09. March 2021 | 07:15 CET
BYD, BioNTech, Kleos Space: A new trend starts here
If you want to be successful on the stock market, you have to back those shares with prospects. Although an intact upward trend suggests that a story will be well received on the market, the fall height also increases with the price. Investors have recently had to experience this pain, especially with shares in the field of electromobility or hydrogen. Even vaccine hopefuls such as BioNTech have lost ground. Let us show you how the trend stocks are faring and which sector is only at the beginning of its trend!
time to read: 3 minutes by Nico Popp
BYD and the fear of the future
BYD's stock lost over 20% last month. The Chinese electric carmaker has recently had to contend with a considerable downturn. With its battery cell production and access to numerous critical raw materials in China, it is perfectly positioned to profit from the trend. But after a 275% return in one year, every share is ripe for a correction.
The current inflationary trends are weighing on companies with a high growth perspective in particular. The reason: future profits could be lower as a result of inflation. Prices for raw materials in trend industries such as electromobility are also more likely to rise. This upsets the growth models, as increasing costs lead either to lower margins or higher prices. While BYD remains promising for the future, the stock is currently in correction mode - investors should not hope for better times but actively manage their trend stock portfolio.
BioNTech: Good products, weakening share price
Investors in BioNTech may also see a reason to act: The share recently dropped significantly and lost around 17% in one month. Over the year, the return is currently "only" 145% - the former trend value has become a reality. Yet fundamentally, things do not look bad for the Company from Mainz: The Corona vaccine from BioNTech and Pfizer is proving to be effective and suitable for preventing transmission of the virus. Epidemiologically, this is good news. It is not without reason that government advisors in Germany have recently been calling for younger people with many contacts to be vaccinated with BioNTech. The general competence around the mRNA process also speaks for the Company. The products are good, but the share is currently no longer a trend value.
Kleos Space: Satellites as data collectors
So, where should speculative investors move to? An attractive alternative is the share of Kleos Space. The stock has been stable for months and seems to have found a solid base. These are good conditions for a sustained rise in the share price, and this is all the more true given the extremely exciting investment story. Kleos Space operates satellites, collects data with them and sells them to companies and government organizations. Four satellites were launched into orbit at the end of last year. This summer and next December, more satellites will go into orbit, the Company announced yesterday.
With the help of a global network of satellites, Kleos Space wants to analyze data, such as radio activity, and make it available to its customers. In this way, for example, piracy or even illegal border crossings and smuggling are to be effectively prevented. Kleos Space also wants to make its data available to NGOs. Even with the satellites currently orbiting the earth, it is possible to monitor prominent regions. For this reason, Kleos Space has already signed twenty contracts and letters of intent with customers. These include the military, government agencies and companies.
Analysts see a 90% chance
Kleos Space itself has little competition outside the United States, citing high entry barriers for the space business. On the one hand, satellites must be developed and data collected processed, but on the other hand, entering the market is very costly. Kleos Space has successfully raised capital in the past and is already known to professional investors. Since a data subscription is expected to cost between EUR 60,000 and EUR 300,000, the Company, listed in Australia and Germany and headquartered in Luxembourg, expects to see rapidly increasing cash flows. Kleos Space is an exciting investment story. If the business takes off as planned, the Company can operate without much competition and make money for a long time. Analysts at First Berlin see a potential of up to AUD 1.15. Currently, the share is trading at AUD 0.60. Those who want to be in on the next trend early should analyze the value thoroughly and consider an entry.