09. June 2021 | 10:20 CET
windeln.de, NSJ Gold, MorphoSys - High flyers of today and tomorrow
These are crazy times on the stock market and it is not easy to find the next high flyer. At the moment, even in Germany, there are gambler stocks, such as Adler Modemärkte. Markets are at their all-time highs and even if many cannot comprehend it, I guess you have to get used to it. Money that would otherwise have gone into government bonds flows into the equity markets, bringing a dividend yield instead of interest. Today we present three possible high flyers, whereby windeln.de has probably already gone too far.
time to read: 3 minutes by Armin Schulz
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
windeln.de - Pure gambling
windeln.de is regularly on the verge of insolvency. Being an online retailer, the Chinese business and the special effects in Corona times should have increased sales. But unlike Amazon and Co., the Company failed to seize the opportunity that presented itself. The self-imposed targets of double-digit growth were not achieved. It was only enough for a plus of 8.6%. The adjusted EBIT break-even target was postponed to 2022.
On April 1, the Company announced a loss of more than half of its share capital, after a capital increase in March at EUR 1.30, which brought EUR 1.4 million. Sales figures in the first quarter fell, as did EBIT compared to the same period last year. These figures cannot explain the sudden rise in the share price and make the windeln.de share a meme share.
A meme share is a term used among young investors to describe hyped shares for which no attention is paid to the fundamental data. Often this happens with stocks that have a high short ratio, or the market is very tight. In the case of windeln.de, the free float is only 16.3% or 2,293,787 shares (as of March 31). As a serious investor, you should stay away from this gamble, or if you really want to be in it, only put in play money.
NSJ Gold - Eagerly awaited results
A little later than initially expected, NSJ Gold has completed its drill program at the Golden Hills project. A total of 16 holes were drilled for a total of 1,263m. Samples were also taken along the high-grade gold zone, which is at least 88m long and is part of a 570m IP anomaly. Three other IP anomalies have been assayed, and they are now awaiting results from the 828 samples.
An analysis is expected in 3-6 weeks. However, the Company seems to be very pleased with the results, as on May 11 the Golden Hills project was expanded by 4km². The area is attractive because it is covered by alluvium, which can be considered a sign of mineral potential. There are structures containing copper oxides in the southeast of the new area and several prospects indicate potential.
The stock, which saw its all-time high of CAD 0.37 at the time of listing, has since moved back to the shares issue price at CAD 0.20. Based on the historical results and the significantly higher valued mining companies in the near vicinity, one can still speculate on a movement of the share at an early stage. Gold and copper prices have already risen, and if the results are positive, the stock will undoubtedly jump.
MorphoSys - Bottom found?
MorphoSys AG is a biopharmaceutical company and seeks to help patients suffering from cancer, inflammation and autoimmune diseases. With the announcement of the acquisition of Constellation for EUR 1.7 billion, the stock plummeted to EUR 60.30. Once again, the former darling of German shareholders made no friends among investors, as the acquisition was 70% above Constellation's share price.
However, CEO Kress portrays the move as transformative, as it will strengthen the Company's position in hematology-oncology. On Tuesday, the approval of Biogen's Alzheimer's drug boosted MorphoSys' share price. The reason is that the drug Gantenerumab from MorphoSys works according to the same procedures as the competitor product with the approval. That increases the Company's chances of obtaining regulatory approval.
So it is a stormy time for shareholders at the moment. Technically, the stock has formed a double bottom on May 11 and June 2. What would be necessary now is a rise and closing price above EUR 72.78. Then the picture for the share would clear up considerably. The downward trend would then also be stopped for the time being. The share has lost almost 50% of its value within a year and could slowly rebound. The stock should be on the watch list because there is a lot of potential.