07. December 2020 | 09:39 CET
Nordex, Osino Resources, home24 - good news far from being processed in the price
Information is not always wholly and immediately reflected in the price of securities. Especially for companies outside the large caps, this information processing takes longer, which often opens up suitable trading and investment opportunities for investors. Who will win the race?
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ISIN: CA68828L1004 , DE000A0D6554 , DE000A14KEB5
Nordex - oversubscribed capital increase
At the beginning of December, Nordex SE raised around EUR 200 million from international institutional investors in a capital increase. According to the Company, the transaction, in which 10.7 million share certificates were offered at a price of EUR 18.90, was substantially oversubscribed.
The North German wind turbine manufacturer intends to use the inflow of funds to continue growing, implement strategic measures and strengthen its balance sheet. At the end of September, the Group had orders in hand in the "Projects" and "Service" segments worth EUR 7.9 billion. As these orders are increasingly processed using the latest product platform, higher margins can be realized in the future.
The fresh capital strengthens the equity base and enables accelerated growth. However, consolidation often occurs shortly after a capital increase due to the dilution effect. After a short break, the Company, which is currently valued at a market capitalization of around EUR 2.2 billion, should be able to grow further.
Osino Resources - good news with great potential
Osino Resources Corp. is a Canadian gold exploration Company focused on the acquisition and development of gold projects in Namibia. Namibia is mining-friendly and considered one of the most stable jurisdictions on the continent, both politically and socially. The Company holds a total of 23 exclusive prospecting licenses in the vicinity and along the mineralized zones of the producing gold mines Navachab (QKR Namibia) and Otjikoto (B2Gold Corp.). The management has extensive experience in the development of mine projects and their sale. The discovery of new mineral deposits is a catalyst for rising prices in the short term. In the medium term, it is the potential to sell projects or the whole Company.
Osino owns an area of an impressive 6,577 square kilometres. This year the Company focused, among other things, on the definition and development of the new Twin Hills gold discovery. In mid-November, Osino reported good news, which in our opinion is not yet sufficiently reflected in the share price. Interpretation of drill results from the Both Clouds East and West sections within the Twin Hills Central Zone suggests that the length of the mineralization trend has doubled from 1,500 to 3,000 metres.
The stock is quoted at CAD 1.25 and has a market capitalization of CAD 125 million. Given the vast land package and good news flow, the stock is favorably valued.
home24 - a double opportunity for investors
home24 is a leading pure-home & living e-commerce platform in continental Europe and Brazil. The Berlin-based Company employs more than 1,500 people worldwide and is active in seven European countries. home24 is present in Brazil under the brand "Mobly".
Recently, the Company raised its targets for the current fiscal year due to an increase in incoming orders and higher profitability. Based on the strong performance of the share and a significantly increased liquidity, the Company, valued at just under EUR 500 million, will be included in the DAX on December 21.
At the end of last week, home24 announced plans to initiate the process for an IPO of its Brazilian subsidiary. The IPO will take place in February 2021 at the earliest and will contribute to accelerating the growth of the Brazilian Company. Such "spin-offs" often give the shares of the parent company a good performance, but statistically speaking, the spin-off companies perform even better. And here lurks a double opportunity for investors.