06. November 2020 | 10:15 CET
Infineon, dynaCERT, Nemetschek: Where innovations drive the share price
The future is traded on the stock exchange. Those who invest in the right companies can achieve rapid returns. But how do you find out which innovations will cause share prices to rise? Since its IPO shortly before the turn of the millennium, the German chip specialist Infineon has developed into an essential Company in the chip industry. Just a few months ago, Infineon completed the critical acquisition of Cypress Semiconductor Corporation, adding areas that are important for the Internet of Things, and other applications related to the new 5G mobile communications standard, to its portfolio.
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ISIN: CA26780A1084 , DE0006231004 , DE0006452907
Infineon as a beneficiary of the mobility turnaround
Investors reacted positively to Infineon's acquisition of Cypress. The share climbed by almost 40% on a one-year horizon. Most recently, the Company from the greater Munich area issued a cautious growth forecast and kept the dividend stable. This announcement, too, was well-received by investors and once again ensured stable growth in the share price. Infineon's high dependency on the automotive industry is seen as a possible risk when investing in the Company.
More and more chips are installed in modern vehicles. If sales weaken, this also affects the suppliers. Unlike traditional suppliers, however, Infineon has a different position with its quality. The stock can even be seen as a beneficiary of the mobility turnaround, as cars will be increasingly networked in the future. The complete lockdown in March did little to affect the stock, the risks at Infineon are manageable, and the Company is in a good position.
dynaCERT makes combustion engines "greener"
dynaCERT is also considered a Company that has positioned itself around the mobility revolution. Canadians have developed a catalyst that can significantly reduce CO2 emissions and fuel consumption. dynaCERT's target group is not the automotive industry, but fleet operators. Thanks to dynaCERT, they will be able to retrofit existing fleets and thus make them "greener". The Association of German Engineers (VDI) also proves that this approach can make sense: The experts are pointing out that too clear a focus on electromobility could jeopardize the CO2 targets since combustion engines are still less polluting along the entire value chain.
Local authorities, in particular, are under pressure to cut emissions. Instead of replacing old vehicles, dynaCert can reduce the negative consequences of existing combustion engines. A catalyst from dynaCERT can pay off within one year and makes buses or other heavy machinery, more environmentally friendly. In recent months, the Company has already been able to convince several municipalities in North America of its product. Most recently, dynaCERT has expanded its software offering in the telematics sector and is now also focusing on fleet management, route planning, driver safety and load management.
Nemetschek scores with software for the construction industry
Nemetschek recognized many years ago that software could be a profitable business. The Company primarily addresses architects and representatives of the construction industry. In addition to CAD software, which converts construction drawings and plans, Nemetschek also offers software for the planning and execution of construction projects, for example, when it comes to obtaining quotations.
Nemetschek's figures also show that it makes sense to map a sector fully. The Company left a small damper behind during the initial lockdown and recently presented reliable statistics. To ensure that the Company remains on course for growth, Nemetschek has made an acquisition and also opened up a business segment in the media sector. On the stock market, investors are pleased to report a return of almost 27 percent during the past year. Particularly recently, there has been a significant increase. The reason was an increase in the forecast.
dynaCERT can be considered a latecomer
Whether Infineon, Nemetschek or the smaller company dynaCERT - innovations generally pay off for investors. Although dynaCERT has a zero return on investment on a one-year horizon, this perspective fails to recognize that the share price was already almost in double figures before the pandemic. Since nothing has changed in the Company's technology since then, the volatile value may be considered a latecomer. But conservative investors are also well served by Nemetschek and Infineon - after all, innovations make prices.