December 5th, 2023 | 06:50 CET
Manuka Resources, Spotify, MicroStrategy - Endless buy signals
Despite the challenging conditions, there is already a festive mood on the world's stock markets three weeks before Christmas. Germany's leading index, the DAX, is only marginally below its all-time high of 16,532.50 points, the precious metal gold has already reached a new record high and Bitcoin has broken through the USD 40,000 mark after more than 18 months. The fact that an increasing number of individual stocks were also able to generate buy signals ensured a further price rally.
time to read: 3 minutes | Author: Stefan Feulner
ISIN: Manuka Resources Limited | AU0000090292 , SPOTIFY TECH. S.A. EUR 1 | LU1778762911 , MICROSTRATEG.A NEW DL-001 | US5949724083
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Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Spotify - Staff cuts provide a boost
Investors reacted to the management's announcement that around 1,500 employees, or 17% of the workforce, would be made redundant with a share price increase of over 6% to a new high for the year of USD 192.00. A total of 600 employees were laid off in January and a further 200 in June. The CEO of Spotify, Daniel Ek, also predicted further more minor cuts for 2024 and 2025. The dismissed employees will receive a severance payment equivalent to five months' salary.
During the fourth quarter, the Swedish company expects to incur costs of approximately EUR 130 to 145 million due to the layoffs. The majority of the cash component of these costs would be recorded in the first and second fiscal years of 2024. Therefore, for the fourth quarter, Spotify expects an operating loss of between EUR 93 million and EUR 108 million, compared to its previous estimate of an operating profit of EUR 37 million. In the third quarter, the Company was able to generate a profit thanks to price increases on its streaming services and an increase in subscribers across all regions. The number of monthly listeners was forecast to reach 601 million in the Christmas quarter.
"Given the gap between our target financial position and our current operating costs, I have decided that a comprehensive measure to adjust our costs is the best option to achieve our goals," stated the CEO.
Manuka Resources - Breakout signal
Australia's youngest gold and silver producer is currently experiencing an interesting chart situation. After hitting lows of AUD 0.04, the share price has been able to push towards the chart support zone at AUD 0.051 in recent days amid high volumes. A breakthrough would generate upside potential to at least AUD 0.068.
Fundamentally, everything is going according to plan for the Company from Down Under. Manuka Resources is already generating ongoing cash flows from the Company's flagship Mt Boppy mine. In the third quarter of the 2023 financial year alone, 2,118 ounces of gold were sold. Revenues increased to AUD 6.5 million. In addition, September was the strongest month to date with sales of AUD 3.86 million, which resulted in the first positive cash flow at the Group level.
A significant expansion can be expected in the coming months. Following the resumption of production in the second quarter, Manuka Resources increased its gold inventory by 360% to 160,100 ounces. In addition, the measured and indicated resources have increased by almost 80% to 76,500 ounces, with a grade of 3.53 g per tonne. As a result, the testing of further exploration targets promises a significant increase in the total resource.
In addition to the Mt Boppy mine, the Australians operate the Wonawinta Silver project, a deposit with a mineral resource estimate of 51 million ounces, making it one of the largest silver producers in Australia. Furthermore, Manuka Resource aims to become one of the key Western producers in the GreenTech sector by acquiring the South Taranaki Bight project and mining vanadium.
MicroStrategy - Outperforming the market
It looks like the crypto market's top bull, founder and former CEO of MicroStrategy, Michael Saylor, was right. After a crypto winter that has lasted since November 2021, Bitcoin may have bottomed out by breaking through the USD 40,000 mark. The Company from Virginia in the United States was even able to outperform the underlying asset significantly.
Since the beginning of the year, the performance of the Company with the largest Bitcoin holdings is 297%. At USD 571, the price broke through its high of March 2022 and will likely head for the next resistance zone at USD 622 in the short term.
The fact that MicroStrategy seemingly still has too few Bitcoins in its portfolio is shown by the fact that the Company invested a further USD 593 million in the world's largest cryptocurrency a few days ago. The technology company paid an average of USD 36,785 per unit for the 16,130 BTC. Therefore, MicroStrategy's total holdings amount to 174,530 Bitcoin with a total value of USD 5.28 billion. The average purchase price is USD 30,252 per coin.
MicroStrategy, the Company with the world's largest Bitcoin holdings, is benefiting massively from the rising underlying value. Spotify jumped to a new high for the year, fueled by a wave of layoffs. The chart of Manuka Resources is also on the verge of breaking out to higher price levels.
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.
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