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October 20th, 2022 | 14:03 CEST

Shock inflation, what is left in the wallet in 2023: TUI, Pathfinder Ventures, Deutsche Bank, Commerzbank

  • RV
  • Camping
  • Travel
  • Banking
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In addition to an inflation rate of almost 10%, the first increases in utility costs are now fluttering into citizens' mailboxes. As already feared, the extreme increase in the cost of energy and electricity is putting a heavy strain on monthly budgets. Whether there can still be a vacation in 2023 will be decided by the length of the Russia conflict, which has kept fossil energy prices high so far. As investors can easily see, the high oil and gas prices are contributing to negative effects in almost all sectors; especially in winter, the supply situation in Central Europe is likely to be very tight. Which stocks should investors watch out for now?

time to read: 4 minutes | Author: André Will-Laudien

Table of contents:

    Joe Bleackley, CEO, Pathfinder Ventures Inc.
    "[...] In addition to campsite fees, Pathfinder Ventures has put itself in a position to offer all of these sought-after camping solutions. The only thing they don't sell is the RV itself. [...]" Joe Bleackley, CEO, Pathfinder Ventures Inc.

    Full interview


    TUI - What will the summer travel season be like in 2023?

    TUI, the largest European travel provider, is clearly linked to the disposable income of the population with its business development. For ordinary consumers, high prices for essential goods, as well as electricity and heat, have an extreme impact. According to Statista, the average net income of an unmarried employee in Germany is around EUR 25,500 per year or the equivalent of EUR 2,125 per month. If, because of the sharp increases in rents in recent years, utility costs now also have to be absorbed, at plus 100 to 300%, consumer and travel budgets will likely come under extreme pressure.

    After a long-lasting pandemic, strict entry regulations and hygiene controls, travel is now almost as possible as it was in 2019. However, as a large individual travel provider, TUI is dependent on people's purchasing power and willingness to spend. Vacations are only booked when the mood is good, and funds are available. However, if household costs continue rising, many travel plans will likely be abandoned again at short notice. According to current surveys by YouGov, 92% of Germans still want to travel in 2023. Assuming this result as a given, TUI would probably be in for a good travel year.

    The TUI share has already gone through a few capital increases, but the price kept falling further south. In the meantime, the value of equity is significantly below the current debt, and TUI is therefore dependent on a positive free cash flow to successively reduce its debt. Currently, the share price of EUR 1.43 is only just above the all-time low of EUR 1.17. Investment bank Berenberg had recently downgraded TUI to "Sell". Whether the "heat escapees" in the coming winter bring the balance sheet up to speed remains highly speculative!

    Pathfinder Ventures - Recovery can be this simple

    An interesting travel stock is on the price list with Pathfinder Ventures in Canada and Frankfurt. The campsite operator has developed a unique business concept for family-oriented travel in nature. The trend for recreation with additional amenities is currently finding more and more followers. The Company's management is very satisfied with the bookings for the last Thanksgiving weekend. On average, occupancy at all properties has increased to an encouraging 73%, an 18% increase over the previous year. Pathfinder Camp Resorts at Fort Langley and Agassiz-Harrison had occupancy rates as high as 93% and 81%, respectively, from October 7-9. Here, the right concept ensures high occupancy.

    "The trend and demand for outdoor recreation is increasing as people seek outdoor activities. As the occupancy numbers show, the RV and camping industry in British Columbia is experiencing strong growth. Customers are coming to camp earlier in the year and staying into the fall months," said CEO and founder Joe Bleackley. In fact, with extension options into the winter, more and more people are moving into their RVs permanently. Pathfinder has developed unique supply concepts for such needs, and demand for this supply is growing rapidly. Therefore, Pathfinder is currently examining specific locations suitable for longer-term RV stays.

    Pathfinder is strategically exploring new ways to attract vacation and recreation seekers. Digital booking platforms, modern reservation systems and entertainment offerings for young and old have been installed virtually overnight at historically established sites. The robust demand for decelerated vacation concepts should continue to drive business at Pathfinder in the future, and the expansion opportunities beyond British Columbia are also unique.

