Close menu

June 24th, 2021 | 15:51 CEST, Steinhoff, Mineworx Technologies - Can you believe it?

  • Investments
Photo credits:

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: 3 minutes | Author: André Will-Laudien

Table of contents: - 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, 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. 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 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.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    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.

    About the author

    Related comments:

    Commented by André Will-Laudien on January 31st, 2023 | 14:50 CET

    E-mobility 2023: The Tesla hunters are coming! BYD, Lucid Motors, Tocvan Ventures. Will the Varta share now also fly?

    • Mining
    • Gold
    • Electromobility
    • Investments

    It Is hard to believe! The Tesla share is once again making a name for itself. Analysts went into the presentation of the annual figures with cautious expectations because there were many negative rumors surrounding Elon Musk's electronics company: Fewer sales? Cars on stockpile? Again, it came as no one had expected it. Elon Musk delivered and simultaneously mocked all the shorties who wanted to push his stock below USD 100 at the turn of the year. This gambit went badly wrong because Tesla was able to deliver even better figures than expected, and there was no stopping the share. With plus 70% in only 4 weeks, the Tesla share belongs to the shooting stars since the turn of the year - the short sellers must have lost their desire completely. But the variety of interesting shares is significant. Where are the opportunities for e-investors lurking?


    Commented by Nico Popp on January 31st, 2023 | 14:33 CET

    This new project changes everything: Deutsche Bank, Aspermont, Alibaba

    • Digitization
    • Innovations
    • Technology
    • Investments

    When processes go digital, great opportunities arise: automation and scaling can ensure growth and turn established business models into high-flyers. But which companies should investors actively support in their transformation? Where is there real potential for investors, and where are companies just spreading buzzwords? We highlight three stocks for you.


    Commented by André Will-Laudien on January 30th, 2023 | 09:13 CET

    Mega biotech rally 2023! Defence Therapeutics, Bayer, BioNTech, Morphosys - Where to put the money?

    • Biotechnology
    • Cancer
    • Covid19
    • Investments

    Who would have thought it? Since the beginning of the year, the stock markets have been jubilant despite difficult predictions about the economic trend in 2023. High inflation and rising interest rates are not a good breeding ground for the popular biotech stocks because they have to constantly refinance their research expenses. As the risk fee is readjusted as costs rise, investors demand higher premiums for providing money. However, some biotech stocks have taken off since the beginning of the year despite adverse conditions. What is their secret?