09. September 2021 | 11:42 CET
Nordex, Water Ways Technologies, MorphoSys: How investors invest in the future
The future is traded on the stock exchange. But what does it look like? It is not easy to make concrete predictions. That is one of the reasons why there are both positive and negative surprises on the stock market. But as an investor, you can help the odds, for example, by focusing on megatrends. Demographics, health, and sustainability are trends that will still be in place in ten years. We present three possible investments.
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ISIN: NORDEX SE O.N. | DE000A0D6554 , Water Ways Technologies | CA9411881043 , MORPHOSYS AG O.N. | DE0006632003
Nordex: Where is the journey heading?
Nordex has been a sustainable stock from the very beginning - ten years ago, Nordex was already one of the top sellers on the trading floor. Recently, the share came under a bit of pressure. The reason: profitability was not as high as the market had hoped. On the other hand, however, the order books are full. As a result, Nordex is a good example of short-term irritations that should not unsettle investors: The climate change is near, renewable energies will dominate or at least be enormously expanded in the future. For Nordex, this can only be good news.
But what is the share price doing? It has been drifting sideways for weeks with a slight downward trend. If it slips below the EUR 15 mark, things could get uncomfortable for the stock once again. In any case, a downward slide could last until EUR 13. Conversely, new upward potential could arise above EUR 17. Fundamentally, things do not look bad for the wind turbine manufacturer, but the share price is not keeping up. That suggests that it is better to watch the stock from the sidelines.
Water Ways Technologies makes agriculture smart
One stock where an overly passive stance can quickly pay off is Water Ways Technologies. The Israel-based Company with a home exchange in Canada develops irrigation solutions for agribusinesses. Smart agriculture has a vital role, especially in times of scarce water and increasing demand for food that is ideally healthy and free of pesticides. Water scarcity is considered one of the greatest risks facing humanity. Political analysts have even predicted wars due to water shortages or polluted rivers. Rivers are not considered lifelines for nothing - if too much water is taken from upstream or the water is polluted, conflicts of great consequence can arise. Water Ways Technologies addresses the root cause - agriculture. According to studies, agriculture is responsible for 70% of the world's water withdrawals. Acting smarter here seems like an intelligent approach.
Israel has always been innovative when it comes to growing crisp vegetables and sweet fruits on barren land. Consequently, Israel is also considered the motherland of agricultural technology. Water Ways Technologies continues this tradition, using sensors and apps to make the most efficient use of water. The current Company's forerunners were founded in Israel in 2003, and Water Ways Technologies has been successfully listed in Toronto since 2019. The Company has since known how to leverage investor capital successfully: In June 2019, they established a subsidiary in Canada and in February 2020, a subsidiary company in China. One year later, the most successful deal in the Company's history followed in Asia with an order worth CAD 4 million. 2021 was also successful for Water Ways, with the first half of the year bringing revenues of CAD 12.1 million and EBITDA of CAD 832,000. Today, the Company is in a better position than a year ago in almost all areas. In addition, Water Ways Technologies plans to actively communicate its success in Europe in the coming weeks and months. Water is a precious commodity - likely, there is also good money to be made from it on the stock market. With Water Ways, investors can bet on a dynamic company that has just entered the growth path.
MorphoSys: No party mood despite approval
Business is traditionally volatile for companies such as biotech group MorphoSys. The Company recently received European market approval for a drug to treat malignant diseases of the lymphatic system. But new drugs always have high start-up costs. At the end of the first half, MorphoSys posted a loss of EUR 101 million. The share is also very weak again after a few positive days. The shock of the half-year loss has not yet been digested on the stock market, making the share rather uninteresting.
Even if cancer drugs are a great hope for many patients, the MorphoSys share is currently not. Nordex is also presently lacking in imagination. Water Ways Technologies, on the other hand, looks much better. It is a small company that has only just found its way onto the growth path and operates in an attractive sector.