Close menu




March 13th, 2024 | 07:30 CET

HelloFresh, Royal Helium, Evotec - Rebounds in sight

  • Mining
  • Helium
  • Biotechnology
  • Food
Photo credits: pixabay.com

Despite all the various challenges in today's world, such as geopolitical tensions or inflation, the stock market indices have managed to climb upwards. Investors are faced with a crucial question: Where is the hidden value in a market that has already broken many records? The answer could lie in those stocks that have so far stood on the sidelines of the great rally - the silent but potentially strong performers waiting for their rebound. This strategy shifts the focus away from the usual suspects who have already posted substantial gains to stocks that are ready to initiate their own rebound, potentially unlocking significant value for patient investors in the process. We have identified three such candidates.

time to read: 4 minutes | Author: Armin Schulz
ISIN: HELLOFRESH SE INH O.N. | DE000A161408 , ROYAL HELIUM LTD. | CA78029U2056 , EVOTEC SE INH O.N. | DE0005664809

Table of contents:


    HelloFresh - Stock market crash following revision of earnings expectations

    HelloFresh's share price fell by a substantial 45% after the Company revised its financial targets for 2025 downwards to EUR 10 billion in sales and EUR 1 billion in EBITDA. This move raised concern among investors, leading to substantial sell-offs and marking the largest share price decline in the Company's history. Analysts saw this revision as further evidence of the challenges facing the Company, especially after previous forecast adjustments. The Company saw substantial growth during the COVID-19 era, with the stock reaching over EUR 95 at its peak. Since then, it has been on a downward trend.

    Sales for 2023 are expected to be around EUR 7.6 billion, similar to the previous year. The adjusted EBITDA is projected to be EUR 448 million, compared to EUR 477 million in the previous year. While these figures align with forecasts, they fall short of representing significant growth. The Company is now forecasting an adjusted operating profit of EUR 350 to 400 million for 2024. These new targets are significantly lower than the previous assumptions. One of the reasons could be the delay in the expansion of a production facility in the US. With the "Ready-to-Eat" brand, the Company wanted to establish a second mainstay in the Ready-to-Eat segment, which is a growing segment for the Company.

    However, the demand for pre-portioned meal kits is declining. New customers are only attracted by heavy discounts. The Company is faced with the task of consolidating its core business while effectively developing new growth areas. While management grapples with these strategic issues, it remains to be seen how HelloFresh can strengthen its position in the market and regain investor confidence. However, the sharp fall in the share price could present the Company as an interesting takeover candidate. The share is currently trading at EUR 7.13, giving it a market capitalization of just under EUR 1.2 billion.

    Royal Helium - Announces company update

    At the end of 2023, the explorer Royal Helium evolved into a producer of industrial gas. While this transformation may not yet be evident from the figures to date, it is expected to change with the announcement of the figures for the first quarter. The Company, with extensive licenses and lease agreements covering over 1 million hectares in South Saskatchewan and Southeast Alberta, spread across more than 15 potential helium fields, holds significant growth opportunities in a globally undersupplied market. Due to the critical nature of this resource, the Canadian government is supporting the Company with a CAD 3 million interest-free loan to facilitate further upgrades to the Steveville helium processing facility in Alberta.

    On February 28, the Company announced its development plans for its four key exploration projects. Royal Helium is focusing its development activities on the completion and testing of existing wells in the Val Marie, Ogema and Steveville areas and the drilling of new wells on the 40-Mile project in Alberta. First, there is the Val Marie project, which covers 13,000 hectares and has the highest helium levels ever recorded by the Company in the initial drill hole. The Ogema property spans 27,000 hectares and has two drill holes completed so far. The 40-Mile project covers approximately 3,100 hectares and features a historically high-grade helium well. Following the drilling results, the Company intends to decide on the next location for processing.

    The experience gained from the Steveville production facility provides a proof of concept and will enable the next facility to be implemented more quickly. A potential untapped zone has been identified in Steveville and will now be tested. If the results are positive, the life of the Steveville project could be increased by 33%. With a third well, a production buffer could be created so that production could be maintained at 100% should maintenance work be required on one of the other two producing wells. The share has yet to price in the good news flow and is trading at CAD 0.175.

