14. August 2020 | 08:07 CET
EXMceuticals, Nebelhornbahn, Syzygy - where entry opportunities now exist
While the share prices of a variety of large companies have already returned to pre-Covid-19 price levels, the shares of small and mid-caps are often still trading at significantly lower levels. Here, there may be opportunities with price potential that can offer attractive returns for investors. It may therefore be worthwhile to take a closer look at some business models and companies.
time to read: 3 minutes by Mario Hose
With focus on cannabis
EXMceuticals describes itself as a medical cannabis company that firmly believes in the potential health and wellness benefits of hemp and cannabis. The company is an emerging player in the market with high ambitions and the goal to become a major producer of high quality EU GMP cannabis and hemp ingredients. According to its own statements, the management is building an extraction and refining facility of the highest standards near Lisbon, Portugal, which will be dedicated to the production of cannabis material with API quality active pharmaceutical ingredients. The company is focused on providing the right ingredients for customers in the medical and wellness industry.
EXMceuticals recently announced that loans totaling CAD 4,605,171 were converted into 23,025,855 new shares of the company. The conversion price was CAD 0.20 per share. All shares are subject to a four-month hold period expiring on November 25, 2020. According to the announcement, Jonathan Summers, CEO of the Company, also took advantage of the loan conversion offer and received 11,270,855 shares, representing approximately 16.4% of the company.
Strengthening of market position and business model
The Nebelhornbahn-AG was founded in 1927 and the company operates the cable car of the same name on the summit of the Nebelhorn in the Allgäu Alps. The Nebelhornbahn has been in operation since 1930 and has been renewed and renovated several times since then. The core business of the Nebelhornbahn-AG is the operation of the Nebelhorn mountain railway as well as the associated catering businesses in Oberstdorf. The Nebelhorn is a popular excursion destination and offers a wide range of hiking, touring and climbing opportunities in summer and a large, snow-covered ski area in winter. The region in the Allgäuer Alps stands out as the highest ski area in the Allgäu, with the mountain railway carrying more than 450,000 guests to the Nebelhorn every year.
Since autumn 2019, the current renewal of the Nebenhornbahn is already underway and the first construction measures for the new main lift have been successfully completed. Following the decision in May 2020 to accelerate the implementation of this major project, construction activities were also intensified in the current financial year. Starting in the 2021/2022 financial year, the analysts at GBC Research expect regular business operations to resume during the summer and winter seasons. For this financial period, they forecast sales revenues of EUR 13.23 million and a net profit of EUR 0.58 million. Based on their forecasts for the current financial year and subsequent years, the experts have lowered the price target for Nebelhornbahn-AG from EUR 50.02 to EUR 45.60 per share.
Sales and earnings forecast raised
Founded in 1995, the SYZYGY Group is one of the leading consulting and implementation partners for the transformation in marketing and sales. SYZYGY creates, orchestrates and designs digital experiences and products for brands, companies and people. Strategy, products and activation are the central services of the group. Technology is the connecting and scaling element. The main focus of activities lies in strategic consulting, conception and design, technical realisation of brand platforms, business applications, websites, hosting, digital campaigns and mobile apps. Performance marketing and media services such as media planning, search engine marketing and optimisation also represent an important business area. Digital illustrations, virtual reality (VR) and augmented reality (AR) as well as animations complete the range of services.
As expected, the effects of the Covid-19 pandemic have also left their mark on SYZYGY AG. In the first half of 2020, sales declined by -14.6 % to EUR 26.95 million (previous year: EUR 31.57 million). In the second quarter, which was particularly affected by the pandemic, the company even recorded a decline in sales of -24.1 %. However, the SYZYGY management has confirmed its forecasts for the current financial year 2020. For the second half of 2020, the business environment is expected to improve overall and the analysts of GBC Research have therefore slightly raised their previous forecasts for 2020. As part of their DCF valuation model, they have raised their previous price target from EUR 9.25 to EUR 9.40 and continue to assign a 'Buy' rating.