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Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


Alex Kent, Managing Director, Aspermont Limited

Alex Kent
Managing Director | Aspermont Limited
613 - 619 Wellington Street, WA, 6000 Perth (AUS)

Corporate@aspermont.com

+61 8 6263 9100

Aspermont shows the success of digitalization - Alex Kent has an agenda


27. January 2021 | 09:23 CET

RYU Apparel, Plug Power, Netflix - strength and weakness!

  • Investments
Photo credits: RYU Apparel Inc.

The stock market is alive and kicking. With a new app called Reddit, 2.4 million users with an affinity for stocks are currently clicking through various discussion channels and, with self-imposed herd instinct, buying new stocks on the price list. Formerly inconspicuous stocks such as AMC Entertainment, BlackBerry or Nokia then go through the roof with crazy turnovers. A humble statement from management often follows this: "We can't explain the attention in our stock!" - but even after the announcement of such words, the turnovers go down only slightly, and sometimes the price gains even build up. Hard-nosed hedge fund managers learn to fear when they sell completely overpriced stocks short and are subsequently steamrolled by the bull community. With GameStop's move yesterday, Melvin Capital was hit; the short community around Tesla has probably long since given up.

time to read: 4 minutes by André Will-Laudien


 

Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author


RYU Apparel - strategy rolled out, shops sold out

RYU Apparel, or "Respect Your Universe," is attracting attention as a new brand for Generation Z. The CEO Cesare Fazari takes advantage of the turn of the year, which many people are experiencing from home, to sum up his restructuring work. Through a complete reorganization, the brand relaunch in 2020 worked brilliantly, and investors were also back on the mat, paying in a total of CAD 6 million in fresh capital. Fazari intends to keep the pedal to the metal in 2021, as its long-term goal in 2030 is to establish a brand worth billions of dollars.

Looking at other newcomers from the past such as Abercrombie, Hollister or Under Armour, repeating such a brand build-up is possible in a short time. Once the hip factor has been ignited and the online community has been infected accordingly, things take off. Sometimes it's merely the right testimonial, like David Beckham for Calvin Klein back in the day. In today's categories, of course, we speak of influencers.

New at RYU is now the American wholesale, showing extreme growth rates due to the online boom. The team newly includes Grant Matzen, a seasoned sales and marketing professional with more than a decade of experience working with iconic brands in the sports and lifestyle apparel industry such as Under Armour, Vans, Quiksilver and Roxy. After building its Canadian home base, RYU is now turning its attention to building its sales and distribution teams in the US and Mexico.

New to the program is the golf division: the golf apparel design team is led by industry talent James Chapman, an expert in innovation, trends and fit with the support from cutting-edge digital 3-D design technology. Mr. Chapman is joined by Andrew Parr, as he has a diverse background in athletics. As a golfer himself, Mr. Parr has played in over 40 countries during his professional eight-year career. Mr. Parr is currently an assistant coach for the Canadian national team.

From a distance, things are going well at RYU - the times speak for the business model because even with limited movement radii, Generation Z wants to be dressed in the best possible way. In recent weeks, many hip items on the site were no longer available and out of stock. So please stock up your shelves! The RYU share also belongs in the shopping cart at CAD 0.15!

Plug Power - shorties get a raw deal

In a letter to shareholders, Plug Power comments on the current year. Apparently, in light of a massive stock rally of 1500% in 6 months, they feel obligated to provide a bit of clarity on operating expectations. On the one hand, Plug Power raises its 2021 revenue guidance, namely from USD 450 million to USD 475 million; at the same time, they also announced that 2020 went better than expected. The Company is increasing its 2024 target by more than 40% to USD 1.7 billion in total revenue. This paints a 4-year growth path on the wall.

Analysts could now start doing the math and conclude the revenue forecast, which is admittedly made without any profit statements. Plug Power is growing at a weighted revenue rate of just under 38% (CAGR). So far so good. Also calculated with a sharp pencil, the 2024 price-to-sales ratio for a current market capitalization of USD 33.4 billion is a mere 20. The Company is thus valued with a factor of 20 times sales in 4 years, or even with a factor of 72 in relation to the current day if the increased forecast is taken into account.

