12. May 2021 | 11:00 CET
wallstreet:online, Deutsche Bank, Alibaba - Shares with potential
How to find stocks with potential? Investors should use the time of waiting to inform and educate themselves. One should think long-term and only invest in things you understand. If the masses like a stock story, be careful not to buy the highs. You should ask yourself if it is just hype or if the Company has a history. If you then find a stock that convinces you, the price does not want to come back. Then you have to wait and be patient. Today we have taken a closer look at three stocks with history, all of which have experienced a setback.
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ISIN: DE000A2GS609 , DE0005140008 , US01609W1027
wallstreet:online - Predefined growth plan
For years, the largest financial community in the German-speaking world was built up independently of publishers via wallstreet-online.de, finanznachrichten.de, boersennews.de and ariva.de. Since the end of 2019, the monetization process of this community has now been underway, with Smartbroker offering users low-cost securities trading.
Growth has been rapid since then and Smartbroker currently has over 130,000 customers. This number is partly due to Corona, as people were forced to stay at home, and so some discovered their passion for the stock market, especially as there were favorable entry prices for the first time in a long time thanks to the pandemic. The phenomenon can be compared with the growth of Robinhood in the USA.
But this is far from the end of the monetization process - it is instead at the beginning. The new CEO, Matthias Hach, wants to gain 200,000 customers by the end of the year and at the same time link the dovetailing of broker and financial community even more closely. As early as 2021, the brokerage business is expected to account for 32% of sales. Deutsche Bundesbank expects the financial market to grow by 6% per year.
To offer the Smartbroker customers as diverse an offer as possible, a sponsoring membership with the German Derivatives Association was concluded on May 1. wallstreet:online hopes to better master the increasing regulatory requirements together with the issuers of derivatives through cooperation.
The supervisory board in the person of Marcus Seidel also believes in the potential of the share, who bought shares for over EUR 169,000 last week alone. After reaching a high of EUR 29.70, the share consolidated to EUR 16.40 by April 12. The upward trend of the share is nevertheless intact. Currently, it is possible to buy at prices roughly where the Supervisory Board also bought in.
Deutsche Bank - The end of the dry spell
As a former shareholder of Deutsche Bank, one has had to endure a lot of suffering since 2007. The low point was reached on March 16, 2020, and the former flagship bank had become a restructuring case. Since then, things have been looking up bit by bit. CEO Christian Sewing announced the best result of the last 7 years in the first quarter of this year: A pre-tax profit of EUR 1.6 billion.
Investment banking is responsible for the profit. Profit before tax increased by 134% compared to the same quarter last year, which is remarkable as revenues only increased by 34%. Profitability resulted from increased demand in IPOs and shell offerings and fixed income and currency trading.
The after-tax return on tangible equity was 7.4% and is expected to increase further. If interest rates continue to rise, Deutsche Bank will undoubtedly benefit. Yesterday, there was also positive news that the US Department of Justice is dropping the 1MBD investigation in which Malaysia sought compensation.
The Company is holding out for the prospect of a dividend in 2022. As long as the price remains above EUR 10.37, the share looks good from a chart perspective.
Alibaba - Growth continues despite penalty
Alibaba is one of the world's largest corporations, which is now also known in Europe for its trading platform. The growth knows hardly any limits, and the Company is always trying to take over new companies and thus cover more areas for the customers. Alibaba is the 'Amazon of Asia'.
The stock has come back from its high of USD 319 to USD 211 in October. One of the reasons was a record fine imposed by the Chinese government. Rumor has it that the fine is due in part to critical statements made to the Chinese government by Alibaba founder Jack Ma.
Alibaba invested heavily in the media sector and took over newspapers, production companies and the short news platform Weibo. When the affair of a married vice president became public via Weibo, the corporation simply censored the news showing Alibaba can control opinion to a certain extent. That is certainly a thorn in the government's side. The Company will act more cautiously in the future.
The main business at Alibaba remains commerce, but the cloud business could also grow by 50% in 2020. However, the cloud business model is only at the beginning in China, so one can spend on further growth there. The group's growth will continue to move forward, and investors can use the setback in the share to buy and build initial positions. The share must remain above the mark of USD 211.