February 13th, 2024 | 07:00 CET
TUI, Globex Mining, Palantir - Movement is possible here
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"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
TUI - Ahead of the figures
The TUI share could already be on the move today. The Hanover-based company will present its figures for the first quarter on February 13. In addition to good figures from the winter business, the outlook for the current year, in particular, could play a decisive role in determining the direction of the share in the coming months. Following last week's presentation of good numbers by competitor lastminute.com, the prospects are good that TUI will also be able to improve its figures. At lastminute.com, adjusted EBITDA grew by 27% to EUR 39.7 million.
The Federal Statistical Office is also sending out positive signals and reported that the German tourism industry is approaching the record year of 2019 before the pandemic. Last year, it was only 1.7% short of equaling the overnight stay record.. Compared to 2022, bed occupancy increased by 8.1%. The figures from Travel Data + Analytics also show significantly better numbers than in 2022. In addition to the quarterly figures, the Annual General Meeting will take place on February 13, where a vote will be held on whether to relocate the stock listing of TUI from London back to Germany.
If the shareholders vote in favour with a majority of 75%, the Company could be re-listed in the MDAX. Despite numerous positive reports, the share has so far failed to benefit significantly. Nevertheless, short sellers have reduced their holdings, indicating there is likely not much downside potential. Deutsche Bank issued a "Buy" recommendation with a target price of EUR 10.50 on February 12. With the current share price at EUR 6.69, this suggests a nearly 50% upside potential.
Globex Mining - Portfolio for a sustainable future
The transition to greener technologies requires raw materials, and Globex Mining has plenty of them. With a portfolio of over 240 mineral projects, including 92 where the Company has secured royalties on future production, Globex Mining is well diversified. The spectrum includes precious, base and specialty metals, and industrial minerals. Important raw materials from the Globex portfolio for green technologies include rare earths, lithium, graphite, vanadium, aluminum, molybdenum and silicon. In many areas, Western countries have become dependent on China and Russia for the procurement of raw materials.
Globex's business model is unique and is based on revenues from option sales, joint ventures and royalties. This model has proven extremely successful as they have significantly increased the number of properties in recent years without incurring debt. The Company has over 25 million in cash, shares and options. Most recently, Globex received CAD 500,000 in cash and 300,000 shares from Emperor Metals Inc. as Emperor extended the option on the Duquesne West Ottoman property. This highlights just how secure the business model is. In the worst-case scenario, Globex receives the property back, including the new drill results. The work and the risk are assumed by the option partners.
Thanks to the broad spectrum of commodities, even short-term downturns, such as the recent lithium downturn, can be absorbed without any problems, as gold, for example, has recently risen significantly. This positioning is not only advantageous for the Company but also plays a decisive role in promoting a more sustainable future. In a world increasingly committed to environmental protection and sustainability, Globex Mining is a shining example of how companies in the resource sector can not only survive but thrive. The share is currently trading at CAD 0.82, giving it a market capitalization of around CAD 45 million. Based on the available cash and the large number of projects, the Company appears to be significantly undervalued.
Palantir - Good prospects
Palantir recently published its quarterly figures for the 4th quarter, which exceeded analysts' expectations. As a result, the share price shot up by 50% at its peak. The Company reported earnings per share of USD 0.08. Turnover rose by 19.6% YOY to around USD 608 million, exceeding forecasts by a good USD 5.5 million. The strong growth in the commercial and government business areas was particularly notable, with commercial sales up 32% and government sales up 11% YOY. Customers increased by 35%, indicating a growing demand for Palantir's solutions.
Palantir also gave an optimistic outlook for Q1 and 2024, with expected revenue figures of USD 612 million to USD 616 million for Q1 and revenue between USD 2.65 billion and USD 2.67 billion for 2024. Significant growth of 40% in US retail sales is expected. A net profit is also anticipated in every quarter. This means that the Group has finally managed to become profitable. The hype surrounding Artificial Intelligence (AI) is playing into the Company's hands. The Company collects, sorts and analyzes large volumes of data. The AIP product, which has been available since August 2023, allows users to ask the software questions and receive corresponding answers from the AI.
According to CEO Alexander Karp, the Company has held more than 500 boot camps since its launch. The Company is now benefiting from its years of experience in the AI sector. The demand is high, especially in the commercial sector, making the Company less dependent on government revenue. The analyst sentiment, despite some mixed opinions, is gradually improving. In the last 90 days, 17 analysts have reviewed the share, with 5 recommending the share as a "Buy", 8 as a "Hold", and 4 as a "Sell". The average price target is USD 18.63, significantly below the current stock price of USD 23.92.
TUI figures will be presented today, and important decisions will be made at the Annual General Meeting, leading to potential movements in the share. Globex Mining is currently considered undervalued; a significant portion of its market capitalization is covered by cash reserves. The Company is debt-free and has expanded significantly in recent years. It is only a matter of time before the market recognizes this. Palantir has already made its big move. For potential investors, it might be wise to wait for a pullback as the AI market has already experienced significant activity.
Conflict of interest
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