In 2000, it was believed that such exaggerations could never happen again, but such ratios did not even exist then. So central bank money, Robin Hood investors and momentum buyers drive fashion stocks like Plug Power into orbit and force even rational short-sellers to capitulate. Conclusion: The stock market has become a pure long-term event - the steamroller is flattening any other opinion and its representatives are successively going broke. One should look at the spectacle nevertheless to see where it leads. Unknowing is forbidden!

Netflix Inc - growth back to normality

Another representative of the online business is the media company and streaming expert Netflix Inc. Netflix beats expectations in the overall numbers with the Q4 figures, but overall growth seems to lose some steam. This was expected, as the large number of new streaming providers naturally takes a little potential out of the top dog's quiver.

Globally, some 8.5 million households signed up for a new Netflix account in the last three months of 2020. That far exceeded Wall Street analysts' expectations and the Company's forecast for the quarter. However, those exact 8.5 million net subscriber additions are roughly the same number Netflix has already added in Q4 of 2018 and 2019. In other words, the Company has simply returned to normal after some volatile previous quarters.

Speaking among partygoers, Netflix is currently having a bit of a hangover, as the return to historical growth levels suggests that Netflix has already put the pull-forward effect of pandemic subscriber growth behind it. In plain English, this means that the group will probably still be able to hold up well but will tend to move sideways without new stimulus on the strategy side. Management's forecast again calls for a net growth of 6 million subscribers in Q1. That is just as much a tick lower than in 2018 and 2019. The small discount in the share price after the announcement of the figures of 7% seems justified at the moment. After all, with revenues of USD 25 billion, Netflix also has a market capitalization of USD 250 billion.

That is easy to calculate, a factor of 10, and therefore 7 times cheaper than Plug Power. It is also easy to justify analytically: Netflix has not yet developed hydrogen TV technology. However, the broad top formation of the share between USD 480 and USD 580 since July 2020 is striking. Netflix must not announce a disappointment - otherwise, the share price is probably missing at least 25%. But maybe it will go into another Robin Hood round before that?


Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

24. February 2021 | 08:45 CET | by Stefan Feulner

Home Depot, RYU Apparel, Lufthansa - Is the bubble bursting now?

  • Investments

It seems as if Allianz CEO Oliver Bäte gave the starting signal for a sharp correction in technology stocks as well as for cryptocurrencies over the weekend. The Group CEO expressed concern about the issue of financial market stability. He said the situation, especially in the stock markets, resembles the situation before the crash of 2008 and the crash of 2000. Stock market legend Jim Cramer also said on Monday that investors should swap expensive tech companies for cheaper, traditional companies that ride the wave of economic recovery. We will see if the current correction heralds a longer trend.

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23. February 2021 | 09:25 CET | by André Will-Laudien

wallstreet:online, TeamViewer, HelloFresh - Internet Boom 3.0, the list of winners!

  • Investments

When the dotcom boom took its course at the turn of the millennium, many immature and unpromising business models came onto the market. Over time, the winners established themselves and delivered their proof of concept. Working models and mobile applications revolutionized the application layer - the Internet became ubiquitous, useful and offered many complementary applications for daily life. A selection of companies are now riding the third wave on the Internet - the so-called pandemic wave. These business models show their strengths primarily in the areas of life currently in the spotlight: Remote Banking, Distant Working and Food Delivery. We take a look at the cards of three successful protagonists.

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23. February 2021 | 09:20 CET | by Carsten Mainitz

TUI, Marble Financial, Zalando - Does it work?

  • Investments

The customer is king! Here, desire and reality sometimes diverge quite a bit. Companies that know, understand and fulfill their customers and their customers' wishes have a greater chance of operating profitably. We introduce you to three companies that focus on very different target groups. The question arises: happy customers = happy shareholders? We will tell you where the equation works out.

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