August 8th, 2022 | 11:53 CEST
New opportunities in space: Deutsche Lufthansa, Kleos Space, Airbus
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"[...] In addition to campsite fees, Pathfinder Ventures has put itself in a position to offer all of these sought-after camping solutions. The only thing they don't sell is the RV itself. [...]" Joe Bleackley, CEO, Pathfinder Ventures Inc.
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Lufthansa: Considered a "general store"
The Deutsche Lufthansa share exited last week on a friendly note. Above all, the agreement with ground staff in the wage dispute gave hope. But the industry remains under pressure. The tense situation on the energy markets may also fuel oil prices and, thus, indirectly, kerosene prices again. Inflation is also hitting many consumers with a delay - many vacationers will likely want to postpone bookings for next summer and take a look at their utility bills first. That makes it more difficult for airlines to plan flight schedules and to secure capped capacity in good time.
Lufthansa also has potential for optimization when it comes to aircraft. In total, the crane airline flies 15 types of aircraft. The competition, such as Ryanair, is much simpler in this respect. That makes personnel easier to replace in case of doubt and lowers maintenance and repair costs. Lufthansa has also swallowed up many airlines in recent years, which in turn have to be integrated. Here, too, inefficiencies lie dormant. Given the difficult general conditions and Lufthansa's appearance as a kind of "general store around air travel", the share is not particularly interesting despite its recent high.
Kleos Space: Data from space - new satellites launching soon
While Lufthansa is being crushed by low-cost carriers like Ryanair and swanky competition from the Middle East, satellite operator Kleos Space has little competition. Kleos Space has already launched three satellite clusters into orbit. A cluster consists of several satellites that can identify radioactivity on Earth and evaluate it together with the software on Earth. For example, the Company can infer the activity of smugglers, pirates or human traffickers. Kleos Space then sells this data to customers, such as shipping companies and government agencies. The fourth satellite cluster is scheduled for launch between September and November.
The more clusters that arrive in orbit, the better the data quality will be. To experiment with data, Kleos works with its customers. Most recently, Kleos Space announced plans to work with the US Navy to analyze data. Furthermore, the Company reported in June that it had received orders and contracts totaling EUR 1 million within two months. So the commercialization of the business model is making progress. Given the uniqueness of Kleos Space's solutions and the close collaboration with customers, there is an opportunity to identify additional revenue streams. Like many growth stocks, the share has come back in recent months, but its prospects make it attractive to speculative investors.
Airbus: All in one share, but no fantasy
One stock that perfectly brings together aerospace and aviation is Airbus. The Europeans are the most important civil aircraft manufacturer and are responsible for the Ariane rocket systems. Airbus also has a lot to offer in the defense sector. In recent months, the Company has managed to increase its production significantly. The sector, which was in little demand six months ago, is now attractive. Everyone wants to go on vacation, and they want to do so with the smallest possible CO2 footprint. In terms of economy, Airbus has made a name for itself in the pandemic and increased profitability. The Company also has ambitious ambitions regarding alternative fuel sources for aircraft and has visions of hydrogen, for example. The share has been moving in a volatile sideways direction for around a year. In the long term, however, Airbus is in a good position - but the stock will not show a spectacular climb.
While the two traditional companies, Airbus and Lufthansa, are currently not so promising, the satellite operator and data collector Kleos Space is only at the beginning. The cooperations with big names, such as the US Navy, give hope. Kleos Space is also largely unrivaled. The share remains speculative, but the flip side is tangible opportunities if Kleos Space earns money soon.
Conflict of interest
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