reduction goals. Furthermore, the board is seeking approval to issue new shares, potentially without pre-emptive rights. This creates flexibility for acquisitions or balance sheet strengthening, but also introduces the risk of dilution. The position is currently down only around 1% relative to our entry price. However, the AGM agenda does not provide sufficient confidence, and we have decided to fully exit the position while the loss remains limited. On to the next opportunity. Sunny Optical Sunny Optical reported its 2025 full-year results last week, broadly in line with expectations. There were no major surprises, as the company had already provided prior guidance. Revenue came in at approximately RMB 43 billion, while net profit increased by around 70% to roughly RMB 4.6 billion. What stands out is the company’s increasing ability to capitalize on growth segments beyond smartphones. In particular, automotive and high-end optical applications are contributing more significantly to profit growth. At the same time, the company continues to invest in technology and is positioning itself in markets driven by structural trends such as ADAS, AI, and sensor technology. The company also proposed a higher dividend, underlining management’s confidence in cash flow development. This further signals that underlying performance is stronger than current market sentiment suggests. While the initial market reaction was cautious, the stock moved higher towards the end of the week. This suggests that investors are beginning to reassess the results and that negative sentiment may be bottoming out. Fundamentally, our view remains unchanged. Sunny Optical continues to be a high-quality player transitioning towards structurally growing markets. Deceuninck Deceuninck published the agenda for its shareholder meeting at the end of April. There are no major surprises, but it does confirm the company’s current strategic direction. The board proposes a dividend of €0.09 per share—a modest increase that highlights stable cash flow generation. In addition, a new remuneration policy for 2026 is on the table, along with several board reappointments. Overall, this is a fairly standard AGM agenda without any major strategic changes. Our underlying view remains

You will undoubtedly have noticed that we have taken fewer new positions in recent weeks. This is no coincidence. Although more and more stocks are falling below the £10 threshold—effectively expanding our hunting ground—we are deliberately adopting a more cautious approach for now. The reason lies in the exceptional market volatility driven by geopolitical tensions and persistently high oil prices, which continue to unsettle investors. The past week was entirely dominated by escalating tensions between the United States and Iran. What began as a tense weekend evolved into a week marked by rapidly shifting deadlines, delays, and conflicting signals. For financial markets, this resulted in an unusually high level of uncertainty. Over the weekend, President Trump set the tone with a firm ultimatum. Iran was required to reopen the Strait of Hormuz, or Iranian energy facilities would be targeted within 48 hours. This immediately triggered panic in the oil market, with prices briefly surging toward $115 per barrel. However, Monday brought a notable shift. Trump suddenly spoke of “very good and productive” discussions and postponed the threatened attacks by five days. Markets reacted with relief, but that optimism proved short-lived. Iran denied that any talks were taking place at all, which quickly reintroduced doubt into the market. This uncertainty remained dominant throughout the rest of the week. Sentiment shifted multiple times, driven more by political statements than by fundamental developments. Oil prices fluctuated significantly, and investors became increasingly sensitive to every new headline. Meanwhile, tensions persisted in the background, with ongoing attacks and indications that other countries might become involved in the conflict. What makes the situation particularly complex is that the risk of escalation is not disappearing, but rather being postponed. Repeated delays in deadlines may indicate that preparations are continuing behind the scenes. Reports of potential additional military deployments by the United States reinforce this view. In such an environment, we believe it is essential to maintain discipline. This does not mean we are inactive—quite the opposite. We continue to monitor the market closely and actively search for opportunities. However, we are consciously more selective, only acting when we believe the risk-reward profile is clearly in our favor. We remain ready to act and have a watchlist of stocks firmly on our radar, so keep an eye on your inbox. Kudelski The Swiss company published its annual report last week, although it contained no major surprises. The key points were largely already known to the market and align with the picture we have previously outlined. Since our entry, the stock has risen by approximately 15%, confirming that sentiment around the company is beginning to improve. Despite this increase, we still see upside potential, particularly given the strong balance sheet, net