May 9th, 2022 | 12:50 CEST
Progress at any price! Mercedes-Benz, BrainChip, Varta
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"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Mercedes-Benz: Market still has doubts
Mercedes-Benz was long considered a typical representative of the old economy. It was also fitting that many C-Class and E-Class drivers belonged to the older generation. But that has changed. Mercedes-Benz has transformed itself from a carriage for pensioners into a dream for young people. Mercedes-Benz is also way ahead when it comes to new technology. Electrification is advancing, and the Swabians have a lot to offer when it comes to driving assistants. In some areas, the solutions from Sindelfingen are even ahead of the competition from the USA. The only thing is that they want to do it particularly thoroughly, which is why the technology is not yet on the market.
After Mercedes-Benz recently mastered a journey of over 1,000 kilometers in an electric car for the first time, the Company is also regarded by many investors as a potential innovation driver. But companies that rely on new technology are also particularly vulnerable to delivery problems. Although CEO Ola Källenius has promised an improvement in the second half of the year, delivery problems with chips continue to weigh on the stock. The share continues to weaken and recently failed to return to positive territory on a sustained basis.
Car manufacturers fight for market share - will BrainChip benefit?
"Having is better than needing." That could be BrainChip's motto. The Company stands for innovative AI chips that are particularly energy-efficient and whose architecture is based on the human brain. The chips from BrainChip only think when they are needed. Months ago, a future study revealed that the recognition of the "hot word" "Hey Mercedes" as the trigger for voice recognition in modern computer systems for cars works five to ten times as well when smart chips such as those from BrainChip are used.
The share reached prices of more than EUR 1.60 shortly after the turn of the year, making many private investors happy. However, the Company is a growth stock and is currently making hardly any sales - it is the fantasy of good business in the future that is driving the prices here. After falling to around EUR 0.70, the stock could slowly become interesting again. Growth stocks are currently having a harder time, but industry giants worth billions are fighting for market share in the car market. Positioning oneself around revolutionary chip architecture should not be a mistake, even in the current market environment for carmakers. BrainChip offers a good product and a lot of imagination - but the stock is still a hot potato.
Varta: I don't think I heard you right!
The Varta share was also a hot potato for a long time. The market saw the stock as Germany's e-car hopeful. On top of that, investors got a lot of know-how and an established business around button cells for hearing aids and other batteries for entertainment devices. But the expectations of mainly private investors were too high: prices of EUR 165 were too much. In the meantime, Varta is trading at under EUR 90 again and no longer looks particularly interesting from a chart perspective. Even if electromobility is the future, it is unclear whether Varta will be able to keep up with the competition from the Far East. In Germany, too, there have long been innovative suppliers who have committed themselves to battery technology. The share is currently uninteresting.
Even if the markets are nervous these days and supply chains are sputtering - the battle for market share continues in the automotive industry. While yesterday's chips are in short supply, it can make perfect sense for automakers to position themselves in tomorrow's chips. Here is where BrainChip comes in as a company with an excellent technological position. While Varta is also considered technologically advanced, the market rightly has its doubts given the competition.
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.
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