Close menu




May 13th, 2021 | 10:35 CEST

Steinhoff, Sierra Growth, Vantage Towers - Don't sell in May

  • Investments
Photo credits: pixabay.com

Upwards. The shares of the companies mentioned should move in this direction, even in the short term. The wide-ranging menu of opportunities has something for every taste: the still little-noticed "infrastructure stock" Vantage Towers is one of Europe's leading radio mast operators, which analysts still believe has a lot to offer. The permanent restructuring case and penny-stock Steinhoff seems to have finally burst the knot. Speaking of bursting, with new project progress, the exploration Company Sierra Growth could take off virtually overnight.

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: NL0011375019 , CA8263191055 , DE000A3H3LL2

Table of contents:


    STEINHOFF INTERNATIONAL HOLDINGS NV - When will the liberation blow come?

    For a long time, the German-South African trading group was considered a major player in the European furniture industry until air bookings in the billions came to light and pushed the Group to the abyss. The holding company saved itself with two protective shield proceedings and has been negotiating a future with creditors for some time. The chain, which was known in Germany for Poco, among other things, has several valuable subsidiaries with strong regional positions.

    The subsidiary Pepco is soon to go public on the Warsaw stock exchange. The European activities combined in the Pepco group and fully owned by Steinhoff can still be subscribed until May 14. Steinhoff plans to sell 101.3 million Pepco shares in a price range of 38 to 46 zloty (EUR 8.30 to 10.10). This values the Company, which is primarily active in Eastern Europe and the UK, at EUR 4.8 billion to EUR 5.8 billion. The first day of trading is scheduled for May 26.

    The gross proceeds of just over EUR 1 billion are to benefit creditors. In addition, the Australian subsidiary Fantastic Furniture is to be listed by the end of the year and ownership of the South African Group Pepkor, in which Steinhoff currently holds 68%, is to be reduced. The IPO of Pepco is a first and crucial step for Steinhoff shareholders. The Company is presently valued at EUR 490 million.

    SIERRA GROWTH CORP - Revaluation in sight?

    Sierra Growth is a junior exploration Company engaged in acquiring, exploring, and developing early-stage resource projects and currently operating projects in Peru and Nevada. Its focus is on silver, copper, gold and molybdenum. In mid-April, the Company reported that samples on the three Nevada concession areas had confirmed high gold and silver mineralization.

    The three concession areas in the US state of Nevada include Glitra/Sat, Mildred/B&C Springs and Betty East. Results from the Mildred property are particularly encouraging. Highlights of the results to date include grab samples of 26.6 g/t gold and 78.6 g/t silver and 667 g/t silver, and 0.41 g/t gold at the mine site. In addition, high grades of base metals (copper, zinc, lead) and trace elements (including bismuth, tellurium, tungsten) were discovered along with anomalous gold and silver.

    Based on the historical and recent results and the nature of the concession areas within well-documented mineralized intervals with high gold and silver values, management believes that high-quality exploration targets can be defined during the subsequent phases of exploration. As a result, the likelihood of discovering a significant mineral deposit is increasing considerably. Should the early-stage projects deliver relevant news in the coming months, then the shares of the Canadian Company have considerable upside potential. The Company is currently valued at only CAD 12 million.

    VANTAGE TOWERS AG - Index rise in June, analysts advise buying

    Almost two months ago, the radio tower division of the British telecommunications group Vodafone ventured the step to the Frankfurt Stock Exchange. At the time, the subscription price of EUR 24 was at the lower end of the book building range of EUR 22.50 to EUR 29. In general, many newcomers to the stock market have found it difficult to achieve high IPO prices in recent weeks. MBB subsidiary, Friedrich Vorwerk Group SE, a leading provider of energy infrastructure solutions for gas, electricity and hydrogen applications, had to accept the lower point of the subscription range at EUR 45. Meinauto even recently canceled its IPO. Together with its British financial investor Hg, the Company decided against the IPO at short notice. The reason given was "the unfavorable market environment."

    The Vantage Towers share ended the first day of trading at EUR 25.25. The Group intends to use the issue proceeds of EUR 2.3 billion to reduce debt. The valuation seemed very favorable to us at the time of the IPO, especially compared to the Spanish competitor Cellnex. Cellnex only has a good half of the sites in its portfolio and yet has a market capitalization that is around 70% higher. Vantage Towers is one of Europe's leading radio tower operators, with about 82,000 macro sites in ten countries. The Company was founded in 2020 and is headquartered in Düsseldorf, Germany. Its portfolio includes towers, masts, rooftop sites, Distributed Antenna Systems (DAS), and small cells. The Company generates revenue by building, operating and leasing this passive infrastructure to Vodafone and other wireless network operators. Because of the predictable returns, such business models are popular with institutional investors.

    At the end of April, Goldman Sachs and Deutsche Bank initiated coverage of the stock. Both banks gave the share a target price of EUR 33. Yesterday, the share reached a new "all-time high" of EUR 27. If the analysts are to be believed, a further 20% is possible. The stock will also attract more attention due to its imminent inclusion in the index in June. The entry into the SDAX is almost certain; whether it will be enough for the MDAX remains to be seen. Buy.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    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



    Related comments:

    Commented by André Will-Laudien on July 4th, 2022 | 12:25 CEST

    Attention, turnaround! Lufthansa, TUI, Desert Gold, Deutsche Bank: These stocks are taking off again!

    • Gold
    • Tourism
    • Investments

    From several perspectives, the ongoing crisis is a mammoth task for asset managers and private investors. First, after the long uptrend and the absolute boom valuation of growth stocks from 2015 to 2022, no one knows when a sufficiently high discount has been reached to re-enter. Some stocks, such as Plug Power, are very forward-looking and dependent on government contracts. Here there have already been sales valuations of a factor of 200. So is a P/S ratio of currently 12 after an almost 80% share price loss cheap or still hopelessly overpriced? We do not know because the ongoing war sets new market parameters daily. The major indices will therefore continue to search for a valuation basis in a very volatile manner. We pick out a few selected opportunities.

    Read

    Commented by Fabian Lorenz on June 29th, 2022 | 12:18 CEST

    Buy or sell? Nel, Zalando, Aspermont under analyst review

    • Commodities
    • Investments
    • Hydrogen
    • Mining

    After the heavy losses of the past months, a countermovement seems to be starting at the moment. Whether this will turn into a real summer rally remains to be seen. Buy or sell is the question. Analysts see a price potential of over 50% for Nel ASA. Even though competition from China and India is increasing. Aspermont also appears attractive at the current price level. The latest quarterly figures were positive, and the positioning of the small-cap in the booming commodities sector is promising. At Zalando, analysts react to the profit warning, and the price targets are significantly reduced. Nevertheless, some advise buying the online fashion retailer, but not everyone.

    Read

    Commented by André Will-Laudien on June 24th, 2022 | 11:19 CEST

    TUI, Pathfinder Ventures, Lufthansa - The travel market is back - where are the share prices?

    • travel
    • Investments
    • Camping

    The travel market has changed dramatically since 2019 in light of the Corona pandemic. Due to the most extensive pandemic standstill in 2020, the capacities for flights, rail traffic and accommodation were adjusted downwards dramatically. Major cost reductions occurred primarily through de-occupancy and staff reductions. Travel companies cut their basic capacity utilization with partners to such an extent that many smaller operations had to pull out of the race, and large corporations could only survive with extensive state aid. Now, however, the situation has turned 180 degrees and demand for travel is exploding. However, this time it seems difficult to ramp up the reduced capacities in line with demand. We look at the opportunities of three typical industry players.

    Read