Latest news with #MDAX
The Market Online
2 days ago
- Business
- The Market Online
With gold over USD 3,400 - 100% gains in no time: Gerresheimer, Desert Gold, Hensoldt and RENK
Rumors about Jerome Powell's resignation were circulating at the beginning of the week. Described as very 'hawkish,' meaning he strictly aligns interest rates with inflation, he is an uncomfortable contemporary for President Donald Trump. The US administration needs a lot of money to get the outdated infrastructure and the entire economy back on track. Numerous campaign promises for a flourishing America can only be fulfilled by the flamboyant frontman if sufficient funds are available. This is a difficult undertaking due to the very high level of government debt. The credit rating agency Moody's is not intimidated by the president's threats and recently downgraded the US credit rating by one notch to AA1. Triple-A status is now history. This is a perfect setup for gold, with the precious metal rising again to over USD 3,400. Where are the opportunities for investors? Gerresheimer shareholders are currently experiencing just how quickly a share price can plummet. The specialty packaging manufacturer's shares tumbled by more than 25% at the beginning of the week and only found solid ground again at around EUR 47. This marks a three-year low for the MDAX stock, and no significant recovery is visible so far. The current profit warning has a painful impact on the original forecast for 2025, which now seems unachievable for the time being. Instead of moderate growth in net profit, Gerresheimer now expects a low double-digit decline. As a precautionary measure, the dividend for 2024 will be almost eliminated, with only 4 cents being distributed instead of EUR 1.25. Nevertheless, revenue is expected to increase slightly with an EBITDA margin of approximately 20% on average for the year. Analysts reacted coolly, with JPMorgan lowering its price target from EUR 122.50 to just EUR 108 but maintaining its 'Overweight' rating. Jefferies remains at 'Buy' and has left its price target at EUR 86. The German SME appears to be attracting much interest, as the Company has been in the spotlight of financial investors for years. Recently, rumors of an imminent takeover by Warburg Pincus and KPC Capital Partners caused the share price to rise to over EUR 66. On the LSEG platform, the 12-month consensus is currently EUR 58.50. The share price was trading above EUR 120 in 2023 and now has a single-digit P/E ratio for the next three years. That is cheap! Desert Gold – There is a lot to look forward to With Moody's downgrade of the US credit rating, 30-year bond yields have swung to over 5%. Historically, this level has always been perfect for a rise in the gold price, as inflation concerns cause investors to flee to the yellow metal. The persistent claim that gold pays no interest is clearly refuted by an annual return of over 9% since 2000. Gold has regained strength solely due to the devaluation of the US dollar and the corresponding loss of purchasing power. Even central banks are constantly buying, with Switzerland, China, Russia, and India standing out on the list of buyers. It is also gradually becoming apparent that US bonds are no longer the first choice for foreign exchange reserves. China has already sold over 30% of its holdings and is now only a minor subscriber to new issues. This is a difficult situation for the highly indebted US. Things are developing as hoped for Canadian explorer Desert Gold Ventures (TSXV:DAU). The Preliminary Economic Assessment (PEA) is underway, which means that the junior company will soon be able to start small-scale leach-testing. The promising properties, covering an area of approximately 440 square kilometers, are located in the Senegal-Mali Shear Zone (SMSZ), also known as 'Elephant Country.' The term describes the estimated 26 million ounces of reserves held by major players Barrick, B2Gold, Endeavour, Allied Gold, Hummingbird, Resolute, and BCM, which have only been partially explored or mined to date. Desert Gold has already identified 1.1 million ounces of gold near surface with 95,000 meters of drilling. CEO Jared Scharf and his team of geologists are confident that the upcoming evaluations will reveal an even higher value. Rumor has it that several high-ranking visitors have already visited Desert Gold's properties. With gold prices so high, the excitement is growing every day! When will a major player snap up the last remaining land in 'Elephant Country'? Desert Gold (DAU) shares have posted double-digit gains this year, but the next surge could be just around the corner. For some time now, the price of the approximately 240 million outstanding shares has been moving sideways between CAD 0.07 and CAD 0.08. With a market capitalization of around CAD 18 million, Desert Gold is significantly undervalued compared to its peers. A speculative buy! Hensoldt and RENK – Steep, steeper, doubled In addition to the gold market, defense stocks are currently booming. The never-ending conflicts in Ukraine and the Middle East are fueling demand for security and rearmament in NATO countries, which had tended to invest in disarmament during the long 70-year period of peace. Now, there is a dramatic 180-degree turnaround, with even former pacifists in the political landscape now advising billions in investments in military technology. The German Armed Forces alone are expected to receive a budget of more than EUR 100 billion over the next five years. For European defense stocks, this is almost daily grist for the mill. Hensoldt and RENK have gained 100% and 180%, respectively, in the last three months. Looking at the fundamental figures, analysts are currently unable to adjust their estimates to the incoming order situation. JPMorgan hastily adjusted its price target for Hensoldt from EUR 50 to EUR 110 to avoid looking completely out of touch in the analyst rankings. Other research houses are somewhat more conservative, setting price targets between EUR 45 and EUR 85, resulting in an average of EUR 67. However, everything has already been equalized, with Hensoldt exceeding the EUR 100 mark at the beginning of the week. According to the LSEG platform, the estimated 2025 P/E ratio is now 54, and the price-to-sales ratio (P/S) is almost 5. The picture is similar at RENK, where the Company is emulating industry leader Rheinmetall. Since investor Triton placed the stock at EUR 16 in 2024, the price has quintupled. The estimated 2025 P/E and P/S ratios are 62 and 6.3, respectively – what more can be said? Perhaps the order volume is so overwhelming that price hikes are fully justified. In this case, taxpayers do not get a say – the newly elected Bundestag has already approved the largest wave of defense investment in modern history by a majority vote. Prosperity and adversity are often close together. Looking back over the last three months, the stock market favored defense and gold stocks. RENK and Hensoldt are clearly on the rise, and Desert Gold has also seen double-digit growth. Only Gerresheimer was sent into a tailspin due to a profit warning. (Source: LSEG on June 3, 2025) Due to ongoing geopolitical tensions, defense stocks are currently setting the tone. Meanwhile, long-term interest rates are rising in the background, which is also pushing up bond yields. Junior explorer Desert Gold is heading into an interesting year of transformation – with a valuation of CAD 18 million, or roughly USD 12 per ounce of gold in the ground, an acquisition is not unlikely. 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') currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a 'Transaction'). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company. In this respect, there is a concrete conflict of interest in the reporting on the companies. In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships. For this reason, there is also a concrete conflict of interest. The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies. Risk notice Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such. The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user. The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use. This is sponsored content issued on behalf of Desert Gold Ventures Inc., please see full disclaimer here.
