16. July 2021 | 13:22 CET
Microsoft, Daimler, Mineworx Technologies - Market leaders on the rise!
The claim to market leadership can be made by the Company that can demonstrate the largest market share in comparison with the other market participants. The measure of market share is based either on market volume or market sales in units. Some typical attributions are the market leader in Germany, the European market leader or the world market leader in a relevant product sales market. Of course, market leadership is not indisputable, especially from a subjective point of view. A broader focus is needed to determine who sets the tone.
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ISIN: MICROSOFT DL-_00000625 | US5949181045 , DAIMLER AG NA O.N. | DE0007100000 , MINEWORX TECHS LTD | CA6034651050
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Microsoft - Windows 365 now also in the cloud
A clear world market leader is Microsoft. Founded by Bill Gates in the garage, the Company is worth USD 2.15 trio today, second place in the value ranking behind Apple. Now the most widespread operating system, Windows, is also fully cloud-capable. That makes things easier for users: Updates run in the cloud, you always work with the latest version, and virus protection is also up to date. Cons: The ongoing subscription fees will re-price this service and create a certain dependency.
The virtual PC can be used via the web browser from various devices - be it a third-party PC, a tablet or even a smartphone. The cloud PC can also be accessed via Microsoft Remote Desktop, which is available as a subscription. All data is stored and secured in the cloud instead of on the device used. The level of data security is thus hard to beat. With this platform, Microsoft is setting new standards in efficient office work, also from the point of view of strong physical workstation reductions at companies. Since the entire Windows PC is in the cloud, employees in the home office do not have to configure and activate VPNs before accessing it.
The Microsoft share price has been showing muscle again in recent weeks, with the share price already up 36% in 2021 alone. The market leader is currently trading at a P/E of 37 and a price-to-sales ratio of 12. Certainly not expensive for the NDX in 2021 - thinking back five years, this is insane.
Daimler - Premium manufacturer defies chip shortage
And we would like to introduce another market leader: Daimler AG. Who would have thought in March 2020 that the premium manufacturer would start out of the woodwork again like this? Daimler-Benz has a long history in automotive development. With the market now expecting giant leaps in electric mobility, the German producer guard has sounded the attack on Tesla & Co. Typically German, the decision came relatively late, but now they are trying to avoid the rookie mistakes of others. At least this saves a little money, but a research backlog of 2-3 years must first be made up.
German engineers are currently proving that they can do this. The latest figures from Stuttgart have even surprised the Company's own finance department, as the car and truck manufacturer once again earned more than expected in the past quarter. According to preliminary figures, earnings before interest and taxes (EBIT) adjusted for special effects amounted to EUR 5.42 billion, significantly more than analysts had expected, at EUR 4.3 billion on average. In the same period last year, the Stuttgart-based Company had reported an adjusted operating loss of a good EUR 700 million. This loss was due to the collapse of the car markets in the Corona pandemic, resulting in a loss of billions on the bottom line. Due to the trend toward leasing, the continued strength in the financial services business was a positive surprise.
Although the chip shortage is currently an issue, it has had little noticeable impact on the profits of the major German auto groups. One of the ways carmakers are currently coping is by giving preference to higher-margin cars with scarce parts. This may make ordinary people wait, but it makes premium customers happy.
The Daimler share is currently doing splendidly. With a price increase of 95% in one year, it is even a DAX outperformer. At the current price of EUR 73, we would put in a safety stop at EUR 66 and remain clearly invested.
Mineworx Technologies - Recycling critical metals
Not a world market leader, but a company with entirely new ideas is Canada's Mineworx Technologies (MWX). MWX is consistently working its way into a green industrial niche with new processes. As a diversified technology supplier for the mining industry, it covers several production stages with modern recycling solutions. The main approach here is the commercialization of the Company's proprietary, environmentally friendly processing technologies for the recovery of precious metals in the catalytic converter and mining sectors.
The shift to electric mobility is leading to the mass discarding of older combustion models. Recyclers are not prepared for this onslaught, either technologically or in terms of capacity. That is because the only current commercial method for recovering palladium and platinum from catalytic converters is smelting, which turns out to be a messy and challenging process, especially for diesel oxidation catalytic converters and particulate filters. Relatively inefficient processes can currently recover only 30% of the platinum and palladium from exhaust systems, producing toxic waste.
MWX will build the first commercial extraction plant in Tennessee. The joint venture will be named PGM Renewal LLC, in which Mineworx USA will own 55% and Davis 45%. Mineworx will provide its technologies and processes under the joint operating agreement, while Davis will be responsible for supply chain management and materials processing for the diesel catalysts.
Mineworx Technologies has succeeded in putting a green coat on a critical sector, in addition to increasing platinum and palladium recovery rates to over 90%. With about 342 million shares, its market capitalization is currently only CAD 30 million. MWX is a green investment with a clear vision in the environment of disruptive change within future mobility.
If you want to be the world market leader, you have to be particularly innovative to maintain your lead. Microsoft and Daimler are very strong in their segments and invest billions to maintain their market position. Mineworx has new and good ideas in a highly dynamic environment and is extremely rich in opportunities from this perspective.