October 13th, 2022 | 11:27 CEST
Your crash, our chance: Vonovia, Aspermont, Deutsche Bank
UBS warns that real estate prices in Frankfurt am Main and Munich are too high. Industry insiders also see hard traces of braking on the real estate market elsewhere. For a long time, real estate was considered a safe investment class for the wealthy. The trend was upward for many years. Nowhere else was it so easy to park capital and generate income. But now everything is changing. Shares, like those of the real estate company Vonovia, have already come back. We shed light on the sector and show alternatives.
time to read: 3 minutes
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Author:
Nico Popp
ISIN:
VONOVIA SE NA O.N. | DE000A1ML7J1 , ASPERMONT LTD | AU000000ASP3 , DEUTSCHE BANK AG NA O.N. | DE0005140008
Table of contents:
"[...] We have built one of the largest land packages of any non-producer in the belt at over 440 sq.km and have made more than 25 gold discoveries on the property to date with 5 of these discoveries totaling about 1.1 million ounces of gold resources. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.
Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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Vonovia: The excitement around the topic is not worth it
As recently as the first half of the year, almost everything looked rosy at Vonovia. The takeover of Deutsche Wohnen had a positive impact on rental sales: Vonovia generated a total of EUR 1.18 billion in the first quarter of the fiscal year. The net asset value (EPRA standard) per share was EUR 63.55, significantly higher than the price a few months ago. In the meantime, the price has corrected further, showing that the market only values shares such as Vonovia at a significant discount to the net asset value - the share is now trading below EUR 20. The share has fallen by around 21% in the past month alone.
Investors blame the crash on the real estate market for the share price slump. The environment for large real estate transactions is probably not all that positive at the moment. However, Vonovia operates in the lower price segment, and, given the critical situation of many people in view of the crisis, it is unlikely to have any problem with vacancies in the future. The dividend is also convincing, with a yield currently approaching 9%. Even if real estate takes a hit, Vonovia's business model remains intact. However, as a shareholder, there is currently no need to invest in the Company.
Aspermont: Corporate investments as growth opportunities
While Vonovia is likely to avoid worries about rent arrears and missed progress payments, the Australian media company and fintech Aspermont does not have such worries - it primarily works with companies. Aspermont publishes renowned industry magazines, such as Mining Magazine, and offers numerous digital products ranging from newsletters to digital training. Over the years, Aspermont's files have accumulated millions of valuable business contacts from the industrial, agricultural and mining sectors. Some time ago, Aspermont launched Blu Horseshoe, a platform where investors can participate in growth companies. For a long time, such investments were reserved for qualified investors only and involved some bureaucracy. Aspermont has largely digitized these processes, opening up a promising market for growth companies and investors alike.
While the investment climate has cooled recently, new projects still report on Blu Horseshoe almost weekly. At a time when real estate is no longer a safe bet, investors may be looking to areas that promise growth on the one hand and deep value on the other. Young companies in the natural resources sector have tangible assets in the ground while offering strong growth opportunities if those assets are creatively leveraged. Wealthy investors, in particular, can spread their assets across several projects and are therefore predestined for this form of investment. Since platforms like Blu Horseshoe can be scaled perfectly, investors should have Aspermont's stock on their radar.
Deutsche Bank: Poor framework conditions
The fintech business Aspermont is doing today might suit big players like Deutsche Bank. But the major institutions have not exactly distinguished themselves as "first movers" in recent years. In the short term, the industry has been put on the spot by the problems at Credit Suisse. Although German institutions, such as Deutsche Bank, are not threatened by existential worries, the general conditions are conceivably bad. The big deals that investment banking likes to pounce on are rare. Only smaller companies are looking for follow-up financing. However, the big players in the industry have long neglected this area. Although the interest rate turnaround is reviving the bread-and-butter business, the market remains challenging. Deutsche Bank's stock has taken a beating.
In a market environment where many things are not going optimally, investors should focus on areas where there is a special boom. The real estate crash, which is taking place much more dramatically elsewhere, such as in the UK or the US, than here in Germany, is causing investment distress among many investors. Large banks are hardly in a position to enter the gap - in recent years, too little attention has been paid to small growth companies. A fintech like Aspermont occupies this niche, scores points with low costs and brings the necessary contacts thanks to the long-established media business in precisely this area. The stock is a penny stock, but the business is solid. If you do your research on Aspermont, you will find a conservative growth stock.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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