    Evotec - No turnaround yet, despite the good news

    After the surprising resignation of the then-CEO Werner Lanthaler, Evotec's share price plummeted and has not recovered. The situation was explained in more detail in a conference call. Lanthaler had asked the Supervisory Board to terminate his employment contract at the end of 2023. The Supervisory Board complied with this on January 3. At the same time, Lanthaler disclosed a series of insider transactions, which the Company reported immediately. The Company then reviewed its processes in this regard. Mr. Lanthaler will no longer be involved in any of the Company's activities.

    Evotec is focusing on strategic partnerships, such as a collaboration with Claris Ventures. Companies in Claris' portfolio benefit from easy access to Evotec's extensive pre-clinical, clinical development, and manufacturing capabilities. This agreement builds on a previously successful collaboration between Evotec and IAMA, a company in Claris' portfolio. Just-Evotec Biologics and Advanced BioScience Laboratories are expanding their collaboration to develop innovative therapies against HIV.

    Despite these positive developments and supportive analyst ratings, the Company's shares remain under pressure. The investment community awaits tangible progress and a worthy successor to Lanthaler as Evotec seeks to regain its confidence and consolidate its position in the biotech industry. After all, the short sellers have largely exited the stock, which is a positive sign. The share has been forming a bottom around EUR 12.70 and EUR 13.00 for a few days. The share is currently trading at EUR 13.07.


    Each of the three candidates has the opportunity to turn things around. HelloFresh has an operationally positive business, a claim not many online companies can make. A possible takeover could provide a boost. Royal Helium is now a helium producer and can turn other gases from extraction into money. The public is likely to take notice after the first-quarter figures. Evotec has only been dragged down by the departure of the CEO. Operationally the Company is making good progress. A turnaround is likely only a matter of time.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by André Will-Laudien on June 17th, 2024 | 06:45 CEST

    Acute threat? Armaments and high-tech in the crosshairs: Aixtron, Almonty Industries, Rheinmetall and Hensoldt

    • Mining
    • Tungsten
    • hightech
    • Defense
    • armaments

    The recent European elections have enabled the conservative camp to make significant gains. Undoubtedly, a whole bouquet of issues has led to the so-called "shift to the right". In times of war, however, the neutral observer may not be surprised that the self-proclaimed peace parties, represented by the colours red and green, have lost considerable ground. After all, the competence for peacemaking and security in Europe tends to be found in the conservative camp. The capital markets currently favour high-tech and armaments, orders are booming, and growth is assured for years to come. It is now crucial for stock market players to take a closer look at these sectors, as the high-yield performers of the first half of the year appear to be correcting more strongly. What will happen here in the medium term?

    Read

    Commented by Armin Schulz on June 17th, 2024 | 06:30 CEST

    BioNTech, dynaCERT, Plug Power - A single piece of news can change everything

    • Hydrogen
    • greenhydrogen
    • Biotechnology

    Share prices are characterized by their high volatility and can undergo significant changes in a short space of time. Often, just one piece of company news can completely change investor confidence. Shares that were previously under selling pressure and were avoided can suddenly become very popular and experience considerable price increases. Examples include Lufthansa, whose share price rose significantly with the end of the COVID-19 pandemic. Market sentiment can turn quickly when negative factors disappear. A single piece of positive company news can prompt investors to become more involved again, significantly increasing demand and, consequently, the share price. We have identified three potential turnaround candidates.

    Read

    Commented by Fabian Lorenz on June 13th, 2024 | 07:00 CEST

    Stocks on the verge of a breakout! Rheinmetall, TUI, Desert Gold

    • Mining
    • Gold
    • Defense
    • Travel

    Will Rheinmetall soon reach a new all-time high? An insider thinks so and is buying a sizeable block of shares in the armaments group. The news situation could hardly be better for the DAX-listed company. The price of gold could also break out and rise to USD 2,700 in the next wave, according to a renowned expert. Desert Gold should benefit noticeably from this. The Company's market capitalization is only a fraction of the proven gold resource, and drilling continues. And what is TUI doing? The share is not making any real progress. However, it should benefit from the FTI collapse, and the crucial summer season brings a high booking volume.

    Read