Small but mighty - small caps continue to outperform blue chips from the DAX and the like. The top performers can score with price increases. On their heels is Media and Games Invest, whose CFO answered three questions about the company as the start of a new series.
16 July 2021. FRANKFURT (Börse Frankfurt). The Scale segment continues to perform well: With a gain of 29 percent since the beginning of the year, the Scale All Share Index even outshines the DAX, which is not exactly hiding either with a gain of 14.5 percent. At the beginning of the month, the Scale All Share, which tracks all Scale shares, even reached a new all-time high of 1,934 points. On Thursday morning, it is slightly less with 1,886.
There has been some recent movement among the top performers on a twelve-month view: The long-term number one Cliq Digital (DE000A0HHJR3) has fallen back significantly. At the top of the list are now Ernst Russ AG (DE000A161077), an investment company specializing in ships, and IBU-tec advanced materials (DE000A0XYHT5), a manufacturer of battery components, followed by Media and Games Invest (MT0000580101), an investment company, Ökoworld (DE0005408686), an eco-fund provider, and MPC Münchmeyer Petersen Capital (DE000A1TNWJ4).
Ernst Russ and IBU-tec with share price increases
The price of the Ernst Russ share has risen since July 2020 from 0.68 to currently 3.38 euros, i.e. fivefold. For a short time it was even over 4 euros. Ernst Russ is benefiting from the once again positive market environment for shipping, including high charter rates and capacity utilization. The company remains optimistic for the current fiscal year.
The price of the IBU-tec share has also increased fivefold, from a good 10 euros a year ago to the current 51 euros. The reason for the soaring price: In October 2020, the company announced that it would be offering its own battery material for electric cars and stationary energy storage starting this year.
Analysts still see room for improvement at MGI
Media and Games Invest (MGI), which only moved from the Basic Board to the Scale segment in July 2020, is also a real success story. Some analysts believe that the share, which has already risen from 2 to 6.24 euros this year, has even more potential and recommend buying it. GBC, for example, has a target price of 8 euros. The analysts remain convinced that MGI will successfully continue its profitable growth course. First Berlin also recommends MGI and has raised the price target from 5.80 to 6.80 euros. The background is the good figures for the first half of the year and the positive outlook.
Ökoworld: Profiteer from stock market rally and ESG boom
The share price of Ökoworld has still quadrupled since July 2020 and is currently at 80 euros. Recently, the fact that the company has almost doubled its dividend was well received. Ökoworld benefits from the good development on the stock markets and the boom in sustainable investments. "If the development continues in such a way, also the Ökoworld share could continue to rise , means the independent magazine for lasting investments ecoreporter.de. If there are longer-term setbacks in the fund market, however, the profits of Ökoworld AG could also be lower.
Bank | Scale-company | Recommendation | Target price in Euro | current price in Euro |
GBC | Helma Eigenheimbau | Buy | 77.75 | 59.00 |
Montega | Helma Eigenheimbau | Buy | 79.00 | 59.00 |
GBC | Deutsche Grundstücksauktionen | Buy | 29.25 | 22.60 |
SMC Research | Lloyd Fonds | Buy | 14.20 | 9.08 |
SMC Research | Daldrup & Söhne | Hold | 5.60 | 4.44 |
SMC Research | mVise | Hold | 3.50 | 2.05 |
GBC | EQS Group | Buy | 47.40 | 38.60 |
GSC Research | EQS Group | Buy | 45.50 | 38.60 |
How do you explain the sharp rise in the Media and Games share since the end of last year?
Paul Echt: Media and Games Invest has been on an enormous growth course for years, which has led to steadily increasing high profitability. This development has not gone unnoticed by investors. In recent quarters, we have seen a significant increase in interest in our shares, especially among Scandinavian investors who are very familiar with the gaming industry.
Can investors hope for similar price increases in the future?
Paul Echt: The share prices are made on the stock exchange, we take care of the operational business development. But I am convinced that in the medium to long term, share prices will reflect operational development. We expect growth to continue, and this year we have also raised funds through a capital increase and the increase in our bond to further strengthen our internal growth with acquisitions.
From an investor's point of view: What speaks in favor of your share?
Paul Echt: With the Media and Games segments, we have two strong pillars that are even stronger in combination and realize extensive synergy and growth effects. This means a significant competitive advantage. In addition, both markets are very large and growing massively, so we can assume that the Media and Games Invest growth story will continue in the coming years. In other words, MGI is a profitable growth story in dynamically developing markets. Media and Games is even growing significantly faster than the market as a result of the combination.
Media and Games Invest SE (headquartered in Valetta/Malta) is a digital integrated games and media company focused on Europe and North America. The company combines organic growth with acquisitions and has acquired more than 30 companies and assets in the past six years, most recently the digital advertising platform Smaato. The company is considered one of the big beneficiaries of the pandemic.
from: Anna-Maria Borse
© 16 July 2021, Deutsche Börse AG