April 6th, 2022 | 10:24 CEST
Making the best of the situation: Deutsche Bank, Aspermont, Deutsche Telekom
Table of contents:
Deutsche Bank: ESG pays off
Deutsche Bank's stock is on the upswing - a 29% return within one month is respectable. Especially in times of war. But what is the reason for the share price gains? First of all, Deutsche Bank, like all other banks in Europe, should benefit from the upcoming turnaround in interest rates. For many years, zero interest rates were poison for the core lending business. Since inflation in Germany has now passed the 7% mark, no observer probably believes that the "inflation disease" will go away on its own - some medication by the monetary authorities seems urgently needed.
And what role does the war in Ukraine play? According to Deutsche Bank CEO Christian Sewing, German banks are hardly dependent on Russia. At the end of last year, German banks' exposure to Russia reportedly stood at EUR 7.5 billion. The banker told Handelsblatt that German institutions had already reconsidered their exposure to Russia after the annexation of Crimea in 2014. This would be yet another example of how it positively affects a company's risk profile when sustainability criteria play a role.
Aspermont: Profiting from the tight supply situation
When primary products and raw materials are in short supply, and the industry has to grasp at any straw, data and information relating to commodity markets are becoming more attractive again. The Australian media company Aspermont operates renowned trade publications on various commodities. The Company has repeatedly emphasized that it has more than seven million contacts with board members or senior executives - all of whom are involved in the energy, mining and agricultural sectors. Industrial companies that process these products also find out about new developments in the market. Aspermont can use these contacts for its success.
Just recently, the Company reported the return of live events. The "Future of Mining" took place at the end of March in Sydney. More than 700 participants were registered, and 300 companies were present. A similar event is also planned for Denver in the US in September. "I anticipate that the return of live events with record attendance and advance revenue at FOM will result in Aspermont exceeding revenue and profit forecasts in fiscal 2022 and 2023," said Aspermont CEO Alex Kent. As the Company has digitized its processes in recent years, allowing it to grow quickly, Aspermont offers attractive opportunities as a data services provider around commodities. The stock has come back in recent months and is, therefore, a clear case for the watchlist.
Deutsche Telekom: Winner in inflation
Investors can also keep the Deutsche Telekom share on their radar. Although no spectacular price developments are expected here, the value is nevertheless preparing to leave its downward trend. The high from before the war could be the starting signal for a recovery movement. Telekom has withdrawn from Russia and is involved in refugee aid for Ukraine. The Company has provided SIM cards and enabled phone calls from phone booths to Ukraine free of charge. But the most important reason for the stock's popularity is Telekom's role as a 21st-century utility. Communications and data are essential, and the Group has excellent pricing power in times of rising prices. Regular cash flows are also an argument favoring the "pink giant."
Even though the situation is challenging, some companies are making the best of the situation. Stocks such as Deutsche Bank, Deutsche Telekom and the media provider in the commodities sector, Aspermont, are even profiting. While the former companies are true heavyweights, Aspermont could make a big splash as a small growth company.
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