08. September 2021 | 12:59 CET
TeamViewer, TalkPool AG, Deutsche Telekom - This is the way to the top!
When the dot-com boom took off at the turn of the millennium, many immature and unpromising business models came onto the market. Every idea was made ready for the stock market - then the techno-crash followed, and many companies disappeared from the radar. The COVID-19 pandemic triggered a worldwide digitalization push - many new achievements now determine the working world of every individual and change society as a whole. The focus is now on: Distant Working, Internet of Things and Communication. We take a look at the cards of three protagonists.
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ISIN: TEAMVIEWER AG INH O.N. | DE000A2YN900 , Talkpool AG | CH0322161768 , DEUTSCHE TELEKOM ADR 1 | US2515661054
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.
TeamViewer - Is the push coming with Christiano Ronaldo?
TeamViewer AG is a leading global software provider of remote connectivity solutions. Through TeamViewer's platform, many electronic devices can be connected via the Internet of Things to enable remote control, management and interaction between people and devices. Taken together, these are useful technical combinations for modern types of collaboration. TeamViewer's modular architecture is cloud-based and has been activated on more than two billion devices.
The Company took a bit of a hit on the stock market in the summer because a lot of money has already been spent on expensive sponsorship contracts for the Premier League and Formula 1, among others, for 2021. That drives up costs and puts pressure on the profit margin. Manchester United's sponsorship, in particular, was not initially well-received on the market, as it was considered far too expensive. However, with the recent signing of Cristiano Ronaldo (CR7) by the Red Devils, the agreed advertising euros have significantly increased in value for TeamViewer, as CR7 is one of the most media-effective representatives of his profession. Nevertheless, several factors remain decisive for the overall result: What are the benefits of the cooperation with SAP? Will the breakthrough in augmented reality applications be achieved?
The latest insider purchases by the management certainly give reason for optimism. The breakout above EUR 27.5 must now be confirmed from a chart perspective because the recent rise above EUR 29 could establish a new upside scenario. With a significant breakout, the price target would then be at least EUR 34. Joining the insiders makes perfect sense here.
TalkPool AG - Internet of Things in its purest form
The Swiss Company TalkPool AG also operates in the world of international communication solutions. Since TalkPool was founded in 2000, managed telecommunications services have been the Company's core competencies. Over the years, however, it has also built up valuable expertise in the field of Internet-of-Things (IoT) and is now known as a respected partner in this area. The Telecommunications Network Services business unit covers core competencies such as planning, implementing, and maintaining mobile and fixed telecommunications networks.
The service offering is based on customized yet cost-efficient and flexible services from equipment manufacturers and telecom operators worldwide. Thanks to state-of-the-art technical know-how, many years of experience and an agile business model, TalkPool offers networked IoT solutions. Behind this are end-to-end solutions for smart buildings and cities focusing on environmental control, energy-saving and damage prevention.
In the second quarter, the result of TalkPool's turnaround program was reflected in positive net income. While Corona still impacted the overall business, all market units ended the quarter in positive territory. The integration of the newly acquired Home Solutions into the Group and the merger with TalkPool AB gained attention and speed. IoT solutions and services already accounted for 22% of TalkPool Group's total revenue in the second quarter. Most of this came from Home Solutions' and TalkPool AB's smart buildings business in the Swedish market.
In May, TalkPool communicated its outlook with the Company's revised strategy and new financial targets for 2021 to 2025. The Company is expected to grow rapidly in the coming years thanks to improving market conditions, a strict sales focus and sustainable technology. TalkPool has set a revenue target of EUR 48 million and a corresponding EBITDA margin of 11%-14% for 2025. In May, it presented consolidated financial statements showing net revenues of EUR 21.2 million and a net loss of EUR 968 thousand for 2020.
Increasing interest in TalkPool from German-speaking investors led to listing TalkPool shares for trading on the Frankfurt Stock Exchange. The Company's launch on Nasdaq First North dates back to 2016, and the stock has already gained 15% since its debut in Germany at the end of June, but trading is still very thin.
Deutsche Telekom - Valuation comes via the US subsidiary T-Mobile
Up over 70%, Deutsche Telekom is a clear winner in the DAX since March 2020, with much of the valuation coming from its lucrative US business. Now the parent company is stocking up heavily at T-Mobile USA. To finance the transaction, which costs around EUR 6 billion, Telekom is issuing new shares and selling its business in the Netherlands.
Following a multi-part share deal, the stake in the lucrative US subsidiary increases by around 5.3 percentage points to now 48.4%. The increase is part of the goal of securing more than half of US T-Mobile and thus consolidating the existing control over the subsidiary and consolidation in the long term. It is based on several deals: The Bonn-based Company intends to acquire around 45 million T-Mobile US shares from the Japanese conglomerate SoftBank through a capital increase in return for a contribution in kind. In return, SoftBank will receive about 225 million new Deutsche Telekom shares and, with 4.5% of the outstanding shares, will become Deutsche Telekom's second-largest shareholder after Germany. The new Deutsche Telekom shares will be valued at EUR 20, well above the current share price. The transaction is expected to be completed by October 2021.
In the current share swap, Telekom is exercising around 26 million fixed-price options and is also buying about 19 million bills at USD 140.6. The average price of all newly acquired shares is just under USD 118, well below the current level. T-Mobile US is currently valued on the stock market at the equivalent of just under EUR 143 billion. Accordingly, the current 43% package has an investment value of almost EUR 62 billion. However, at a share price of EUR 17.9, Deutsche Telekom itself is currently only worth EUR 85 billion. Buy!
The COVID-19 pandemic triggered a global digitization push. Internet-savvy business models and mobile platforms are gaining large market shares as a result. TeamViewer and Deutsche Telekom are well-positioned. TalkPool AG is already thinking about networking all areas of life with the Internet and offers state-of-the-art IoT infrastructures.