28. September 2020 | 14:57 CET
Palantir Technologies, Velocity Minerals, SNP Schneider-Neureither & Partner: where do the opportunities lie now?
Last week investors were shaken from severe market volatility. While the Dow Jones was able to make up almost all its losses by the weekend, losing just under 2% on the balance and the Nasdaq even gaining just under 2%, investors had to put up with a decline of around 5% in the Dax and around 4.5% in the price of gold. So where do the opportunities lie now?
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ISIN: US69608A1088 , CA92258F3007 , DE0007203705
Palantir Technologies - An eagerly awaited first listing
With Palantir Technologies, a much-discussed tech company enters the stock market this Wednesday. The company will be placed directly on the market without a book building process. Market observers expect a valuation of around USD 22 billion. Citadel Securities will accompany the transaction as a market maker. Citadel had already accompanied Spotify and Slack in their direct placements in the past.
The data analysis specialist, founded in 2004 and based in Denver, Colorado, has several prominent founders and investors on board, such as Peter Thiel, co-founder of PayPal. Its client base includes government institutions, security agencies, and secret services.
In the run-up to the listing, the distribution of voting rights and company valuation was hotly debated. Different classes of shares give the founders a disproportionate number of voting rights. Palantir expects to achieve a turnover between USD 1.05 billion and 1.06 billion in the current year, which would correspond to a growth of more than 40 percent compared to the previous year. Should a valuation of USD 22 billion be achieved, this would correspond to more than 20 times the turnover in 2020. We are excited.
Velocity Minerals - A favourable valuation of the share
The Canadian-based gold exploration and development company, Velocity Minerals, is focused on the exploration and development of an emerging gold district in south-eastern Bulgaria. The company's strategy is to develop a low-cost operation in which multiple projects deliver gold concentrates to an existing central processing facility.
The news flow in recent weeks has been very positive. Drilling in the "Kazak" zone has discovered near-surface and high-grade gold grades. Kazak is located approximately 2km south of the Rozino Gold Project, for which a feasibility study was only published in August. This study demonstrates the potential of the project with a net present value of CAD 163 million: Firstly, the study assumes a gold price of USD 1,500, which is well below the current level. Secondly, new exploration zones such as "Kazak" are not included in the calculation.
Given the weak gold price in recent days, the small price setback is understandable. With a price of CAD 0.425, the share is valued at around CAD 50 million. This offers investors a favourable opportunity to build up and expand their positions.
SNP Schneider-Neureither & Partner - Another large corporation uses SNP solutions
SNP went public in 2000. Since then, the Heidelberg-based company has become the world's leading software provider for managing complex digital transformation processes. With its proprietary software, SNP accelerates the secure transformation of IT landscapes and data structures. This saves time and money for customers. Companies are thus more agile and can adapt to ever-faster challenges.
Last week Fujitsu and SNP announced an agreement on strategic cooperation and the use of SNP solutions. The goal of the strategic partnership is to enable Fujitsu customers to automate, flexibly, and securely transform their IT landscapes and data structures to SAP S/4 HANA. The agreement has a minimum contract term until the end of 2024, which means that SNP will receive at least a turnover in the lower double-digit million euro range.
At the end of August, SNP had confirmed its outlook for the full year 2020, according to which consolidated sales of between EUR 145 million and EUR 170 million and an EBIT margin in the mid-single-digit percentage range are planned.