cash position, and low valuation relative to underlying assets. At the same time, it is important to maintain discipline. Members with relatively large positions may consider taking partial profits. This does not alter our positive long-term view but helps maintain a balanced risk position within the portfolio. Grab Holdings We have seen a clear increase in activity around Grab Holdings over the past week, both strategically and in terms of capital allocation. The company announced a share buyback of up to $400 million within a relatively short timeframe, a strong signal that management has confidence in the company’s underlying value. Additionally, agreements have been reached with major financial institutions such as JPMorgan and Morgan Stanley, indicating further optimization of the capital structure and increased balance sheet flexibility. At the same time, an activist campaign surrounding Delivery Hero is unfolding in the background, with Grab indirectly involved. While this may create short-term noise, we view it as a potential catalyst. Such pressure can lead to sharper strategic decisions and more efficient capital allocation, ultimately benefiting shareholders. Fundamentally, the story remains intact. Grab holds strong market positions in Southeast Asia, benefits from structural growth in digital payments, mobility, and delivery services, and is making clear progress toward profitability. The combination of operational improvement and active capital management positions the stock attractively in our view. Sharesunderten therefore remains positive and continues to see significant upside potential. Auction Technology Group The company received court approval for its announced capital reduction, further optimizing the balance sheet and creating room for more efficient capital usage. While this may appear to be a technical step, it is strategically relevant as it increases flexibility toward shareholders. Market interest also remains evident. Analysts continue to highlight upside potential, driven by the combination of a relatively low valuation and the structural growth of online auction platforms. Previous takeover interest has also demonstrated that the company holds strategic value not yet fully reflected in the current share price. Fundamentally, our view remains unchanged. ATG has strong positions in both art and antiques auctions as well as industrial auctions, supported by a scalable platform and solid cash flows. Recent investments and integrations are temporarily weighing on margins but are laying the foundation for further profit growth in the coming years. Sharesunderten therefore remains positive and continues to see attractive upside potential. Rolls-Royce Rolls-Royce continues to benefit from a steady stream of positive news, particularly within its defence division. The company has secured multiple large contracts for Rolls-Royce Power Systems, increasing visibility on future revenues. This highlights its strategic positioning within defence and energy infrastructure—sectors currently benefiting from structurally higher investment levels. Additionally, Rolls-Royce confirmed that deliveries of new systems will ramp up from 2028 onwards and that production capacity is being expanded. This indicates a well-filled order book and strong confidence in long-term demand. At the same time, the company remains active in optimizing its capital structure, including through share buybacks. Although there are still critical voices regarding the strong share price performance over the past year, we continue to see a fundamentally compelling story. The combination of operational improvements, strong cash flow development, and exposure to defence makes Rolls-Royce attractively positioned. Sharesunderten therefore remains positive and continues to see upside potential, despite the strong run the stock has

We see financial markets heading into another week in which tensions may continue to rise. The combination of geopolitical uncertainty, rising energy prices, and increasing interest rates is putting particular pressure on bond markets. In the short term, there appears to be a temporary pause. President Trump postponed a potential attack on Iranian energy facilities by five days, following what he described as “very good and productive talks” with Iran. This temporarily reduced immediate fears of escalation in the Middle East and gave markets some brief relief. However, that calm appears fragile. Equities gave back part of their earlier gains after Iranian state media reported that no direct talks would take place. The confusion increased further when Trump later stated that there had indeed been contact with a senior Iranian official, though not with the Ayatollah. This highlights how uncertain and fluid the situation remains, and why markets continue to react to every new signal. At the same time, pressure on financial markets is building further, particularly through rising interest rates. The UK 10-year yield has recently climbed sharply toward 5%, levels that have historically been associated with increased stress in the financial system. Higher interest rates not only raise financing costs for governments and businesses but also directly weigh