30. October 2020 | 13:14 CET
Amazon, Deutsche Post, dynaCERT - Properly shipped!
For investors who are always dealing with new trend topics, there is now the "FreightTech" corner from the technology sector. The term describes the technology to improve freight, shipping and logistics. The trend has been on the radar of venture capital companies for several years, and institutional investments are on the rise. "Online commerce" is now driving the headlines currently, which during the Covid 19 pandemic more than exceeded previous expectations. With the latest contact restrictions, people are doing much more from home - making logistics companies the absolute winners of the pandemic. Global consultants and experts in transportation, such as Roland Berger, are calling on established players to understand their environment better, to master the adaptation of current business models and challenges posed by changing market dynamics. We take a closer look...
time to read:
ISIN: CA26780A1084 , US0231351067 , DE0005552004
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Amazon - All years again!
At Amazon Inc. everything is running at full speed, the Company breaks one sales record after another but also has to deal with the consequences of the pandemic. The impact of the pandemic has been on warehousing, internal organization and above all, the logistics space. For example, the Company largely re-equipped its operations following Covid 19 precautions, but still, more than 19,000 workers got infected with the virus. The pressure on the Company is tremendous, but Jeff Bezos is beyond reproach. Despite roaring sales, there are restrictions, e.g. the closure of outdated locations or the currently slowed down delivery to customers, which is mostly not Amazon's fault, but the carrier's.
The Company's management of the upcoming Christmas shopping spree under Covid regulations and time pressures will be exciting to see. Amazon has worked long to avoid a repetition of the 2013 season, where due to delays some people were without presents on Christmas Day. The Company is now handling more deliveries in-house, and this year it moved its Prime Day marketing event - usually in July - to October so that buyers could place their orders early for the holidays.
According to the current listing, Amazon boss Bezos is by far the richest man in the world. He is said to have assets of almost USD 172 billion, and his wife also owns 25% of the Company. The Company has a market value of USD 1.6 trillion. We are curious whether this will be considerably more or whether we have already seen the peak with USD 3,530.00 perhaps on September 2nd.
Deutsche Post - The supplier of Santa Claus
Deutsche Post AG and its subsidiary, DHL Express, expect "previously unattained shipment volumes" in the coming weeks. The reason for this is the upcoming primary shopping season. DHL Express mainly transports urgent shipments and can usually rely on an internationally well-functioning network. The reason why this express service sees an increase in the volume of parcels is due to ongoing globalization and digitalization.
The results of these trends are a rapidly growing number of online marketplaces and shopping apps, which today's consumers can use to buy products from all over the world. This trend applies in particular to the coming popular mega shopping days "Black Friday" and "Cyber Monday" and the entire Christmas business. As a result, DHL Express expects an all-time high in global online trade; in the fiscal year 2020, parcel volumes had already risen by 35% as a result of e-commerce.
DHL Express is committed to enabling global trade, said John Pearson, CEO of DHL Express. "We ensure that products are delivered as quickly as possible and that Christmas gifts are delivered on time to recipients around the world." More than 100,000 employees in more than 220 countries and territories are working on the project, and DHL Express has hired more than 10,000 new employees worldwide to prepare for the "quiet time". Swiss Post is one of the DAX leaders and, since the March correction, a clear winner in the crisis. Its market capitalization currently stands at EUR 47 billion, and a dividend of EUR 1.22 was paid on top of that.
dynaCERT - A second tiger in the tank
dynaCERT Inc. was founded in 2001 and rode a wave of technological approaches that can reduce the emissions of diesel-powered vehicles. While zero-emission electric trucks are making headlines, millions of trucks still run on diesel. The Canadian Company has now invested 16 years of research and CAD 60 million in developing its carbon emission reduction technology. It is now on the threshold of scaling up and expanding its presence with two state-of-the-art offerings: telematics and the sale of carbon credits. Both of these are issues for the Company's green footprint.
In 2019, dynaCERT launched its first software product "HydraLitica" (TM), which monitors the fuel savings associated with "HydraGEN" (TM). Building on this platform, it recently announced additional telematics services such as fleet management, route planning, driver safety and load management. The Company's technology is currently undergoing trial runs in more than 400 vehicles, Executive Vice President Jean-Pierre Colin told the press. Now the extended environmental concept comes into play. As the industry offers more and more clean vehicle technologies, and regulators take action against pollution, a new business area is emerging, called "Carbon Credits". Tesla, for example, generated revenues of USD 428 million in the second quarter of 2020 from the sale of carbon redits, which means that a burdened P&L is supported by extraordinary profits - far removed from the original business.
dynaCERT will follow a similar path and will also earn "carbon credits" in addition to the technology solutions. The theoretical value currently has a capitalization of CAD 204 million at a remarkably low price of CAD 0.57 per share - this is not likely to be the case for long.