July 21st, 2022 | 11:37 CEST
Allianz, Pathfinder Ventures, K+S AG - Hot stocks for summer
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"[...] In addition to campsite fees, Pathfinder Ventures has put itself in a position to offer all of these sought-after camping solutions. The only thing they don't sell is the RV itself. [...]" Joe Bleackley, CEO, Pathfinder Ventures Inc.
Pathfinder Ventures - Expansion underway
At the latest, since the Corona pandemic, camping vacations have finally conquered the mass market. But camping has changed fundamentally in recent years. Whereas in the past, it was more the domain of the less well-off, who would spend the night inexpensively on sparsely equipped sites with a tent under their arm, modern camping is now more like a competition for the most expensive and best-equipped mobiles. These homes can be had for a new price, starting at around EUR 25,000.
To be able to use all the accessories of the mobile home says the CEO of the Canadian campsite provider Pathfinder Ventures in an interview, customers need a modern campground with modern infrastructure (electricity, sewage and water connections). Other cost factors for customers include storage and maintenance of the caravan or motorhome. The listed company offers all this at its three RV resorts and campgrounds under the "Pathfinder Camp Resorts" brand in Agassiz-Harrison, Fort Langley and Parksville in British Columbia on the west coast of Canada.
In the process, the sails were hoisted on expansion for the next few years. Many campground operators in Canada and the US are family businesses, and the succession plan is vacant. There is just as much potential in taking over and converting ageing campsites as there is in developing digital solutions for service and marketing. Another growth area is the development and construction of new camps. In the medium term, it is also conceivable to include franchisees in the Pathfinder network.
The business model is taking hold as is shown by the booking figures, which were already up 36% on the same period last year before the summer season. Speaking of numbers, a new CFO could be introduced with Jennifer Lee, while the predecessor Darren Prins is increasingly moving into the growing project business. The exciting company, which is also traded in Frankfurt, has a market capitalization of EUR 3.23 million and, in addition to growth, still has considerable room for improvement in terms of its share price.
K+S AG - Exciting again
In March, the sanctions against Russia severely reduced the supply of fertilizers, especially potash. As a result, about 34% of global production was lost due to the sanctions against Uralkali and Belaruskali. Western producers such as the Canadian company Nutrien and the US Mosaic Group had to meet demand. The fifth largest potash producer, K+S, also benefited. In addition to a rapidly rising share price from around EUR 20 to EUR 36.45 in mid-April, forecasts for 2022 were also adjusted significantly upward.
The Kassel-based company now expects EBITDA of between EUR 1.6 billion and EUR 1.9 billion. Management sees a continued favorable market environment in the Agriculture customer segment and expects a substantial increase in the average price of the product portfolio. Sales volumes are also expected to increase slightly once again. Against this background, adjusted free cash flow should also rise sharply to between EUR 600 million and EUR 800 million.
After the overheating of the potash market subsided, the base price fell by about 30% in the following month, and natural gas, which is enormously important for production, also entered the correction, and the K+S share was hit disproportionately, with the result that the entire gains disappeared into thin air due to the Ukraine conflict. With the break of the support at EUR 18.90 and the marking of a new low for the year, the performance could even move significantly into the red zone. The next striking support is only at EUR 16.55 again, the high of last year.
After the overheating of the potash market subsided, the base price fell by about 30% in the following month. Natural gas, which is enormously important for production, also entered the correction. The K+S share was hit disproportionately, resulting in the entire gains disappearing into thin air due to the Ukraine conflict. With the break of the support at EUR 18.90 and the marking of a new low for the year, the performance could even move significantly into the red zone. The next striking support is only at EUR 16.55 again, the high of last year.
Allianz - At a critical point
The shareholders of Munich-based insurance group Allianz are far from envious. The DAX title has lost almost 28% since the beginning of February and thus performed significantly worse than the DAX benchmark barometer. After EUR 232.00, it currently declined to EUR 173.60. Here, the share is running into a critical area. If the EUR 170 mark is sustainably breached, there is a threat of a setback to the EUR 150.00 mark. On the upside, the break of the resistance at EUR 184.36 could provide a brightening chart picture.
Several analysts have now spoken out. The private bank Berenberg, for example, continues to rate the share as a "buy" and reiterated its price target of EUR 264.00. In contrast, the British investment bank Barclays lowered its price target for Allianz SE from EUR 225 to EUR 211 and left its rating at "equal weight".
It is vacation time, and there is chaos at the airports. Camping offers itself as an alternative. Campsite operator Pathfinder Ventures is expanding strongly and has a promising business model. Allianz and K+S, on the other hand, are facing important tests.
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