12. October 2020 | 07:22 CET
K+S, EXMceuticals, Steinhoff: all a matter of timing
"The market is always right." There is much truth in the stock market wisdom when viewed over the long term. In the short term, prices are only a snapshot, especially in times of sharp price fluctuations. Sometimes it just takes a little longer for shares to move up again after a long downward phase or bottom formation. Here are three companies that are in exciting positions.
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ISIN: CA30207T1049 , DE000KSAG888 , NL0011375019
K+S AG: takeover candidate?
At the end of 2019, the fertilizer and salt producer K+S had announced that it wanted to sell its salt business in North and South America, and therefore press ahead with the urgently needed reduction of debt. Now the MDAX group has announced the closing of the deal - a consortium around the investment Company Stone Canyon Industries Holdings has been awarded the contract for USD 3.2 billion. The transaction has to be approved by the antitrust authorities, and then the purchase price is to be paid in cash in summer 2021.
Now, the Kassel-based Company can concentrate fully on the construction of the new potash plant in Canada. With this strengthening and the sale of the American salt business, K+S will be placing great emphasis on the fertilizer sector. Potash prices are currently at rock bottom, but many long-term and anti-cyclical investors see favourable entry opportunities here.
The comments of the analysts were mixed. Bankhaus Lampe now classifies K+S as a takeover candidate and formulates a price target of EUR 12.00. At the weekend, the share came out of trading at EUR 7.06. Within one week, the share price increased by 16%. The market value is currently at EUR 1.35 billion, allowing for further upside potential.
EXMceuticals INC - good news so far ignored
The medical cannabis company EXMceuticals has big plans. Listed on the Canadian Stock Exchange (CSE), the Company is confident in the potential health and wellness benefits of hemp and cannabis. EXM wants to be a large producer of high-quality cannabis ingredients for the pharmaceutical and nutraceutical market. The Portuguese refinery centre is designed for the purification of the extracts and will be used to distribute the manufactured materials throughout the world.
There have been several positive reports over the past weeks, which have been ignored by the market.
For example, EXM recently announced that it is now a member of the Portuguese Association of Pharmaceutical Industries (APIFARMA). EXM's interests are currently represented by an association that brings together industry, development initiatives, and the wider health community. The association helps to promote innovation, support robust regulatory systems, maintain high-quality standards, uphold ethical practices, and advocate sustainable health policies.
In recent months, there has also been news regarding capitalization. The Company succeeded in the summer with a capital increase, and most recently, with the conversion of loans into equity. EXM addresses a large sales market, and the investors need some patience.
STEINHOFF INTERNATIONAL HOLDINGS NV: What is essential?
The ailing Company has been struggling for a long time to survive, especially since the balance sheet scandal from about three years ago. The HHL Leipzig Graduate School of Management, which annually evaluates the financial communications of German stock corporations for Manager Magazin, gave the Company low marks. Steinhoff was awarded a "lemon" and ranked the last place among the 158 companies examined.
Nevertheless, the stock market did not seem to be interested in it. Share prices increased by 20% last week. Here chart technical considerations could have played a role.