28. August 2020 | 06:51 CET
Triumph Gold, TUI, wallstreet:online - Special situations with potential
Two stock splits are scheduled for next week, which will be the focus of investors. This type of capital measure is usually chosen to make the share price look good again and thereby increase the trading volume. In the case of Apple, one share becomes four new shares, which means that whoever holds one share on the record date will subsequently hold a total of four new shares. In theory, the share price should then be 75% lower. In the case of Tesla, a split in the ratio 1 to 5 is imminent. At its recent annual general meeting, wallstreet:online AG even approved a share split of 1 to 8. Ultimately, however, it is crucial how high the market capitalization is in order to be able to evaluate the potential of a company.
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ISIN: DE000TUAG000 , CA8968121043 , DE000A2GS609
Gold is getting scarcer
The gold sector is currently experiencing the best conditions for a long term recovery. The central banks and politicians are adopting measures to combat the Corona Pandemic, which will lead to an increase in the money supply. The broad money M3 in the Eurozone increased by 10.2% in July 2020 compared to the same period last year, the highest increase since May 2008. More and more investors and asset managers are therefore avoiding currencies and switching to equities or physical gold. This may explain the stock rally on the one hand and the historical rise in the price of gold to over USD 2,000.00 per troy ounce on the other.
The new high price level of gold will have side effects on the supply chain. Especially in exploration, attractive price developments are expected in the future. While producers are earning high margins on the sale of gold, reserves are shrinking at the other end. Since 2012, the major producers have recorded an overall decline in reserves of over 34%. This is why companies like Triumph Gold are particularly interesting for the mining industries. Newmont is already the largest shareholder on board with approximately 18%. In the coming months, the company will release further information on the properties in the Canadian Yukon. A takeover bid should be imminent once a critical mass of proven gold is reached.
Crisis management creates customer loyalty
The travel group TUI is currently going through difficult times. It is an open secret that the continued existence of the company is only guaranteed because of its size. The system relevance is given, then the giant has slipped into the current situation through no fault of its own and a bankruptcy of TUI would cause a domino effect in Europe and many other parts of the world. For this reason, the bottom line is that it is cheaper and more important for the common good to provide the company with government loans. The aid package for TUI has now reached almost EUR 3 billion.
Against the background that the market value of TUI is currently around EUR 2.1 billion, it is clear how the state's involvement is related. While fans of individual travel often have to pay the cost of cancellations, TUI can offer its customers more accommodating rebooking options, which helps to develop special customer loyalty in these difficult times. A similar situation arose ten years ago, when a volcanic eruption in Iceland led to the suspension of air traffic and left many tourists stranded in their vacation destinations. TUI brought its customers back home with bus fleets rented at short notice.
New source of income streams in
The share of wallstreet:online AG brings everything with it to become a real highflyer. Through its acquisitions, the company has not only gained access to around 75% of all investors in German-speaking countries through the platforms ariva.de, boersennews.de, finanznachrichten.de and wallstreet-online.de, but has also been offering its own online trading format via these channels since the fourth quarter of 2019. Access to the target group without wastage and with an attractive offer has resulted in the amount of customer funds held by the 'Smartbroker' now rising to over EUR 1 billion.
The current boom phase on the stock markets, combined with restrictions in everyday life, provided excellent conditions for the overdue product launch. The users of the portals can be picked up directly from the information offer for the account opening. In simple terms, the company has opened up another source of income for its shareholders that promises passive cash flows. The independence from advertising formats increases as a result and the share gains in potential - even before the prepared share split from 1 to 8.