Close menu




June 25th, 2021 | 11:29 CEST

Commerzbank, Theta Gold Mines, Corestate Capital - Watch out: the hunt has begun!

  • Gold
Photo credits: pixabay.com

The value and the price paid for a share on the stock exchange can be thought of in very different ways. If there is too big a discrepancy here, the hour strikes for wise investors. Undervaluation or overvaluation is always in the eye of the beholder. Time will tell whether it was a "value" buy or a "value trap." We pick up the trail of three exciting investments. Where are opportunities lurking, and where are the dangers?

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: COMMERZBANK AG | DE000CBK1001 , THETA GOLD MINES | AU0000035701 , CORESTATE CAPITAL HLDG | LU1296758029

Table of contents:


    COMMERZBANK AG - Things are happening

    From the start of the year to the beginning of June, the Commerzbank share rose by an impressive 30%. However, the recent ruling by the Federal Court of Justice (BGH) on the reimbursement of bank charges then had a negative impact. At a current price of EUR 6.18, investors are still up an impressive 20% this year. The Federal Court of Justice ruling will lead to a provision "in the mid-double-digit million range," which will be booked in the second quarter of 2021, the institute said.

    Nevertheless, the Group maintained a positive outlook for 2021. It said it would increase full-year earnings compared with the previous year. The overall situation is brightening for the Company anyway. The US monetary watchdogs signaled the interest rate turnaround as early as 2023 and thus earlier than previously assumed. Commerzbank also appears to be mastering further milestones in the transformation process, and the stock could soon hold even more potential. It is an open secret that the shares are trading well below book value and at significant discounts compared to European and especially US counterparts. The explanation for the discrepancy simply lies in COBA's modest (equity) profitability.

    With a series of cost savings, the institute wants to turn the tide. By the end of 2024, the number of full-time positions across the Group will fall from around 39,500 to 32,000. In Germany, the branch network will be almost halved to 450 locations. In addition, the Group is giving up 15 sites abroad. As a result, this should trim costs by around 20% in 2024. If all this succeeds, the share definitely has further potential.

    THETA GOLD MINES LIMITED - Very favorably valued

    Theta Gold Mines is an Australian-based gold mining company. The Company's goal is to consolidate several South African mining projects and bring historic mines back into production with a very advantageous cost position. The cost of production per ounce is expected to be about half of the current gold price. Theta Gold owns 43 historic mines and will bring 3 underground mines into production in a first cut. From this, 160,000 ounces of gold is expected to be generated as output, starting in 2022.

    The Company owns over 62,000 hectares of gold mining rights covering most of the Eastern Transvaal Gold Fields, a highly productive gold belt, about 350 km east of Johannesburg. This trend is comparable to the Carlin Trend in the US state of Nevada, which produces about 16% of global gold production annually. Another focus is on open-pit production at high grade, near-surface deposits such as Pilgrims Rest Gold Fields and Sabie Gold Fields. Here, the annual production of over 350,000 ounces of gold per year is envisaged in the medium term.

    In total, the JORC resource of all properties comprises around 6 million ounces of gold. This is a substantial figure which, given the low expected production costs, suggests a high level of economic viability. The US analysts at Zacks Small Cap Research also see it that way and formulate a price target of USD 0.69 for the share certificates. Because of the current price of AUD 0.20, this is a bargain. The stock market value of the Company is AUD 100 million. The stock is traded on the Nasdaq OTCQX Best Market and Frankfurt. Investors really can not go far wrong with the stock.

    CORESTATE CAPITAL HOLDING SA - The lowest level since IPO

    CORESTATE Capital Holding SA is an investment manager and co-investor for real estate assets under management of EUR 28 billion. The Luxembourg-based Company offers a wide range of services, including investment and fund management and real estate management services from a single source. Its clients are institutional investors and high-net-worth individuals. The Group has 42 additional offices, and the SDAX-listed Company's team totals more than 800 employees.

    The Company is currently trading just above EUR 11, its lowest level since the IPO in 2017. More than EUR 50 per share was called on the trading floor in 2017 and early 2018. The current market capitalization of EUR 380 million is significantly below the equity reported as of Q1 of EUR 676 million with total assets of EUR 1.45 billion. What is striking is the high goodwill of EUR 578 million, which is about 40% of total assets and 86% of equity! If you look at the latest quarterly figures, you get more questions than answers. The Company suffered a Q1 loss of EUR 14.5 million after a profit of EUR 8.8 million in the previous year. Adjusted EBITDA barely made it into the black at EUR 0.2 million (previous year: EUR 20.9 million). Nevertheless, the Company is sticking to its annual targets.

    The Luxembourg-based company is forecasting total sales of between EUR 235 million and EUR 260 million. Adjusted EBITDA is expected to be between EUR 90 million and EUR 115 million. Unexpectedly, CFO Lars Schnidrig recently left the Company at his request. It is unknown whether there was friction in the course of the change in the shareholder structure or whether it is a matter of strategic orientation. The acquisition of the FÜRST Project reported on June 11 with a financing volume of EUR 1.02 billion, and thus one of the largest real estate transactions of the year, did not help the share. On average, analysts believe the stock has a price potential of EUR 23. As a result, the share is a potential doubler. Given the loss in Q1, achieving the annual targets is quite sporty in our opinion, and the balance sheet simply raises too many questions for our taste. There is nothing wrong with standing on the sidelines.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    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.

    About the author



    Related comments:

    Commented by Stefan Feulner on May 18th, 2022 | 11:37 CEST

    Barrick Gold, Desert Gold, Newmont - Golden times

    • Gold

    The situation with gold is more than paradoxical at the moment. On the one hand, the Ukraine war is raging with the threat of spreading to other countries. On top of that, inflation rates are jumping to levels the world has not seen in more than 30 years. As the icing on the cake, the Zero-Covid lockdowns in China are hampering supply chains that are already broken. Gold should therefore explode. However, the reality is different. The precious yellow metal is currently struggling to reach the USD 1,800 per ounce mark. However, the crisis currency is likely to prevail in the long term and pave its way above new highs.

    Read

    Commented by Fabian Lorenz on May 12th, 2022 | 11:12 CEST

    BioNTech, BYD and Desert Gold: Shares for the rebound

    • Gold
    • Electromobility
    • Biotechnology

    Is the rebound coming? After the heavy price losses of recent days and weeks, the market seems ripe for a countermovement. However, this would require a little more volume in the market. But then, especially companies that have not disappointed operationally should profit. BioNTech, for example, belongs to this group. The Company has published convincing figures, and analysts see up to 50% price potential. BYD's share price should also pick up speed again. Finally, the rapid shift to electric pureplay seems to be succeeding and HSBC has raised the price target. Gold was not a safe haven in the current correction. But it is worth looking at bombed-out stocks here as well. Desert Gold Ventures is one of them. The explorer has started a new drill program and secured financing.

    Read

    Commented by Armin Schulz on May 6th, 2022 | 10:43 CEST

    Barrick Gold, Edgemont Gold, Rio Tinto - Are gold stocks taking off again?

    • Gold

    With the start of the Ukraine crisis, the gold price skyrocketed, but since March 8, we find ourselves in a consolidation. The 200-day line is currently holding, and it could go up again from here. But let's look at the reasons for the weakness in the gold price. On the one hand, there is the strong dollar, which naturally puts pressure on the gold price, and on the other hand, bond yields in the US are climbing again. After the FED announced on May 4 that it would not raise interest rates by more than 0.5 percentage points, which was originally feared, the gold price jumped again. Demand for physical gold remains high. We look at three companies in the gold sector.

    Read