06. September 2021 | 12:17 CET
Paion, Diamcor, DeFi Technologies - This is where the music plays
After the Fed announcements, the DAX and Dow moved sideways, despite a rise at the beginning of last week. Many stocks in these indices are now also considered fundamentally expensive if one follows the standard work of fundamental analysis by the Graham and Dodd Model, which roughly speaking sees a fair value for stocks with a price-earnings ratio of a maximum of 15. If you want to bring performance into your portfolio, you need stocks that are not in the direct focus of analysts. If there is an interesting story behind it, you can get a booster in your portfolio at an early stage. Today, we highlight three shares with interesting news and stories.
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ISIN: PAION O.N | DE000A0B65S3 , Diamcor Mining Inc. | CA2525312070 , DeFi Technologies Inc. | CA24464X1069
Paion - Sales jump strongly
Paion is a specialty pharma company that focuses on anesthesia and intensive care. More and more drugs are now receiving approval in other countries. Currently, there are three important preparations: GIAPREZA, XERAVA and Remimazolam. For the latter, the sales partner Hana Pharm received marketing authorization for South Korea on August 31. Originally, only the 50mg version was approved there, but now the 20mg version is also approved.
The product XERAVA has been offered in direct sales in the Netherlands since September 1. On September 2, it was announced that Clinigen Group PLC has exclusive rights to distribute Paion AG's products in the UK. The figures for the first half-year were mixed. On the one hand, sales increased by EUR 3.52 million to EUR 3.62 million compared to the previous year, on the other hand, a minus of EUR 10.44 million was reported.
For a research-based pharmaceutical company, losses are the rule at the beginning. With three marketable products now, the tide is slowly turning and sales are already increasing significantly. The analysts at Frankfurt Main Research expect losses in the next two years, but the break-even point should be reached from the end of 2023, at the latest in 2024. Therefore, the price target was raised to EUR 4.
Diamcor - Expands production of diamonds
What woman would not be delighted with a diamond ring from Tiffanys? The chances of the diamond coming from Diamcor have increased significantly since Tiffanys made a strategic investment of USD 10 million in Diamcor. Tiffanys has thus secured a right of first refusal on the rough diamonds. Diamcor focuses on identifying, acquiring and operating diamond projects that the Company can quickly bring into production to generate cash flow.
The experienced management team acquired the Krone-Endora project in South Africa from De Beers, the world's largest diamond producer and trader. The area is close to one of the largest diamond mines in the world, Venetia, which produces 50% of all diamonds in South Africa. A majority of these diamonds are of gem quality. Many diamond experts believe that existing mines cannot meet the growing demand for natural diamonds. Rising prices would be the logical consequence.
Resources are reported at 1.38 million carats under the NI 43-101 standard. In the current quarter, the Company collected over USD 1.02 million with three diamond tenders. These showed that the quality of the stones is good, which is reflected in strong dollar-per-carat values. The Company is currently entering the final phase to increase the volume of processing. Once this phase is complete, production is expected to increase by 100%.
The share price has already jumped, rising from 0.08 Canadian dollars (CAD) to CAD 0.35 this year, but then consolidating to CAD 0.25. Currently, the share is at CAD 0.30 and thus has a market capitalization of CAD 22 million. If the tenders continue and the production can be increased, the Company could sell diamonds worth USD 3 million per quarter. At these values, the current company valuation is favorable.
DeFi Technologies - News all the time
The crypto market is a hot potato. Bitcoin and Co. entice with huge profits, but also significant setbacks. The technology behind it does not interest most people because that is more for techies. DeFi Technologies wants to decentralize the financial world, which is done using applications built on a blockchain. The idea is that this will make it possible to conduct transactions between people online without intermediaries or central authorities. When DeFi Technologies went public via a shell deal in January, a price firework catapulted the stock to CAD 3.25. After that, bitcoin crashed, and so did the DeFi share. On July 20, it was trading at CAD 0.48.
With the announcement of Russell Starr as Executive Chairman, everything changed. Suddenly there was news again. On August 9, the letter of intent to acquire DeFi Yield Technologies was announced. The same was true for Protos Asset Management GmbH on August 12. The wholly-owned subsidiary Valour managed USD 107 million in exchange-traded notes in the second quarter, as announced on August 16. Just three days later, the figure had risen to USD 140 million. On August 24, the Company joined the DeFi Alliance, where Coinbase is also active. Finally, on August 31, it was announced that the Company could generate 300,000 Shyft tokens from its Shyft Network node. The Shyft token is currently trading at USD 1.05.
The shares marched up to CAD 2.45 on the back of the rising crypto market and ongoing newsflow. Currently, the stock has risen too much, and one should urgently wait for a consolidation. It remains to be seen how sustainable the business model is and whether the price of the Shyft token will remain stable. If the price of the token jumps, rising share prices would be expected.
All three companies have an exciting story. Paion's sales are picking up strongly, and the Company now has three products on the market that need to be marketed globally. Diamcor has an excellent manufacturing base and a reputable partner in Tiffanys on its side. At DeFi Technologies, much depends on the crypto market; the share price currently resembles a roller coaster ride. One should act very cautiously here.