09. March 2021 | 07:25 CET
BYD, wallstreet:online, Xiaomi - This is a huge opportunity!
The real economies have been in a deep recession since the outbreak of the Coronavirus. In contrast, the stock market, especially technology stocks, celebrated one high after another. Now, the beneficiaries of the crisis, such as Amazon and Zoom, are correcting more strongly for the first time. Shares from booming sectors such as hydrogen or electromobility are suffering disproportionately. Did the bubble start to burst now, or was this just a correction in the upward trend, which will then lead to several new highs again?
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ISIN: CNE100000296 , DE000A2GS609 , KYG9830T1067
wallstreet:online - The hunt for the top
Online brokers were also clearly among the winners of the week-long lockdowns. Since the Corona Crash, stock prices have gone steeply upwards. As a result, younger people, in particular, became interested in the stock market. Almost 600,000 young adults ventured into the stock market, increasing nearly 70% on the previous year. In addition, according to a study by the German Stock Institute, more than 12 million Germans were invested in shares or funds.
These high figures were comparable to the times of the New Market in the early 2000s. A profiteer of this development is the Smartbroker, founded only in December 2019 and belonging to the wallstreet:online Group. This now puts the preliminary figures for the full year 2020 on the table, which benefited from the greatly accelerated digitization and increased advertising revenue in the portal business. Revenues increased by 25% to EUR 28 million. For the first time, the capitals prepared consolidated financial statements on an adjusted EBITDA basis, the operating profit was EUR 4.3 million. In the long term, growth is to be driven primarily by the new Smartbroker business segment, which is intended to transform the Company into an online broker with an integrated financial community.
The unique selling proposition, at least in Europe, is now to be achieved with top-class reinforcement. None other than former Comdirect board member Matthias Hach has risen to become the new head of wallstreet:online. His goal is clearly formulated. Hach wants to attack established providers with the Smartbroker. The number of customer deposits is to increase from 80,000 to 200,000 in the current year. With the programming of a new smartphone app and the even stronger linking of broker features in the in-house sites such as wallstreet-online.de, FinanzNachrichten.de or ariva.de, both trading activity and portfolios should be significantly increased. In addition, the new man at the helm promises that prices will remain stable and continue to cost EUR 4.00 per order or less. Thus, the Berliners do not come close to the low costs of Neobroker, but they are currently cheaper than the established peer group.
In the course of the general market correction, the wallstreet:online share was dragged down. After the all-time high in mid-February at EUR 29.70, the price was yesterday at EUR 18.50. In this area, there is a striking support zone. Should this be broken, a short-term slide to EUR 15.00 would be possible. In the long term, this Company offers high growth potential due to cross-selling effects.
BYD - Hard hit
The Chinese electric vehicle Company BYD also lost a lot of ground. After reaching highs of just under EUR 29.50, the Company, in which Warren Buffett also holds a stake with his investment vehicle Berkshire Hathaway, is now back at EUR 19.00. From a chart perspective, the next resistance zone is at EUR 18.30. After that, a further drop to a level between EUR 15.00 and EUR 16.00 would be possible. Fundamentally, BYD was able to set mixed signals with its January sales figures.
BYD sold 20,178 electric vehicles and plug-in hybrids, 182.88% more than in the same month last year. This included 14,463 e-cars (+181.16%) and 5,408 plug-in hybrids (+188.27%) in the passenger car segment. In addition, there were 307 e-commercial vehicles (+171.68%). Compared to the strong December 2020, however, all of the aforementioned categories were in the red. Here, just under 26% fewer e-cars were sold, and as much as 33.3% fewer plug-in hybrids. In total, the "Build Your Dream" Company aims to have 400,000 electric cars roll over the counter in the full year. From a chart perspective, we would advise against investment in BYD at the moment. Only when the resistance zone between EUR 22.50 and EUR 23.00 is overcome would a new buy signal be generated.
Xiaomi - The pressure grows
The trade war between the great powers of China and the United States of America continues. After the technology Company Xiaomi was blacklisted by the US for alleged links to the Chinese military, in addition to Huawei, the Company is now defending itself. Xiaomi has so far always denied any ties to the Chinese military. It said its products and services were purely for civilian and commercial use. Now the Company has sued the US Department of Treasury and Defense. The goal is to obtain an injunction suspending the imposed sanctions, allowing US investors to buy the Chinese technology Company's securities again.
Yesterday saw another sharp blow to the Chinese Company. Thus, the index provider FTSE Russell wants to remove the Chinese smartphone manufacturer from its global and Chinese indices at the end of the week. During the ongoing correction phase, this is a hard blow in chart terms. The title lost more than 6% before the start of trading in the US yesterday and is quoted at EUR 12.10. The EUR 12.00 mark should be held at all costs; a break-through would result in more considerable price losses. We advise caution!