Every 14 days, we will inform you free of charge about the development of new issues for the current year, supplemented by equity analyses on selected topics. Today’s edition is about the development of share prices in electromobility. The weakness of electromobility in Germany is reflected in the development of share prices. The share prices of all electromobility values are below the issue price.
None of the new issues in 2019 could hold above the issue price. The share price of the Global Fashion Group continues to slide. Within six weeks of listing, the stock has already lost more than 26% in value. The stock has also performed significantly worse than the overall market. With extremely low trading volumes, only Frequentis shares have so far performed better than the overall market. In view of the difficult stock market environment and the associated extraordinary reluctance of investors to issue new shares in the remaining three months, we assume that at most up to two companies will be confident of going public successfully.
Electromobility is often referred to as a megatrend. In 2017 and 2018, new issues in Germany were included in this sector for the first time. However, there were only three issuers. With the exception of Aumann AG, AKASOL and Voltabox are relatively small companies that serve niches with battery solutions in the electromobility sector.
Other German companies listed on the stock exchange with a link to electric mobility (excluding manufacturers of electric vehicles) are:
- EDAG Engineering Group AG: Security Solutions for Electromobility
- Manz AG: Plant builder for lithium-ion batteries
In addition, there are other companies, such as Mahle AG, which is almost exclusively owned by two major shareholders or companies such as IBU-tec advanced materials AG, whose battery materials business unit accounts for only a very small part of total sales.
In contrast to the media presence, electromobility in Germany still leads a shadowy existence in practice. The €4,000 funding awarded by the federal government and manufacturers would have expired in June 2019 and was extended until December 2020. In the first half of 2019, just 31,059 new electric cars were registered, including factory registrations. This corresponds to almost 1,7% of all new registrations. It is embarrassing that there are also delivery difficulties with the few new registrations.
(Source: auto motor und sport, 09.07.2019, https://www.auto-motor-und-sport.de/verkehr/elektroauto-neuzulassungen-deutschland-juni-gesamtjahr-2019)
The weakness of electromobility in Germany is reflected in the development of share prices. The share prices of all electromobility values are below the issue price. For example, Voltabox suffered a price loss of over 72% in the last 30 calender days with an extreme volatility of 227%. The initial Shootingstar Aumann AG is also below the issue price by over 64%. All three new issues from the electromobility sector have performed worse than the overall market.
More in our current short analysis….