07. April 2021 | 09:12 CET
Deutsche Telekom, RYU Apparel, TeamViewer - Do not philosophize for long - get it!
In one of his interviews, stock market veteran André Kostolany once said that he had a wish - knowing full well that it would never come true. Kostolany wished to understand the motives of all buyers and sellers one day. Because for him, short-term action and the reasons behind it were puzzling. There are many answers to the question of what is important or right in investing. We present three investments to you, which may correspond to your ideas.
time to read: 4 minutes by Carsten Mainitz
DEUTSCHE TELEKOM AG - Dividend hunters angry, good chances for traders
In recent weeks, the Deutsche Telekom share has outperformed the DAX. Anyone who now looks at the chart should not be irritated by yesterday's kink. That was merely the dividend discount. On April 1, the Bonn-based Company held its virtual shareholders' meeting. Many shareholders criticized the resolved dividend of EUR 0.60 as too low given the past year's profit growth. At EUR 0.60, the previous year's level was merely maintained. However, investors had hoped for a distribution of EUR 0.70, as was the case for the 2018 financial year.
Although the dividend hunters' faction is disgruntled, long-term dividend-focused investors should look at the forecasts for 2021 and 2022. For the next two years, analysts expect slight increases in sales and disproportionate increases in profits. The Group also issues target figures, but these contain several adjustments in many places and thus somewhat gloss over profitability.
Nevertheless, one thing is pretty certain: the profit increases should allow for a higher dividend payout next year. The analysts at Jeffries recently confirmed the price target for the share of EUR 20. From a chart perspective, the stock is definitely in an exciting situation. If the kink caused by the dividend payout is soon recovered, the next target is EUR 18.50.
RYU APPAREL INC - Growing fan base
The Canadian "Athleisure" Company reports impressive news almost every week. The manufacturer of modern, high-quality sportswear and functional clothing for everyday life recently announced a financing via convertible option bond in the amount of CAD 10 million with an annual interest rate of 7%. Given the current market capitalization of CAD 21 million, that is a considerable sum. Also remarkable is the conversion price of CAD 0.35, three times higher than the prevailing share price.
At the end of March, the Vancouver-based Company released two success stories. First, RYU entered into a 2-year sponsorship agreement with the NFL Alumni Academy ("Academy"), making RYU its official urban sportswear outfitter. The NFL Alumni Academy is an exclusive, world-class training program that trains players for the NFL. As part of the partnership agreement, all Academy players and coaches will exclusively wear RYU apparel during training and official Academy events. In addition, a social media campaign is planned. This partnership will surely significantly strengthen the brand's reach and reputation.
Then RYU drew attention with another small acquisition. RYU plans to acquire Kosan Travel Apparel, also based in Vancouver. Kosan is a provider of modern travel clothing for women. Its product range includes dresses, rain jackets and bags. In the past fiscal year, Kosan achieved just under CAD 1 million sales with a gross margin of 39%. For 100% of the shares, RYU issues 4 million shares. This means Kosan is valued at only half of its sales. But the deal is not only a bargain; it also makes strategic sense. In addition, industry-renowned CEO Joel Primus remains on board and will support the RYU team in the future.
The human factor is a significantly formative factor of the Company anyway. Not only in the external image with the slogan "Respect," equally the motivated company managers shape the DNA of the Company. Above all, it is the transformation specialist and implementer of innovative growth strategies, CEO Fazari, and some first-class individuals, such as COO Rob Blair who recently came on board, who want to move the Company forward. All have provided proof-of-concept multiple times in their professional lives, and all are convinced that RYU can become something great. But every Company, no matter how large and established, has started small. Currently, investors can still buy-in at a reasonable price.
TEAMVIEWER AG - Growth bought too dearly?
Founded in 2005 in Göppingen, Germany, the Company now employs around 800 people and is considered a technological showcase. TeamViewer is one of the world's leading providers of so-called remote connectivity solutions. The software-based solutions enable remote access, support, control, and collaboration functions on computers. The "TeamViewer" solution has already been activated on more than two billion devices.
In September 2019, the Company went public at a share price of EUR 26.25. What followed was an upward movement to the Corona Crisis in the range of almost EUR 55. In February, after a significant recovery rally, the share certificates were again quoted in the EUR 48 range. Since then, the value of the shares has declined significantly. At current prices of EUR 37, the Company is still valued at an impressive EUR 7.4 billion. But what were the reasons for the price decline? First of all, it is perfectly logical and sensible for a company to increase advertising and marketing activities to drive organic growth and become better known.
Likewise, acquisitions can also be an important step in expansion. Central to both options, however, is the price or the price-benefit ratio. In the case of TeamViewer, the decline in the share price is related to sponsorship contracts as the main shirt sponsor of the English soccer club Manchester United and with Mercedes for Formula 1 and Formula E. The price of TeamViewer's shares was also lower than in the previous year. TeamViewer lowered its margin forecasts by 6 percentage points to 49% - 51% due to the high expenses, which means that the EBITDA margin is still at a high level.
Following sales of around EUR 460 million in the past fiscal year, this figure is expected to rise to around EUR 1 billion by 2023. From 2025, the Company expects additional revenues of EUR 150 million per year from marketing activities. Analysts have a positive overall view of the share and formulate average price targets of around EUR 52. Following the price setback, this opens up an upside potential of 40% for investors.