Yahoo
4 days ago
- Business
- Yahoo
German watchdog finds no abuse in companies' pre-results calls with analysts
By Tom Sims FRANKFURT (Reuters) -An investigation by Germany's financial watchdog has found no reason to change companies' practice of communicating with analysts before publishing results, following media concerns about the potential disclosure of insider information. Regulators have taken a closer look at so-called pre-close calls after media reports highlighted an apparent connection between high volatility in share prices and the communication with analysts. Germany's BaFin watchdog disclosed at a conference on Monday the findings of a study it began last year. Details will likely be published this week. "We do not currently see any systematic problems with the execution of pre-close calls," Christoph Schell, a BaFin official who studies market surveillance and abuse, said at the conference. Strong price reactions are isolated cases, and there is no need to tighten rules around the calls, he added. Last year, the European Union's securities watchdog warned that companies should not share market-sensitive information with external analysts ahead of their financial statements. The practice of pre-close calls is widespread - not just in Germany. It is typically communication before the publication of financial statements, between a company and analysts who generate research, forecasts and recommendations on the company's shares and bonds. Supporters say the calls contribute to the orderly functioning of markets. Schell said that BaFin found in its study that 63% of companies listed on Germany's DAX index of blue-chips and the MDAX of smaller companies hold pre-close calls. More than 90% of those companies conduct individual chats with analysts, he said. BaFin found that 70% of the market trading around calls it investigated showed no significant market reaction, while only 10% did. "We have investigated these cases and have so far found no evidence of any unauthorized disclosure of insider information," Schell said. He added that companies should nevertheless be as transparent as possible, by announcing the calls on their websites and holding them in a group format rather than individually.
Yahoo
6 days ago
- Business
- Yahoo
German markets steady as investors await inflation data
Investors on the German stock market remained cautious on Friday, as they awaited inflation figures from Germany and developments surrounding the US tariff policy. A public holiday in Germany the previous day is likely to slow trading, with many investors enjoying a long weekend. The leading German stock exchange index, the DAX, climbed 0.19% to 23,978.18 points shortly after the start of trading on Friday. The second-tier MDAX of medium-sized companies remained virtually unchanged at 30,698.45 points. The eurozone's leading index, the EURO STOXX 50, fell slightly. This followed the DAX's previous record run to almost 24,326 points in the middle of the week, after which some investors cashed in during thin holiday trading on Thursday. Observers are now focusing on economic data, with experts awaiting the May inflation figures from Germany's Federal Statistical Office at 2 pm (1200 GMT). "This information is important in view of next week's ECB [European Central Bank] Governing Council meeting," experts from the Landesbank Helaba said in their morning commentary. The ECB is set to make a decision on interest rates at the meeting on Thursday. Price data from the United States will also be released shortly after the German inflation figures. Court rulings on the US government's tariff policy have muddied the situation on the financial markets, according to the Helaba experts. "A large proportion of the tariffs have been declared invalid and blocked, but an appeals court has now reinstated the easures, for the time being. The situation remains tense," they said. Investors on Wall Street, however, were largely unfazed by the legal wrangling. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Al Etihad
19-05-2025
- Business
- Al Etihad
Germany's DAX index rises to record high
19 May 2025 21:54 FRANKFURT (dpa)The DAX, Germany's leading stock market index, reached a record high on subdued trading until the early afternoon, the index picked up speed after the US stock market opened, and climbed to a record high of 23,935 points in late crossed the finish line 0.70% higher at 23,934.98 points. The second-tier MDAX gained 0.82% to 30,131.65 turmoil in New York over the downgrading of the US credit rating quickly subsided after trading began, boosting risk appetite in Germany and benefitting the addition, the announcement of closer cooperation between the United Kingdom and the European Union supported market years after Brexit, the two sides reached agreements on issues such as defence and security, food standards, fisheries and energy, as well as irregular migration. No details of the telephone conversation between US President Donald Trump and Russian President Vladimir Putin were known by the close of trading. Stock Markets Continue full coverage
Bloomberg
06-05-2025
- Business
- Bloomberg
German Political Upset Shakes Faith in 2025's Winning Market Bet
By , Isolde MacDonogh, and Sagarika Jaisinghani Save The historic political upset in Germany is shaking investor confidence in a stock market that's been priced for perfection. The benchmark DAX Index slumped as much as 2.1%, while the domestic-focused MDAX Index sank 3.1%, after Friedrich Merz failed to secure a majority in a parliamentary vote to confirm him as the next chancellor — the first such outcome since World War II. German 10-year bund yields were slightly higher, moving in line with European peers.
