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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


31. August 2021 | 12:16 CET

Square, Aspermont, flatexDEGIRO - FinTechs: Top or Flop?

  • Fintech
Photo credits: pixabay.com

Many FinTechs have emerged in recent years to put the fear of God into traditional banks with their dusty business models. As with many disruptive business models, the spread of the Internet and smartphones provided the basis for scalable, rapid growth. In addition, sufficient venture capital was available. Valuations in the billions, even before an IPO, were and are not uncommon. In addition, cryptocurrencies began an unprecedented triumphal march. In some places, the sword of Damocles of regulation hovers over the industry and not every Company will reach the finish line. Too many advance praises are priced into some prices. Who will be among the winners?

time to read: 4 minutes by Carsten Mainitz
ISIN: SQUARE INC. A | US8522341036 , ASPERMONT LTD | AU000000ASP3 , FLATEX AG NA O.N. | DE000FTG1111


Karim Nanji, CEO, Marble Financial
"[...] 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

Full interview

 

Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

About the author


Square Inc - Strong Q2 numbers, acquisition of Afterpay announced

One of the fastest-growing FinTech companies is Square Inc. from San Francisco, California. The shares of the payment service provider reached a new all-time high of around USD 280 when the Q2 figures were published at the beginning of August. The share price is currently slightly below this level. The Company thus has an impressive market capitalization of USD 123 billion.

Square initially started as a peer-to-peer payment network via its own CashApp, soon adding options for trading stocks and bitcoin as well as a linked debit card. The latter features led to a sharp increase in user numbers. The number of active users of the app increased from 36 million to 40 million in the past twelve months, and sales via the app climbed 177%. The increasing share of low-margin bitcoin trading pressured the gross margin, but gross profit still climbed by an impressive 94%.

In the future, more features will be added to the app. The CashApp ecosystem will gain access to Credit Karma's tax return services and get Afterpay's buy-now-pay-later (BNPL) service "implanted." Square is looking to acquire the Australian Company for USD 29 billion.

Although Square's newsflow is more than impressive, the question is whether the Company should be considered too expensive. The Company is currently valued at 6 times expected revenue. The P/E ratio for the current fiscal year is 360 (!), but according to analyst consensus, it should drop significantly in the next few years. The 2023 P/E ratio will then be 154. Square is undoubtedly a success story. Only the future can show whether the prices called today are justified.

Aspermont Ltd. - Entry into the FinTech business

If you are familiar with the name Aspermont, you will wonder why the Company appears under the FinTech heading. After all, Aspermont is known as a media group and, in that capacity, as the publisher of the two longest-serving regular publications for the mining sector, the Mining Journal (founded in 1835) and Mining Magazine (founded in 1909). However, anyone following the Aspermont share over recent years will also know that the Company suffered a severe slump in its print and event business in 2015. It, therefore, had to initiate a turnaround towards a digital company from 2016 onwards.

The Company initially focused on the areas of databases (including over 7.5 million addresses of decision-makers) and XaaS (Anything-as-a-Service). In 2020, the new Virtual Event & Exhibition (VEE) division was launched. Aspermont managed to acquire more than 100 new business customers at its launch, including high-profile companies such as Dassault, Hexagon, S&P, Olympus, SAP and Honeywell. The strategy was not just to win these companies for one or more virtual events but to retain them in the long term through bundling and cross-selling. And this has been successful. According to the recently published Q3 figures, Aspermont increased its sales by 11% compared to the same quarter last year. The XaaS (AUD 2.0 million, +25%) and data (AUD 0.3 million, +140%) subsegments grew the most. Gross margin climbed from 58% to 65%, while gross profit increased by 22% to AUD 2.8 million. This success has made Australians want more.

Thus, the Company announced its intention to invest the majority of the quarterly profit in further growth. Part of this strategy is to enter the FinTech sector. The Australians recently announced the launch of a platform to raise capital for savvy investors in cooperation with Spark Plus Pte. Ltd, a consultancy and specialist in roadshows for Asian companies with offices in Singapore and Tokyo, and International Pacific Capital, a Sydney-based securities dealer established since 1987.

Aspermont will hold the largest share of 44% in the new platform. The Company hopes that the data from its databases will play a key role in supporting the new platform's success. On the other hand, there is also cross-selling potential for its product portfolio. The analysts of GBC certify Aspermont with a price goal of AUD 0,09; this corresponds to four and a half times the current price level.

flatexDEGIRO - Profit-taking, an announcement of stock split

Despite the best half-year in the Company's history, the price of flatexDEGIRO shares sank unusually sharply after announcing preliminary results at the beginning of August. At the same time, the 2.2% increase in EBITDA margin to 47.6% and a 127% increase in revenue looked very good. Investors had perhaps been disappointed that customer growth was down at a high level. However, management seems to be very confident of its strategy and used the recent share price slide to stock up in a big way. The analysts seem to see it the same way, with the vast majority of them recommending the share as a buy. The average price target is around EUR 136, which corresponds to an upside potential of 50%. The recent announcement of a share split ratio of 1:4 at the beginning of September should give the stock more momentum again soon.


Square is without a doubt an excellent company with great potential. However, at the current valuation, we lack a short-term price fantasy. From a timing perspective, flatexDEGIRO is extremely exciting. After the profit-taking, the share price could recover in the short term with the stock split. With Aspermont, investors have the chance to profit from the entry into a new business segment of the established Company. Analysts believe that this potential is far from being priced into the share price.


Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

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.


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08. September 2021 | 13:18 CET | by Stefan Feulner

BYD, Aspermont, Salzgitter AG - Extreme surge in demand

  • Fintech

The improved mood in the economy and the reviving business cycle brought companies record results in the second quarter. Above all, electric car manufacturers shone with significantly rising sales figures. In June alone, the number of new registrations in Germany climbed 311% year-on-year. The switch from combustion engines to electric cars is only just beginning. The percentage of battery-powered vehicles on German roads is just 12%.

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19. February 2021 | 09:33 CET | by Nico Popp

PayPal, Marble Financial, Ferratum: Fintech picks up speed

  • Fintech

The world is becoming increasingly digital - only retirement planning and even banking are still partly stuck in the 1980s. We see this whenever we conduct banking transactions that are not commonplace. Examples include cashing checks or transferring money abroad. But there is a remedy: In recent years, more and more companies have taken analog areas related to finance and made them digital and better from the customer's perspective. This also opens up opportunities for investors.

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