    Deutsche Bank versus Commerzbank - Loan books likely to come under pressure

    It is not only private households suffering from the dramatic cost increases. Over 97% of companies in Germany are classified as SMEs. They employ more than half of all employees in the country and generate around one-third of sales of all companies. But inflation is leaving its mark. A medium-sized company today has to calculate with completely changed input costs, which can only rarely be converted into sales prices. There are countless examples: many an old-established bakery is thinking about closing down because a 70% increase in the price of baked goods can no longer be passed on to customers. How sad!

    Worst hit are energy- and electricity-heavy manufacturing operations, which have been suffering for months anyway from strained supply chains and are being pushed into the red by little ability to pass them on on the sales side. The economic crisis now brewing is drawing attention to the balance sheets of Germany's major commercial banks. At Deutsche Bank, 2nd quarter pre-tax profit rose to a 12-year high of EUR 1.5 billion, but loan loss provisions increased only moderately to EUR 233 million from EUR 75 million in the prior-year quarter. At Commerzbank, the operating profit increased from EUR 32 million to EUR 746 million in the second quarter, with the Mittelstand division mBank contributing EUR 103 million. For the third quarter, mBank expects additional charges of EUR 210 to 290 million for "credit holidays" and around EUR 30 million for the replenishment of a fund for borrowers in payment difficulties.

    Both banks have maintained their slightly positive outlooks for 2022, subject to a gas emergency in Germany not materializing. Share prices are currently rising against the general sell-off trend and are moving away from the lows in July. Opportunities are currently valued higher than possible risks on the horizon.

    With the recent corrections, the stock market offers several entry opportunities. Financial stocks stand or fall with the economy, which so far still appears robust. In the travel industry, the business model remains trump. Pathfinder Ventures presents an interesting concept that is for people and nature.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    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

    Related comments:

    Commented by André Will-Laudien on September 22nd, 2023 | 07:20 CEST

    Recalculation! These are the bare figures: TUI, Saturn Oil + Gas, Deutsche Bank - Buy prices non-stop!

    • Mining
    • Oil
    • travel
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    Companies do not always have good figures in their baggage. Analysts listen very carefully to the words of those in charge. Often, it is only a minor sentence that changes entire valuations. TUI is slowly approaching pre-COVID figures. Saturn Oil & Gas must backtrack slightly because of substantial forest fires in Alberta, and Deutsche Bank aims to finalize the Postbank project in 2023. All three stocks offer good buying opportunities because the long-term prospects are quite convincing.


    Commented by Fabian Lorenz on September 13th, 2023 | 09:05 CEST

    Nel share on the verge of recovery? Tui and GoviEx Uranium with a turnaround

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    Whether in NOK or EUR, the Nel share chart is severely battered. Does this also apply to the Norwegian company itself? Currently, the answer is somewhat mixed. Nel once again proves that the strategic prospects for hydrogen are huge, but the Norwegian's losses are high, and shareholders must expect dilution. In contrast, GoviEx Uranium is looking good at the moment. The Canadians are the only uranium developer with two African projects ready for development and near-term production. Chart-wise, the stock is turning around, and the market capitalization does not seem too high. Tui is doing well operationally, and the summer season should make the tourism group's cash register ring. Analysts remain divided, however.


    Commented by Nico Popp on August 21st, 2023 | 08:00 CEST

    China's shadow banks send first shock waves: Deutsche Bank, Allianz, Viva Gold

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    To many market observers, China was considered the true powerhouse of financial markets. Even when US growth was reaching its limits due to crises, the Chinese continued scoring points with growth rates well above the 5% mark. But the situation has changed. China is increasingly becoming a problem case. The Chinese real estate market is in a predicament. The situation surrounding project developer Country Garden could, much like in the case with Evergrande before, make waves internationally and put German financial institutions in a difficult situation.