Close menu




June 8th, 2021 | 10:15 CEST

The Power of Digital Media - AMC, ProSieben, Tencent, Aspermont

  • Investments
Photo credits: pixabay.com

Sell in May and go away...in 2021, it has not yet worked. The weather in June is much warmer and the markets are rushing from one all-time high to the next. The DAX reached a new high yesterday at 15,732. The mood was outstanding, especially when it came to vehicle values. However, the excesses were slightly slowed down at AMC Entertainment. Now that the Company has placed three capital increases, some calm has returned. We look at a few special situations in this advanced bull market.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: US00165C1045 , DE000PSM7770 , KYG875721634 , AU000000ASP3

Table of contents:


    AMC Entertainment - What madness!

    AMC was again at the center of another wave of buying by retail investors last week, discussing the stock on forums like Reddit's "WallStreetBets" and breathing new life into the "meme stock" phenomenon. GameStop exemplified how to quickly gain 1,600% in January by running hot on forums. The share price has halved again after the high but is still trading at a dizzying height.

    It looks like things are going to be a little different for AMC. The Company's stock was up "only" a little over 83% last week. The movie theater operator is already up 2,160% this year, giving some major institutions paper losses of nearly USD 4 billion, according to the latest available data from S3 Partners. The high volatility in the stock is making life difficult even for options traders.

    A Reuters analysis of options data and interviews with market participants, including a Wall Street banker and a fund manager with USD 30 billion in assets, show that some institutional investors have entered into complex options trades. They are all aiming for AMC stock to turn down someday, too. Typically, irrational moves of this magnitude do not last for a long time, and some professional traders are betting against it.

    Meanwhile, AMC Company management warns that its stock is "grossly overvalued" and has already issued more than USD 1 billion in new shares. Providers such as Melvin Capital lost half of their invested assets in GameStop shorts in January, and overall hedge fund losses total about USD 11 billion, according to data from research and analysis firm Ortex. It will be interesting to see where this madness will lead.

    ProSiebenSat.1 - A long way to go, little imagination

    ProSiebenSat.1 Media SE is one of the leading European media groups. Its core business consists of advertising-financed free TV, which is received in around 50 million households in Germany, Austria and Switzerland. With 15 free and pay-TV stations, the Company is well-positioned to reach all commercially relevant target groups in German-speaking countries.

    ProSieben can be found on all digital platforms and is in permanent competition with RTL Luxembourg and Axel Springer Medien. With the U21 final at the weekend, they landed a hit in prime time with up to 39% market share. The share price took a bit of a hit last week after the broadcaster expressed skepticism about possible mergers at its annual general meeting. The shares lost 5.5%; after deducting the dividend discount, the loss was still 3%. The Italian media giant Mediaset is very interested in ProSieben and, as a significant shareholder, advocates closer cooperation between the two media companies.

    From a chart perspective, the EUR 16.50 mark should provide solid support, while the EUR 19 mark must first be overcome on the upside before the share price can continue to rise. At present, there is no urgent need for action.

    Tencent - Another IPO in the USA

    There is also strategic news from Tencent. The Chinese media and software giant presents its next exit. Kanzhun Ltd, the owner of Chinese online recruitment platform Boss Zhipin, is looking to raise up to USD 912 million in its US IPO, venturing into the market at a time when many other companies prefer to wait on the sidelines.

    If the Company can place shares at the high end of the price range, it would be the second-largest IPO by a Chinese company in the US since software firm Tuya Inc.'s USD 947 million IPO in March. Several Chinese companies have recently put their plans to go public in the US on hold as investor sentiment toward growth companies, especially from Asia, has soured and IPOs have been unsuccessful. Insurtech firm Waterdrop Inc. has fallen 30% below its IPO price since its debut in early May. Waterdrop launched on the stock market despite warnings from the Chinese government, and an official investigation into its business model from Beijing has already been threatened.

    The Tencent share can currently defend the range of EUR 60 to 66 only, with difficulty. A chart-technical buy signal is waiting at the EUR 72 mark. At EUR 55, it should end on the downside.

    Aspermont Ltd. - Strong growth in the user base

    Aspermont Ltd. from Australia is a specialist in digital content and marketing. The media group represents a well-connected capital market companion for many companies in the commodities sector. Aspermont earns through ever-increasing advertising revenue, which comes from its growing user base. This is scaling in its purest form because as the reach increases, the Company's development and IT costs are spread over more and more paying users. Currently, the average revenue per user (ARPU) is about USD 1,000 per year.

    In recent years, Aspermont has undergone a comprehensive restructuring at all company levels - corporate, operational and technological. More than 250,000 monthly active users now browse the website, generating a total of 7.5 million digital touchpoints. Currently, they have about 4 million active users in the global mining sector, with 22% of customers from Australia but only a manageable 7% from Asia. The size of the Asian market, which has not yet been addressed, shows enormous potential for the coming years.

    Aspermont intends to introduce new types of subscription and service platforms in the coming years. Given the size of the global audience already in place, real-time analysis of behavioral data alone could enable another expansion step into the world of Big Data. Regardless of whether this data is used in-house or sold on the market, a future-oriented profit model arises from both levels. It is also intended to set up a digital financing platform.

    The Aspermont share is still far too cheap, with a capitalization of around AUD 67 million. The stock can be traded liquid in Germany and is an absolute bargain compared to some NASDAQ data giants like Palantir or Qualtrics.


    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

    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 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