on equity valuations. Notably, equity markets have so far remained relatively calm. This creates a clear tension. While bonds and commodities are already pricing in a more challenging economic scenario, equity markets still seem to assume a controlled outcome. This discrepancy makes the market vulnerable. If the situation escalates further, a correction could accelerate. Sharesunderten is closely monitoring developments and will adjust where necessary. The coming week will revolve around several key macroeconomic indicators. In particular, the first PMI readings will provide insight into how companies are responding to recent turmoil, while inflation data from the UK and labour market figures from the US will guide expectations for central bank policy. In the current environment, these are not ‘ordinary’ data points but early indicators of the economic impact of geopolitical tensions. At the same time, we continue to closely monitor our portfolio and the broader market. It is precisely in these phases that opportunities arise. Falling prices mean that more and more stocks are dropping below the ten-pound threshold — and those are exactly the opportunities we target. This expands our investment universe and simply creates more “fish in the pond.” Our strategy therefore remains unchanged. We remain selective, closely track market developments, and are ready to act when valuations become attractive. In volatile markets, the focus is not only on risks but also on the opportunities that emerge from them. ME Group After weeks of uncertainty, during which the stock was suspended due to delayed annual results, ME Group ultimately surprised the market positively. The company released strong results yesterday morning, showing clear improvements in both revenue and margins. Revenue continued to grow, driven by strong performance in its laundry services, which have become an increasingly important pillar of the business model. Group revenue rose by 2.4% to £315.4 million, compared to £307.9 million a year earlier. At the same time, ME Group improved its EBITDA margin from 37.1% to 38.2%. This margin expansion, combined with revenue growth, resulted in further increases in profitability. Profit before tax came in at £78.2 million, compared to £73.4 million a year earlier — an increase of 6.5%. This underscores that economies of scale and operational efficiency are delivering results. What stands out in particular is the confidence shown by management. The dividend is increased by 9.5%, and the company is also launching a £18 million share buyback programme. This indicates robust cash flows and the ability to return capital to shareholders. Furthermore, management indicated that 2026 is expected to develop positively. The timing of the suspension could even be considered fortunate. The last trading day was 27 February, just one day before the Israeli-American attacks on Iran. While the broader market declined — with the FTSE 100 falling by as much as 10% — ME Group remained unchanged due to the suspension. Investors who do not yet hold a position may still consider doing so. Envipco Envipco featured prominently in the news last week. The company announced that it has become an exclusive supplier for a national retailer in the UK, while a major project in Portugal is also progressing. In addition, it announced an extraordinary general meeting and introduced a new CEO. This creates a clear combination of operational progress and strategic change. What stands out is that Envipco is increasingly securing these types of contracts, underlining its strong positioning in the rollout of deposit return systems across Europe. Governments are increasingly mandating such systems, driving structural demand for reverse vending machines. Envipco benefits not only from the sale of machines but also from long-term service contracts, which make the business model more stable and recurring over time. Overall, the core investment thesis remains unchanged. Envipco remains a typical growth company with strong structural tailwinds, although short-term volatility may persist. The recent contracts confirm that the company is gaining market share and further expanding its presence in Europe. We therefore continue to hold Envipco firmly within the portfolio.   Grafton Group Last week, Grafton announced a strategically important acquisition that aligns seamlessly with its long-term strategy. The company revealed it will acquire Mercaluz, a Spanish distributor of air conditioning and HVAC solutions (heating, ventilation, and air conditioning) with a strong position among professional installers. With this acquisition, Grafton takes another step in expanding its presence in the Iberian market. Following the earlier acquisition of Salvador Escoda, Mercaluz further strengthens that footprint. Both companies operate in the fast-growing HVAC segment, which benefits from structural trends such as the energy transition, climate regulation, and increasing demand for cooling and ventilation. Financially, the deal appears solid. With expected revenue of €150 million and operating profit of over €22 million, Grafton is acquiring a profitable and growing business. The €165 million purchase price suggests