01. November 2021 | 11:15 CET
BioNTech, Memiontec, TeamViewer - Which high flyers still have potential?
High flyers are companies that establish themselves very quickly in a market or shares that increase in value very quickly. As an investor, one dreams of such investments. A stock that gains more than 100% in value within months is often found in extreme situations and when hypes arise. At some point, the situation normalizes, or the hype ends because not enough investors jump on the bandwagon. A drastic consolidation often follows that. Today, we analyze three companies whose shares have gained at least 200% since the Corona pandemic and look at their future potential.
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ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , Memiontec Holdings Limited | SGXE56008290 , TEAMVIEWER AG INH O.N. | DE000A2YN900
BioNTech - Emergency approval in the USA for 5-11 year olds
The Corona vaccine began the meteoric rise of Mainz-based BioNTech. As the first approved vaccine manufacturer, the Company could hardly escape orders. In addition, sales of the vaccine brought in so much money that the Company could expand its research in other areas, such as cancer research. The new mRNA method offers many more possibilities and further fired investors' imaginations. In addition, failures by competitors such as CureVac ultimately strengthened the Company's market position.
At the beginning of August, the Company had a market capitalization of more than USD 100 billion, with a share price of EUR 395. The share then went into a consolidation, which pushed the price down to EUR 198.60. The reasons for this are complex. On the one hand, the competition has caught up, whether it is the "miracle pill" from Merck or the inactivated vaccine from Valneva, which has come increasingly into focus again since the Kimmich interview. Furthermore, death rates have declined significantly since the vaccines. In addition, the Pfizer chief said that one could return to normality in a year.
All of these points, of course, could mean falling sales figures in the future. However, the emergency approval of the vaccine for children ages 5-11 in the US by the FDA last Friday will open up new patient groups. Booster vaccinations could also be expanded in the winter if the situation develops accordingly. In addition, the Company has a whole range of exciting research that, if successful, could bring the next blockbuster. The share is currently trading at EUR 240.40. Despite the counter-reaction, the downward trend is still intact.
Memiontec - Future market water
Memiontec has been listed on the Singapore Exchange (SGX) since March 2020 and has made a big jump since August this year. At the beginning of August, the stock was still trading at 0.24 Singapore dollars (SGD) to pick up to SGD 0.90 by October 12. Founded by Tay Kiat Seng, who is still the CEO, the Company has offered cost-effective water treatment solutions because of its membrane technology. In this regard, the Company was responsible for the design, procurement and construction of the projects.
To become a co-owner of water treatment plants, Tay changed its business strategy to avoid the fluctuations of the project business. In 2016, the breakthrough came through a cooperation with a state-owned company in Indonesia. These BOOT and TOOT projects will generate recurring revenue on an ongoing basis for up to 25 years. The Company owns three of these major projects, with two already in production and the third expected to start in the first quarter of 2022.
The Company is primarily active in Singapore, Indonesia and China. In Singapore, water demand is expected to double in the coming decades, and in Indonesia, 70% of the population lacks access to clean water. So the potential is huge. Wastewater management will become increasingly important in the coming years. The Company already boasts customers such as Nike, Pepsico and Micron. The stock has consolidated to SGD 0.70. The uptrend is intact, and it even pays a dividend.
TeamViewer - New all-time lows
TeamViewer was a winner of the Corona Crisis. The remote control software and videoconferencing Company served everything that the home office had made urgent. The stock took off from EUR 22.30 to EUR 54.86. The high was reached on July 9, 2020. No sooner had the all-time high been reached than the Company took over Ubimax to grow in the areas of the Internet of Things and augmented reality. The purchase price of EUR 136.5 million was largely paid in cash. Since then, the stock has successively slid further and further down to EUR 12.78 on October 25 of this year.
The Company wants to turn the big wheel and increase its visibility. So on March 19, 2021, it signed a 5-year contract as a shirt sponsor with Manchester United, which experts believe will cost around EUR 50 million per season. Whether this will pay off on the bottom line remains to be seen. Jersey sales have increased significantly since the signing of Cristiano Ronaldo. The quarterly figures for the third quarter were disappointing, as were the previous ones. There was a profit warning as margins fell significantly. As a result, the contract of the Chief Financial Officer was not renewed.
Whether CEO Steil can hold on much longer depends partly on private equity investor Permira, which took the Company public. TeamViewer has everything it needs for future jobs and is working with Google on solutions in augmented reality. Management needs to draw the right conclusions from its failures and focus on its core business. The stock is currently trading at EUR 12.90, just above its all-time low. It now looks like a bottoming out. However, one should currently wait and see.
All three companies still have long-term potential. BioNTech has an extensive development pipeline, and the Corona vaccine has laid the groundwork for future mRNA drugs. Memiontec is growing slowly and steadily. Water will become a scarce commodity in the coming years, making the Company's expertise all the more important. TeamViewer has homegrown problems. They have spent a lot of money and need to go back to the basics that made the Company successful.