24. June 2021 | 15:51 CET
windeln.de, Steinhoff, Mineworx Technologies - Can you believe it?
The capital markets are going in circles! A new round every day. Usually weak in the morning and up again in the evening as Wall Street rises. A never-ending game at absolute top levels. The slogan of the investment banks is "buy on any dips" because they naturally want to continue their business with the lucrative new issues. The pressure to refinance becomes stronger in an inflationary environment for companies because they first have to lay out preliminary products that have become expensive. Investors are therefore demanding more risk premium today than they were a few months ago. Once large stocks have taken off, investors are also turning their attention to smaller stocks. Penny stocks, in particular, are being moved back and forth with the help of social media slogans.
time to read:
ISIN: WINDELN.DE SE INH O.N. | DE000WNDL201 , STEINHOFF INT.HLDG.EO-_50 | NL0011375019 , MINEWORX TECHNOLOGIES LTD | CA6034652041
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
windeln.de - Capital increase via MEME push
They are called MEME stocks but what the abbreviation stands for is not exactly defined. Instead, they can be described as a phenomenon: They are shares advertised virally on the Internet and thus attract the attention of many private investors. With meme stocks, trading volume increases not because of good quarterly figures, big deals or bright business prospects for the Company, but rather because of the hype in social media and online forums such as WallStreetBets (WSB for short) on Reddit. As a result, these shares experience drastic price increases in a short period, and fundamental analysis becomes obsolete.
At windeln.de, there were only restrained figures in the last quarters. As recently as the beginning of May 2021, the "Pampers share" marked its low for the year at EUR 0.52. Starting from this level, the value benefited from an unexpected wave of speculation, which also occurred in a similar form with other securities such as AMC and GameStop. However, these companies are also not doing well in their operating business. Windeln.de thus reached a price level of over EUR 7.00 - but only briefly.
The Company is naturally taking advantage of the good mood around its shares and is now trying it with a capital increase, which would not have been possible without the support from the social media hype. For two days now, the subscription phase has been running at a ratio of 2:1 at EUR 1.30. One can only advise windeln.de to deliver accordingly in the following quarters; otherwise, the share price will be frosty again.
Steinhoff International - A solution could be lurking
The figures of the Steinhoff Group are gradually improving. South African subsidiary Steinhoff Investments has reported a ZAR 3.4 billion profit from continuing operations. That is the audited interim result for the last 6 months to March 31, 2021, compared with a loss of ZAR 13.1 billion for the same period the previous year. That must sound like music to the Company's creditors.
According to Mazars' audit report, revenue from continuing operations rose 8% to ZAR 36.5 billion. Operating profit improved from a loss of ZAR 10.6 billion to a profit of ZAR 5.2 billion. According to the report, the provision for the litigation settlement proposal also increased to ZAR 10.6 billion from ZAR 9.4 billion, and no interim dividend on ordinary shares was declared.
Trading subsidiary Pepkor had entered into a sale and purchase agreement to sell The Building Company for a total purchase price of ZAR 1.2 billion, but the Competition Commission had prohibited the deal for the time being. The sale process of the Africa real estate portfolio had been significantly delayed last quarter anyway due to Covid-19. It thus remains challenging, but perhaps an opportunity will arise in the current quarter to make creditors more upbeat with a convincing performance. The stock remains highly speculative.
Mineworx Technologies - Green admixture for the portfolio
Another attractive penny stock is the Canadian Company Mineworx Technologies. It operates in a green industrial niche and can contribute to the Paris Climate Protocol by implementing its processes. The growth idea consists of combining environmentally friendly techniques within raw material extraction and waste recycling in the field of catalysts. The Company primarily focuses on extracting platinum and palladium from diesel catalysts with its US partner Davis Recycling and will build its first commercial extraction plant in Tennessee.
By leveraging its patent-pending, environmentally friendly extraction technologies, the Company is succeeding in improving the footprint of a challenging industrial sector. As a diversified technology supplier to the mining industry, it covers multiple stages of production with advanced solutions. Circular solutions is the buzzword. It refers to integrated reprocessing through the recovery of raw materials, managed by efficient industrial processes.
Mineworx is thus a well-rounded story in the field of environmentally friendly technologies. Currently, there is a legal dispute with EnviroLeach Technologies Inc., which relates to Mineworx allegedly using certain intellectual property of EnviroLeach without permission. Mineworx denies all of EnviroLeach's allegations and believes the allegations are frivolous and without merit.
Mineworx Technologies (MWX) shares have been listed on the Canadian Stock Exchange since May 2020. The current trading range is a low CAD 0.06 - 0.09 because of the dispute. With approximately 342 million shares, the market capitalization is currently CAD 20.5 million. With the expected settlement of the legal dispute, the share is certainly worth another look.