07. December 2020 | 09:15 CET
BYD, dynaCERT, Lufthansa - Shares to take off!
If you look around at the moment, it is difficult to imagine that lockdown, travel ban or border closings could soon be over. However, as stock market wisdom has taught us, the stock market, as is well known, runs ahead of the economy. That's why airlines, tour operators and other cyclical stocks are rising. The oil price has also more than doubled since its April low. There is still time to secure the fallen angels.
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ISIN: CA26780A1084 , DE0008232125 , CNE100000296
dynaCERT - Normality comes back
It will undoubtedly take some time until the Corona ghost has vanished, and people will focus on topics like climate change again. However, the problem remains that combustion engines emit too much pollutant and alternatives are needed urgently. Here is precisely where the Canadian Company dynaCERT Inc. comes in. The goal of the Company is to reduce the emission of pollutants from diesel-powered vehicles. To this end, retrofittable units for diesel engines have been developed that use hydrogen as a catalyst. Both CO2 emissions and fuel consumption are reduced by up to 20% at peak times.
dynaCERT's customers are primarily fleet operators. Their trucks, which usually travel 24 hours on the North American highways, are to be equipped with the newly developed kits. With the specially programmed software "HydraLitica" it is possible to monitor the fuel savings. Building on this platform, the Company recently announced additional features such as fleet management, route planning, driver safety and load management. The Company's technology is currently being used in trial runs in more than 400 vehicles.
The way is clear
The technology that dynaCERT develops is right on target. It is, therefore, all the more surprising that after a high of EUR 0.60, the share price fell back to the current EUR 0.35. The reason is that the management had issued warrants with a fixed subscription price during the capital rounds last years. These warrats with a exercise price of CAD 0.35 came on the market in the previous weeks and pushed the price of the dynaCERT share to below CAD 0.50. The deadline for exercising the warrants was 01.12.2020. Thus, the way should be free for the continued positive development of the Company.
Lufthansa - Off to the South
Despite the still valid Corona regulations, the demand for flights over Christmas and New Year's Eve is increasing. According to company reports, bookings for Tenerife and Fuerteventura have tripled. Mexico and South Africa are also experiencing disproportionately high demand, with bookings for these destinations more than quadrupling. Nevertheless, it remains uncertain not only for the German figurehead Lufthansa but for the entire aviation industry. The question of when air traffic will return to its normal path is currently in the stars. And whether flying for business customers will ever again come close to the pre-corona level is more than questionable after the successes of Zoom & Co.
The crane becomes slimmer
The state has already paid EUR 8.0 billion to this German showcase airline. Of this amount, EUR 3.0 billion has already flown due to the Corona failures. The figures for the third quarter also show Lufthansa's high burn rate. A loss of EUR 5.6 billion was reported here. To stop the burning of money, in addition to the sale of the European business of the catering subsidiary LSG, a total of 29,000 jobs are to be cut by year-end. Of these, approximately 20,000 jobs are to be shed abroad, and 10,000 employees in Germany will have to vacate their chairs in 2021.
Attractive in the long term
After it was announced that a vaccine would soon be available to the general public, the Lufthansa share price began a flight from just under EUR 7.00 to EUR 11.00. After that, however, the share price consolidated again to below EUR 10.00. The share price is likely to remain volatile over the next few weeks and will depend on developments concerning the corona pandemic. In the long term, however, the crane should regain its wings.
Consolidation as an opportunity
After a new all-time high at EUR 22.40, Chinese carmaker BYD went on a consolidation course last week and only stopped at EUR 18 after a 20% slide in the support line. However, fundamental data is still correct. For example, the Company, in which entrepreneurial legend Warren Buffett also holds a stake, sold almost 54,000 vehicles in November, an increase of 30.6% over the previous year. The electric and hybrid models accounted for 26,690 of these sales, an increase of a whopping 138% compared to November 2019. Chart-wise, a further slide into the EUR 14 range is possible. In the long term, BYD will establish itself as one of the largest electric carmakers in the world.