Close menu




February 1st, 2021 | 07:30 CET

Nokia, Pollux Properties, AMC Entertainment, B-A-L Germany: Long or Short?

  • Investments
Photo credits: pixabay.com

What a week it was! Stock market history was effectively rewritten. Crowds of investors banded together on social media channels and declared war on the established Wall Street Gurus. The chase of the little guys against the big guys started with some stocks on the NYSE. These stocks had poor numbers due to the Covid-19 pandemic and therefore tended to trade on the short side with hedge funds. That called out the Robinhood community. They buy the shares at any price, forcing the big players in parallel to overpriced, even panic-stricken buying. The result: A stock like GameStop gained around 1,600% in one month. Shares that were quoted at an average of USD 15 in December are now only available beyond USD 300.

time to read: 5 minutes | Author: Mario Hose
ISIN: SG1I77884290 , FI0009000681 , US00165C1045 , DE000A2NBN90

Table of contents:


    Nokia - Together with Google in the matter of 5G

    Nokia was also one of the wow stocks last week. Within 5 hours on Monday, it went from EUR 3.5 to EUR 4.5 while the home stock exchange was still closed for a holiday. On Wednesday, due to ongoing social media campaigns, a price of EUR 6.5 was reached, which was then an almost 80% price increase within 48 hours. The STOXX all Europe 100 stock reacted with a message that nothing relevant had happened at the Company. The community then let the stock fall again and the price ended up at around EUR 3.80 on Friday. According to data provider Ortex, hedge fund losses total more than USD 70 billion last week - which could put central banks and regulators on alert.

    Nokia itself has been going through a repositioning for the past 5 years. The fundamentals are getting better and better and they also want to pay out a dividend again for 2020. The Company is at the forefront of 5G technology and recently announced a significant cooperation with Google. The Finnish network supplier wants to develop innovative 5G solutions for corporate customers together with Google's Cloud division. While Nokia will contribute its 5G expertise, Google Cloud will provide the platform for new applications and help customers build their 5G-enabled services. The first solutions in virtual reality, autonomous driving and Industry 4.0 applications are expected to be ready by the end of the year. In our opinion, despite the recent roller coaster ride, the Nokia share remains attractive in the medium term.

    Pollux Properties - Land is scarce in Singapore

    The city-state of Singapore is a major Asian city with the most Western of characteristics. Clean, safe and highly-priced compared to the rest of Asia, it offers a living of the highest standard. The Asian metropolis is only 725 square kilometers, but the population density is relatively high, with 5.8 million inhabitants. No wonder that real estate prices have been rising for years and building land is becoming increasingly scarce. With a GDP of USD 364 billion, Singapore ranks 35th globally, and the popular stock exchange also ensures the settlement of many international companies and quite a few financial institutions. The region is booming!

    The Company Pollux Properties is a real estate developer and portfolio holder from Singapore. In an environment constrained by the pandemic, 2020 was another record year for the holding Company, with a total of 138,474 gross floor areas built and a corresponding construction volume of nearly SGD 400 million. The fund management division manages an additional SGD 16.8 million, with 7 large greenfield properties built in 2020. Construction activity in Singapore remains high, with price increases of 12.7% per annum over the last 5 years. Singapore is among the top 10 most expensive metropolitan areas for rents, behind Sidney, Dublin and Paris.

    All in all, Pollux already earns SGD 9.5 million per year with a real estate investment of 11,150 sqm of residential and commercial space - and the trend is rising. Another central pillar is the fund management for institutional clients with a current volume of SGD 16.8 million. Here an increase of about SGD 20 million is expected in the next 5 years. Pollux is very well positioned for the prospering environment in Singapore and is growing steadily due to its good market expertise. Pollux shares are currently capitalized at SGD 83 million, with the share price fluctuating between SGD 0.02 and SGD 0.03. Value is still undiscovered, but sales in Frankfurt are presently increasing.

    AMC Entertainment - Cinema operator makes a splash

    Another candidate for airy course jumps is the cinema operator AMC Entertainment. Here, too, the Robinhood Guild would like to have identified a large short position. The conclusion is evident because cinemas, in particular, are significantly affected during the pandemic. They will find it challenging to transfer their service offerings to the online world because the mega players of the streaming industry are already dividing up the pie accordingly. The forced closures of the operations lead to compensation payments from the pandemic funds, but today it is sometimes questionable whether one can open a cinema of the current type again without any problems.

