September 14th, 2022 | 13:24 CEST
Aspermont, Allkem, K+S - Shares for the fast lane
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"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
Aspermont - Many arrows in the quiver
For 24 consecutive quarters, the media and FinTech house Aspermont from Perth, Australia, has recorded growth in its subscriber numbers. The digital transformation of the publisher of the oldest, continuously published mining magazines, Mining Journal (founded in 1835) and Mining Magazine (founded in 1909), can only be described as successful.
The radical realignment towards a digital media and service house included digital B2B publications in the raw materials sector as the first step. The second pillar was the creation of a XaaS platform (Everything-as-a-Service), through which companies can book various services based on an extensive business database.
Since this year, the Company has also successfully put its feelers out into the FinTech sector. With the launch of the financing platform "Blu Horseshoe" in cooperation with the Australian asset manager IPC and the Singalese roadshow specialist Spark Plus, qualified investors gain access to the market for placements on the Australian stock exchange ASX.
In the first month after its launch, the platform processed an average of two transactions per day. And the potential is enormous: there are currently around 2,200 companies listed on the ASX, and about 120 new issues are made each year. Given these facts, the stock appears to be very lowly valued, with a market capitalization of around AUD 56 million. The analysts at GBC see the fair valuation as about 5 times as high.
Allkem - Raw material prices set records
The Australian Allkem Group, known as "Orocobre " until the merger with Galaxy Resources Ltd, is one of the big beneficiaries of the energy and transport revolution. Without lithium as a raw material, this would not be possible.
Although there are now approaches to replacing lithium as a battery metal in the long term, leading experts agree that this will not be the case in the short or medium term. On the contrary, the German Federal Institute for Geosciences and Natural Resources (BGR) predicts a severe shortage of the raw material over the next 8 years (demand: up to 550,000 metric tons, maximum production from existing deposits: 358,000 metric tons).
For Allkem, these are fantastic prospects. The Company is already reporting record profits. The Australians were able to report earnings of USD 337.2 million for the 2021/2022 financial year. The Company cited extensive cost management as the main reason, in addition to higher market prices.
And Allkem continues to have ambitious goals: to triple production by 2026 and thus achieve a market share of around 10% in the global market. Currently, the Company ranks fifth among the world's largest lithium producers. The majority of analysts also rate the share as a buy. The experts at Crédit Suisse also expect Allkem to pay a dividend for the first time from 2023.
K+S - Analysts expect the price to jump
Kassel-based potash producer and fertilizer specialist K+S is one of the beneficiaries of Western sanctions against Russia. The limited supply and the further increase in demand caused the prices for potash salt to skyrocket. Despite sharply raised revenue and earnings forecasts, these good prospects have not been sufficiently reflected in the share price. Although the share price doubled between the end of January and April, it has now almost returned to its pre-war level.
Analysts believe the stock has significant upside potential across the board. The experts at Warburg recently raised the price target from EUR 17 to EUR 30. The analysts at JPMorgan even believe the share has a price potential of EUR 44.50. On average, the consensus of 16 analysts is for a price target of around EUR 30 over the next 12 months.
We live in turbulent times. In the long term, the fundamental key figures of companies almost always prevail. The fertilizer shortage will not be solved any time soon. Lithium will continue to grow in importance over the next few years. Digitization and access to financial markets will continue to advance. In terms of potential, Aspermont is certainly at the top of the trio.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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