21. April 2021 | 10:11 CET
Kleos Space, SAP, TUI - Companies on the move
The Corona pandemic continues to keep the world on tenterhooks. Nevertheless, the S&P jumped a good 8% within three weeks. How should you currently set up your portfolio? That is the question. Many stocks are at their all-time highs and have had real rallies. If you want to protect yourself from a setback, you have to anticipate trends and find stocks that are either broad enough or ones that can promptly score with good news. Preferably both. If these candidates are then also at all-time highs, there is potential. We highlight three interesting companies.
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ISIN: AU0000015588 , DE0007164600 , DE000TUAG000
Kleos Space - Great potential
An exciting and fast-growing space stock is Kleos Space. The Company is currently active in the maritime sector. It collects data from ships by collecting and analyzing radio frequency signals via satellite. The satellite cluster, which consists of 4 satellites, stands out from the competition because localization can be more precise than conventional triangulated surveying. This business area is suitable for increasing maritime security and averting threats such as piracy, illegal fishing and smuggling. At the same time, more information increases border protection.
Kleos Space can be described as a Data-as-a-Service company that creates data products from the collected data and their proprietary algorithms. These data products are sold on a subscription basis and delivered via API to government and commercial customers worldwide to support decision-makers. Two more satellite clusters are to be launched in 2021 - the first in summer and the second towards the end of the year. The aim is to improve coverage worldwide and generate more data.
The scalability in selling the data is virtually unlimited and there is an identified initial customer base of 160 institutions. Currently, it is still waiting for the 4 satellites to align correctly with each other. Once this position is achieved, the Company can launch the subscription model. The stock has been in a steady uptrend since December 2020.
SAP - Strong figures
After SAP shares came under pressure at the end of October 2020, everything can now turn around for the better, as the Company presented strong figures on Tuesday last week. CFO Luka Mucic emphasized that incoming orders for software licenses and the cloud business were higher than they had been in 5 years. Simultaneously, operating margins and operating income saw the strongest increase in 10 years.
On April 20, SAP announced the spin-off of its financial services business. With the new partner Dediq, a new company is to be formed in which SAP will hold 20%. Dediq is to invest EUR 500 million in the project.
The new Company is expected to respond better and faster to the changing needs of the banking and insurance industry and cover the core areas of the business. The project is scheduled to start in January 2021. Next, the share should close the gap at EUR 122.60 in chart terms.
TUI - Hoping for the summer business
TUI was hit hard by the Corona Crisis, as was the entire tourism industry. Since the low of March 16, 2020, at EUR 1.48, the share price has recovered over time to EUR 5.47 on February 25 this year. Since the 3rd wave, the share has come back and is currently stuck at the 50 moving average. The main question at the moment is whether the summer business is going to go well. Nobody can say with certainty at the moment. Some German politicians see a reason to hope that there may be vacation travel. Others are somewhat dampening expectations.
The Germans are travel world champions and have a thirst for travel. The EU wants to introduce a vaccination passport, which would lead to a significant upturn in tourism. Nevertheless, it is currently still pure speculation what will happen in Germany in the summer. The world looks different in England. The British are much further ahead with their vaccination campaign than we are and they are TUI's second-largest market after Germany. In England, the chances of a vacation in the summer are much better. Friedrich Joussen, CEO of TUI AG, recently confirmed this view publicly on British television. The British are expected to be allowed to travel again from May 17. TUI Cruises has already published its first cruise dates.
What remains is the question of the share's potential. The fact is that there is a dilution that should not be underestimated due to the state aid, an almost non-existent cash flow and convertible bonds. At the beginning of April, TUI AG placed a EUR 400 million convertible bond. In principle, the board could issue another EUR 1.6 billion in convertible bonds. Anyone who believes that the pandemic will end quickly can participate in the upswing in the tourism industry with TUI.