    AMC Entertainment Inc. is a global operator of movie theaters. Since May 2012, American Multi-Cinema (AMC) has been 38% of the Chinese Wanda Group. Since the beginning of March 2016, it has been the global industry leader with currently around 11,000 cinema screens. In Germany, AMC is represented by the United Cinemas International brand, which belongs to the Odeon Group.

    In 2020, sales are unlikely to reach USD 3 billion. With a lack of unpublished blockbusters like the new James Bond and a correspondingly long opening period, a saturated loss in the billions is likely to arise. The short-term inflated capitalization of just under USD 2 billion could also quickly pulverize overnight. Caution is advised!

    B-A-L Germany - Something is up!

    Finally, it is worth taking a look at another real estate stock from Germany, B-A-L Germany. In the last 4 weeks, the price has risen secretly from EUR 1.15 to EUR 1.45, with increasing sales. The chart can now really inspire; if the trend continues, soon it will reach the mark of EUR 1.80, where a capital increase took place in early 2020. Fundamentally, things are going well. With a managed living space of 3749 square meters (plus 34.8% in 2020), it is one of the larger private real estate companies.

    The newly acquired properties could all be retreaded during the pandemic due to the high availability of artisans. New leases for the winter semester went according to plan and reduced the vacancy rate to 11% - new leases in January have not yet been recorded. The interest rate environment, which remains very low, is currently inviting new investment; especially during the pandemic, there are family household expansions with corresponding housing needs.

    There is much to suggest that the B-A-L stock has now started the turnaround. On Friday, more than 50,000 shares changed hands at prices above EUR 1.40, which takes out the chart-technical cap at EUR 1.35 and should lead to further rises. With small values, a development is often underway with rising turnover, which only becomes known later through announcements. A long position is worthwhile here - the analyst firm Sphene Capital also sees an unchanged price target of EUR 2.50.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



    Related comments:

    Commented by Fabian Lorenz on June 29th, 2022 | 12:18 CEST

    Buy or sell? Nel, Zalando, Aspermont under analyst review

    • Commodities
    • Investments
    • Hydrogen
    • Mining

    After the heavy losses of the past months, a countermovement seems to be starting at the moment. Whether this will turn into a real summer rally remains to be seen. Buy or sell is the question. Analysts see a price potential of over 50% for Nel ASA. Even though competition from China and India is increasing. Aspermont also appears attractive at the current price level. The latest quarterly figures were positive, and the positioning of the small-cap in the booming commodities sector is promising. At Zalando, analysts react to the profit warning, and the price targets are significantly reduced. Nevertheless, some advise buying the online fashion retailer, but not everyone.

    Read

    Commented by André Will-Laudien on June 24th, 2022 | 11:19 CEST

    TUI, Pathfinder Ventures, Lufthansa - The travel market is back - where are the share prices?

    • travel
    • Investments
    • Camping

    The travel market has changed dramatically since 2019 in light of the Corona pandemic. Due to the most extensive pandemic standstill in 2020, the capacities for flights, rail traffic and accommodation were adjusted downwards dramatically. Major cost reductions occurred primarily through de-occupancy and staff reductions. Travel companies cut their basic capacity utilization with partners to such an extent that many smaller operations had to pull out of the race, and large corporations could only survive with extensive state aid. Now, however, the situation has turned 180 degrees and demand for travel is exploding. However, this time it seems difficult to ramp up the reduced capacities in line with demand. We look at the opportunities of three typical industry players.

    Read

    Commented by Armin Schulz on June 24th, 2022 | 10:15 CEST

    Commerzbank, Triumph Gold, Bitcoin Group - Inflation alert! Which stocks bring returns in this market environment?

    • Gold
    • Crypto
    • Investments

    We have not seen such high inflation for decades. Looking back, it becomes clear that one cannot compare the situation back then with today. Back then, interest rates were at 12%, and as a saver, you could generate an increase in value for your money despite inflation. Today, interest rates are much lower than inflation. Putting money in a savings account will not bring any investor a profit. If you want to protect your money, the first thing that comes to mind is gold because it is considered crisis-proof. But nowadays, it almost seems as if cryptocurrencies could outperform gold. Alternatively, one can bet on stocks that cover these areas. We take a closer look at three companies.

    Read