03. March 2021 | 05:50 CET
ProSiebenSat.1 Media, Aspermont, Alibaba: Digital media as a multiplier opportunity
When investors think of the media industry, they often still have stories of declining circulation and dwindling audiences in the back of their minds. But they often forget that media companies have long since made a virtue of necessity and gone digital. It is precisely when traditional media companies' quality meets modern digital groups' possibilities that great opportunities arise for investors. We present three shares.
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ISIN: DE000PSM7770 , AU000000ASP3 , US01609W1027
ProSiebenSat.1 Media: More dating than TV
The ProSiebenSat.1 Media share is an old acquaintance on the German trading floor. But while the stock stood primarily for two TV stations for many years, today the Company is more than that. ProSiebenSat.1 is a big player in online dating. JP Morgan analysts recently emphasized that ProSiebenSat.1's stake in ParshipMeet is worth more than previously thought. The analysts, therefore, describe the share as a "key pick" among European media stocks.
Over the past year, the share price performance shows a steep upward trend and a return of more than 60%. Given this development, the question arises to what extent ProSiebenSat.1 stock can still be moderately valued. Currently, the market capitalization is just over EUR 3 billion. As earnings are expected to be higher in 2021, this also justifies a rising share price. However, the ProSiebenSat.1 share is no longer an insider tip.
Aspermont: Major investors get on board
The shares of the Australian media Group Aspermont, on the other hand, are much less well known - although the Company stands for renowned titles such as Mining Journal and Mining Magazine, both of which have been published without interruption for more than a hundred years. There are numerous other brands and services that Aspermont offers its customers. After challenging years, the Company has gone digital and now distributes 95% of its content on digital channels. The customers: Companies from around the world working in, or supplying to, the mining, energy, and agricultural sectors.
Over the years, Aspermont has built up a network of over seven million contacts, all of which are decision-makers in the respective companies. Aspermont intends to use these contacts to sell additional services in the future. Up to now, Aspermont has been quite accommodating toward business customers and has even turned a blind eye when several employees used access at the same time. In the long term, this could prove to be a smart move and help to bring new products to customers or adapt established subscriptions to actual usage. Aspermont sees potential in online commerce platforms, blockchain and e-learning.
Recently, the Company announced a capital increase at AUD 0.03 per share, for which trading on its home exchange in Australia was suspended for one day. The move is backed by a single institutional investor from Germany and flushes AUD 3 million into the Company's coffers. In total, the Company now has more than AUD 7 million in its coffers and plans to invest the funds in further growth. Institutional investor confidence should help further publicize the investment story around Aspermont and stabilize the share price at current levels. With a market capitalization of less than EUR 30 million, the stock is a real insider's tip.
Alibaba remains uncertain
In contrast, the Alibaba share is well-known around the globe. The Company is considered Asia's Amazon and is just as broadly positioned. A few months ago, the canceled IPO of the fintech subsidiary Ant Group caused a furor. What was planned to be the largest IPO ever had to be postponed under pressure from Beijing. The appearance of Alibaba founder Jack Ma was seemingly too self-confident for the powers that be in Beijing. In the meantime, Ant Group has restructured itself and wants to manage the IPO in a second attempt. The hiccups have not been good for the parent Company Alibaba's share price: over one year, the investment return is only 6.3%. The share remains a hot topic.