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Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


Alex Kent, Managing Director, Aspermont Limited

Alex Kent
Managing Director | Aspermont Limited
613 - 619 Wellington Street, WA, 6000 Perth (AUS)

Corporate@aspermont.com

+61 8 6263 9100

Aspermont shows the success of digitalization - Alex Kent has an agenda


23. October 2020 | 14:36 CET

Grenke, Delivery Hero, Desert Gold: Momentum shares on hold

  • Investments
Photo credits: pixabay.com

There are stocks where there is something in the air. For some of them, the trend is ultimately negative, others never pick up speed, and others just take off. Three of these potential momentum stocks are Grenke, Delivery Hero, and Desert Gold. At Grenke, the eyes of the market are focused on the accusations of balance sheet manipulation. Although the Baden-Baden-based Company has hired external auditors, suspended supervisory board posts, and announced a complete investigation, the share price is still not getting off the ground. For experienced investors, this means that something is coming to a head!

time to read: 3 minutes by Nico Popp


 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


Grenke: Something is coming to a head!

It is still unclear in which direction the share will ultimately go. However, it may make sense to take a closer look at the business in the first half of 2020. Initially, the Company was on record course before the outbreak of the pandemic. Then there was a significant slump, and towards the end of the first half of the year, the Company recovered. In July, Grenke already had new business, which was around 70% of the previous year's figure. When all signs of recovery were in place, the accusations followed. Since Grenke has opened new locations in recent months and the business has also survived the initial lockdown phase well, the signs for growth are good. Given the accusations and their complexity, however, private investors should wait with an investment in this potential momentum value until there are more facts about Grenke.

Delivery Hero with lockdown potential

The share of Delivery Hero has recently provided encouraging facts. In the first half of the year, the DAX stock achieved a sales growth of 87%. Given the lockdowns and the figures in other sectors, investors can rightly claim about the share: There is fire in it! But how sustainable is Delivery Hero's development? The Berlin-based Company has long since sold its German business and is focusing primarily on Asia and the Middle East. The Company is particularly well positioned in the latter region. Delivery Hero is paying for its rapid growth with losses. It remains to be seen whether the bet will work out for investors. On a one-year horizon, the share price has risen 120%, but it has been weakening recently.

However, the positive development of the business in the first half of the crisis in 2020 could be a blueprint for further development. More and more countries are imposing lockdowns, examples being Ireland and the Czech Republic. The Middle East is also aware of the threat posed by the virus, and new lockdowns could be beneficial for Delivery Hero's figures. However, because of the continuing high valuation, it remains unclear whether the share will be able to pick up as much momentum as in the first half of the year.

Team around gold share of the summer continues working

One stock that is predestined to be a Momentum Stock is Desert Gold. On a one-year horizon, the share's price only shows a return of 2.4%, but between May and August alone, the share achieved a return of more than 100%. Desert Gold is exploring two promising gold projects with a strategic location in Mali. Among others, Barrick Gold, B2Gold, and Iamgold are active in the country. During the summer, good drill results ensured that the price quickly gained momentum.

The Company's properties still show areas that offer further exploration potential. The Company is currently working on a 43-101 mining standard technical report and plans to publish it in the coming weeks. Desert Gold also plans to resume exploration work in November.

Desert Gold: Risk appears manageable after price losses

At a time when the pandemic is once again spreading, and states may be forced to support the economy, gold investments appear promising. While the gold price has recently stayed close to the highs, the Desert Gold share has fallen sharply. Such selling pressure can provide entry opportunities for smaller companies that have taken corporate actions in the past. Given the full coffers at Desert Gold, the promising projects, and the fundamentally strong situation for gold itself, the share could soon pick up speed again. Compared to, say, Delivery Hero, the valuation at the current level seems more attractive.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


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  • Investments

It seems as if Allianz CEO Oliver Bäte gave the starting signal for a sharp correction in technology stocks as well as for cryptocurrencies over the weekend. The Group CEO expressed concern about the issue of financial market stability. He said the situation, especially in the stock markets, resembles the situation before the crash of 2008 and the crash of 2000. Stock market legend Jim Cramer also said on Monday that investors should swap expensive tech companies for cheaper, traditional companies that ride the wave of economic recovery. We will see if the current correction heralds a longer trend.

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