Close menu




May 30th, 2022 | 10:52 CEST

Nvidia, Aspermont, Alibaba - Shares with doubling potential

  • Digitization
  • Technology
  • Fintech
  • Mining
Photo credits: pixabay.com

Surely no one would object to doubling their investment. But after the stock market has been in rally mode since 2016, few stocks would have been expected to double in 2022. Meanwhile, some stocks have started to slide due to the Ukraine crisis, supply chain problems, and rising interest rates. Discounts of up to 50% can be observed even in large stocks. Today we go bargain hunting and analyze the potential of three different companies.

time to read: 4 minutes | Author: Armin Schulz
ISIN: NVIDIA CORP. DL-_001 | US67066G1040 , ASPERMONT LTD | AU000000ASP3 , ALIBABA GR.HLDG SP.ADR 8 | US01609W1027

Table of contents:


    Nvidia - Partnership with Mercedes-Benz as a growth driver

    Who would have thought that the Nvidia share would lose more than 50% in value from the end of November? Probably very few, and yet it only went south from November 22 at a high of USD 346.47. On May 12, the stock marked its current low for 2022 at USD 155.67. Should investors grab it now? What speaks for the Company is that it covers a lot of trends, such as gaming, artificial intelligence (AI), mining of cryptocurrencies or data centers that make data analysis, high-performance computing or AI possible in the first place. While Microsoft and Meta are intensifying their cooperation in AI applications, Nvidia is on board with its graphics processors.

    Another growth driver may become the automotive industry, where the Company plans to develop an in-vehicle computer system together with Mercedes-Benz. At the same time, an AI infrastructure is to be established. While the automotive division's revenue in 2021 was only USD 566 million, it is expected to grow to 11 billion in the coming years. Growth is important because currently, the prices of cryptocurrencies are falling. That, in turn, could impact sales of graphics cards, as they are needed for cryptocurrency mining. In its latest quarterly results, the Company fell short of analyst expectations despite a growth of 46% to around USD 8.3 billion.

    Primarily, this is due to supply chain problems. With China's strict Zero-COVID strategy in place, these problems could linger longer. But that did not stop Cathie Woods from investing in Nvidia again. In total, the Ark fund purchased USD 43.8 million worth of shares. The stock has made up about 20% from the low and currently stands at USD 188.07. Piper Sandler has issued a buy recommendation with a price target of USD 350. The share has potential, even though it is still not cheap if you look at the price-earnings ratio.

    Aspermont - Quarterly figures convince again

    Aspermont comes up with a real transformation story. From a print publisher with a history of over 180 years, it has become the leading media services provider for the global commodities industry. The Company owns over 30 B2B media brands in the mining, energy and agriculture industries and boasts over 3.6 million users in 190 countries. The Company's success is based on its Everything-as-a-Service (XaaS) model, which consists of three pillars. First, there is the content that attracts the target groups, and second, the service business for business customers. The third pillar uses the collected data to develop new products and services.

    The latest quarterly figures show how well the business is doing. Total revenue climbed 39% YOYN to 4.8 million Australian dollars AUD. Gross profit rose by 43% to AUD 3.1 million, and this with an increasing gross margin of now 65%, after 63% last year. Over the six-month period, gross margins rose by as much as 67%. Commenting on the figures, Managing Director Alex Kent said: "The resumption of live events has contributed to exceptional growth (72%) in our services business this quarter. We expect a similar impact in our services business in the fourth quarter when even more live events take place."

    In addition to the growth turbo of live events, the fintech platform Blue Horseshoe is also scheduled to launch this year. Companies will be able to raise capital on this platform. Furthermore, the print archive is to be digitized and made available to customers as a research platform. All content is to be translated into all the world's languages since 75% do not speak English. In this way, a large new customer base will be opened up. Despite all the good news, the share is running sideways and is currently quoted at AUD 0.021. The analysts at GBC see a target price of AUD 0.11. In order to reach this target, the share would have to increase fivefold.

