Trump tariff crash – Now is the time to pick the cherries! Steyr, Mutares, naoo AG, Deutsche Bank, and Commerzbank in focus

Steyr and Mutares – Hand in hand, downward

As late as March, Mutares and Steyr were the highlights of the Defense-Rally 2.0. After Steyr announced that it wanted to make strong inroads into the defense sector with acquisitions, there was no stopping the title. The share price shot up to EUR 380 in just one week. But then, free shares of Mutares AG hit the market. The major investor wanted to increase the free float and even obtained an easing of the agreed lock-up from their custodian bank. The Upper Austrian specialist engine manufacturer Steyr is currently exploring the market for external acquisitions. Following the approval of special loans in Germany, management expects rising defense budgets in other major European countries and high demand from international allies. Steyr Motors, headquartered in Steyr, produces high-performance engines, such as main propulsion units for military special vehicles, boats, and auxiliary units for battle tanks and locomotives. Products for military purposes now account for the majority of revenue. In 2024, revenues increased by 9.2% to EUR 41.7 million compared to 2023. At its peak, the market capitalization soared to a crazy EUR 2.2 billion. What nonsense! As a result, both Steyr and Mutares plummeted - by 90% and 40% respectively. Investors are now back down to earth. Due to a good portfolio positioning, Mutares is interesting in the medium term up to around EUR 28.50. Steyr is also growing steadily and should recover slightly in price.

naoo AG – The next steps are clearly defined

The Swiss company naoo AG recently presented itself to a large audience at the Munich Capital Market Conference (MKK) hosted by GBC. CEO Thomas Wolfensberger took the opportunity to explain the Company's business model in more detail. The innovative tech company operates a new social media platform and is thus competing with tech giants such as Meta Platforms, Microsoft, Tencent, and ByteDance. By exploiting the known weaknesses of large platforms, international programmers have launched a new type of social media platform that rewards the activity of its currently over 90,000 users. The decisive factors are valuable content and a new, detailed and personalized type of profile.

naoo incentivizes its users with a unique points system, and the "rewards" earned through activity can be exchanged for goods, services, or cash, depending on availability. At the end of March, the Company successfully acquired Kingfluencers AG at a very low transaction price in shares. The largest influencer agency in Switzerland was thus 87% integrated. The acquisition directly impacts the income statement, as Kingfluencers AG already generated revenues of around CHF 7 million in 2024 and continues to grow strongly. From an external perspective, this is a milestone for naoo, as it can now advertise advanced platform services on a large scale. The resulting synergies are expected to bring the group into profitability as early as 2025. The upselling to premium customers of Kingfluencers should enable a gradual expansion into the DACH region this year, potentially multiplying revenue potential. CEO Wolfensberger makes it clear that M&A will continue to be an important strategic pillar in the future. His mid-term goal is to reach more than 19 million active users.

Last week, the naoo share was trading in the range of EUR 13 to 17. The Swiss company is already planning an upgrade to the primary market in Düsseldorf. This would also make trading venues like Frankfurt and Tradegate accessible, significantly increasing daily liquidity. The story is just starting to take off, buy in now!

Deutsche Bank and Commerzbank – Double-digit crash

The shares of Deutsche Bank and Commerzbank were hit like a bolt of lightning. The reason: the imposition of tariffs could trigger an economic downturn and further fuel the already rising insolvency rates.
As a result, many investors once again pulled back, particularly in the economically sensitive banking sector. The European banking index plunged by 9% at its peak, and in the DAX, Deutsche Bank and Commerzbank stocks fell between 15 and 20% over the entire week.

Another point that weighs heavily on banks is that the real estate and infrastructure sector had just moved off the ground and was hoping for lower refinancing rates. However, central bankers now fear that inflation will continue to rise. This makes interest rate cuts in the coming months rather unlikely. After Donald Trump's sweeping tariff cut, the US Federal Reserve, represented by Jerome Powell, does not see good times dawning for the US. Investors should avoid the banking sector for the time being, especially since the segment has performed extremely well in recent months. Therefore, take profits calmly because if Trump makes good on his announcements, the correction is likely to continue!

The Trump crash was quite something. The DAX 40 index lost a full 2,500 points, and volatility jumped from 22 to 35% at times. It was a sell-off period on the NASDAQ, with popular stocks such as Nvidia losing 45% of their value in six weeks. The next few days are likely to be very exciting. As a second-tier stock, naoo AG was spared a correction because the Swiss company's growth model is convincing and will accelerate further with the integration of Kingfluencers AG.