10. June 2021 | 11:34 CET
Heidelberger Druck, windeln.de, NEL, Osino Resources - 100% machines!
These are fluctuations! It is not unusual that stock markets tend to caper near their highs. It is currently the order of the day for smaller, relatively insignificant stock exchanges to be traded with extreme price fluctuations in both America and Europe. Yesterday it was Heidelberger Druck and above all windeln.de, which increased about tenfold in 3 trading days. In the USA, the Reddit squeeze of AMC and GameStop is still going on. The shares of Clover Health took the cake yesterday with a 100% increase in one day. We focus on some of the protagonists of this sectoral bull market.
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ISIN: DE0007314007 , DE000WNDL201 , NO0010081235 , CA68828L1004
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Heidelberger Druck - Figures a little disappointing
Heidelberger Druckmaschinen AG aims to return to profit in the current fiscal year thanks to cost cuts and rising demand. In the last fiscal year, 2021/22 (ending March), the printing press manufacturer reported a slight increase in sales and a slight improvement in the operating margin measured by EBITDA. The Wiesloch-based Company has already reduced its bottom-line loss from EUR 343 million to EUR 43 million. Sales fell by almost a fifth to EUR 1.91 billion, while the operating result adjusted for restructuring costs climbed by 43% to EUR 146 million thanks to costing reductions and job cuts.
Heidelberger is cautious in its outlook. While packaging printing has already returned to pre-crisis levels at an early stage, commercial printing will be slower to recover from the effects of the pandemic. Sales are expected to reach at least EUR 2 billion this year. In terms of operating margin, the Company remains cautious due to uncertainties regarding the amount and timing of business disposals, including conversion costs; the target is 6 to 7%, compared to 5% in the previous year. Overall, after-tax earnings are expected to be slightly positive. Although the stock market expected more positive indications for 2021, the share price dipped for the time being after rising more than 300% in 8 months. Caution at the platform edge!
windeln.de - What a 48H rally
Caution too with windeln.de! The Company has been issuing profit warnings to the market for several months. However, since 07.06. the price has been going upwards significantly. Has gold now been found? No, as with other micro-caps and insolvent listings, there was a flood of orders from small speculators for windeln.de, which had been trending downward for a long time. The hype seems all the more astonishing because there is no news from the Company.
The mail-order Company, with its approximately 200 employees, has been struggling with financial difficulties for years. In 2020, the bottom line was a loss of EUR 13.7 million. The Company also operated at a loss in the first quarter of 2021. The fact that investors are now nevertheless rushing to buy the stock seems to be due more to the questionable recommendations shared on social media. Be very careful with which sums you play along here, the price is not fundamentally justified, and the hype will probably soon vanish into thin air. windeln.de would be advised to carry out a capital increase at this level.
NEL - Somewhat recovered, but still no breakout
Hydrogen has been under pressure for weeks, but there are partial recoveries. The NEL share was able to recover from its lows below EUR 1.60 and is now trading at around EUR 1.73. But the share is not out of the woods yet.
Global warming, decarbonization and mobility are all topics that are currently en vogue and will remain so in the coming years. There is no doubt that hydrogen is an industry of the future, but its industry representatives have been in a strong correction mode since February. Plug Power, as the industry leader, is already stepping on the gas again and has gained 50% from its low.
Of course, things look a bit worse for NEL - Iberdrola's cancellation of a major deal, in particular, hit the Norwegians hard. In Germany, hydrogen technologies are being promoted with another EUR 8 billion. That brings a smile back to the CEO's face. The industry could not gain a foothold without government subsidies. After all, e-mobility dominates the minds of politicians - a set-up for the next few decades.
Under the given conditions, the downward trend at NEL should have stopped for now. We currently consider a hard look at the support level at EUR 1.62 to be appropriate, should the second selling wave still start.
Osino Resources - The next drilling successes at the Twin Hills Project
In stark contrast to the companies mentioned above, Osino Resources' business is moving forward comfortably. Osino's portfolio of exclusive exploration licenses is located within the prospective Damara mineral belt in Namibia, largely in the vicinity of the producing Navachab and Otjikoto gold mines, covering a total area of approximately 7,000 sq km.
There were further positive drill results to report in early June. The 14 brownfield targets identified in the 2020 IP survey at the flagship Twin Hills gold project have been drill tested, 4 of which have returned significant gold mineralization. The best of these showed up at Twin Hills West, with suspected mineralization now proven over 300 meters. Twin Hills West trends along a magnetic anomaly that extends to Terminal 1 and has a total strike length of approximately 3.5 kilometers. Detailed follow-up along this structural trend is, therefore, more than warranted.
The Clouds North mineralization is located only 200 meters north of the current pit outline. It is part of an undrilled east-west trending magnetic anomaly with a strike length of over 2 kilometers. Additionally, a third positive hole was drilled at Clouds West near the Twin Hills Central orebody (THC) and is currently believed to be a small, south-trending block of mineralization that extends the mineralization previously discovered at Clouds West.
To find an indication of the size of a mineral resource, many technical parameters of the drill location, angle and size of the piece of land being surveyed are published. In the case of Osino, a total of 69,000 meters have been drilled, of which assay data has been evaluated for approximately 62,000 meters. Drilling is now continuing with the aim of confirming the mineral resource in the indicated category by the end of 2021. The Twin Hills gold project under the Kalahari sand and limestone cover is now slowly taking shape. We will continue to follow the releases.
Osino shares have gained a good 20% in a month and are now trading at CAD 1.48. A market capitalization of CAD 150 million is on the cards, a remarkable 50% increase in value in just one year. Concerning the well-performing precious metals markets, Osino Resources is the first choice.