    Alibaba - Quarterly figures exceed expectations

    Chinese tech giant Alibaba has been on a long slide. On October 27, 2020, the stock was trading at USD 319.32. Today, it is only USD 93.41. The main reason for this is the political uncertainty in China, which has repeatedly put a spoke in the stock's wheel. Currently, there is a lockdown in many Chinese cities due to the Zero-COVID strategy of the Chinese government. It was, therefore, reasonable to assume that Alibaba would also suffer from the restrictions. Especially since the Company previously reported that it had achieved maximum market penetration in China.

    However, the figures for the first quarter speak a different language. Analyst expectations were exceeded in terms of both sales and profits. Sales were USD 32.2 billion, up 9% from the same quarter a year ago. Diluted earnings per share were USD 1.25. Even more interesting, the Company has more than 1 billion active customers in China for the first time. More people flocked to Alibaba's platforms due to the lockdowns - fewer clothing and electronics were purchased, but more groceries and drugstore supplies. Management expects the supply chain issues to slowly resolve in the coming months.

    After the numbers, the stock put on a rally that took the stock to USD 95.09. The share formed a head and shoulder formation 2 days earlier, which was then confirmed by the rise. If the break of USD 102.69 succeeds, a test of USD 124.11 is likely. A total of 40 analysts cover the stock, and the majority see the share as a buy. The average price target is around USD 154. In contrast to its competitor Amazon, the stock is valued much more favorably, which is due to the political situation.


    After the recent decline in the markets, promising stocks have what it takes to double. First and foremost is Aspermont, which is performing well operationally and has developed new business areas or regained them after the Corona Crisis. Second place goes to Alibaba. Even if there are political uncertainties, there is no question that China will be the largest economy in the long term. Alibaba will benefit disproportionately from this. Even though Nvidia is on the move in many trend markets, the stock is still not fundamentally cheap. It would have to climb above its last high for it to double.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by André Will-Laudien on June 17th, 2024 | 06:45 CEST

    Acute threat? Armaments and high-tech in the crosshairs: Aixtron, Almonty Industries, Rheinmetall and Hensoldt

    • Mining
    • Tungsten
    • hightech
    • Defense
    • armaments

    The recent European elections have enabled the conservative camp to make significant gains. Undoubtedly, a whole bouquet of issues has led to the so-called "shift to the right". In times of war, however, the neutral observer may not be surprised that the self-proclaimed peace parties, represented by the colours red and green, have lost considerable ground. After all, the competence for peacemaking and security in Europe tends to be found in the conservative camp. The capital markets currently favour high-tech and armaments, orders are booming, and growth is assured for years to come. It is now crucial for stock market players to take a closer look at these sectors, as the high-yield performers of the first half of the year appear to be correcting more strongly. What will happen here in the medium term?

    Read

    Commented by Fabian Lorenz on June 13th, 2024 | 07:00 CEST

    Stocks on the verge of a breakout! Rheinmetall, TUI, Desert Gold

    • Mining
    • Gold
    • Defense
    • Travel

    Will Rheinmetall soon reach a new all-time high? An insider thinks so and is buying a sizeable block of shares in the armaments group. The news situation could hardly be better for the DAX-listed company. The price of gold could also break out and rise to USD 2,700 in the next wave, according to a renowned expert. Desert Gold should benefit noticeably from this. The Company's market capitalization is only a fraction of the proven gold resource, and drilling continues. And what is TUI doing? The share is not making any real progress. However, it should benefit from the FTI collapse, and the crucial summer season brings a high booking volume.

    Read

    Commented by André Will-Laudien on June 12th, 2024 | 07:15 CEST

    After the election, buy a combustion engine now? Mercedes-Benz, Volkswagen, Globex Mining and BYD on the test track

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • Batteries

    The crushing defeat of the green camp in the EU elections has caused a stir in the automotive industry. Will the ban on combustion engines be overturned in favour of a general openness to technology? It is well known that the best conventional vehicles come from Germany, and they are demonstrably no more harmful to the climate than current e-vehicles. Voters have finally lifted the green veil, and the doctrine of the know-it-alls is now in retreat. From a climate perspective, investing in battery storage systems makes sense, but they do not necessarily have to be installed in vehicles. How can investors benefit from the current situation?

    Read