Hottest Stocks in CW 31/23

One of the things being celebrated last week was the results of Aixtron, reflected by its weekly gain of 12.3 %. The German semiconductor equipment supplier's figures for the second quarter were well above analysts' estimates. The annual forecast for revenue and order intake was raised in each case. In addition, at the analysts' call on Thursday afternoon, the management board expressed great optimism about demand trends in the coming years. As a result, the price of the share, which used to be listed on the "Neuer Markt" in Germany, climbed to its highest level since 2001. The breakout from the recent trend of consolidation is considered a buying signal by many traders who keep a keen eye on the stock market. For this reason, Christoph Klar (SystematiCK), for example, bought Aixtron on Thursday morning and included the stock in his wikifolio Trendfollowing Deutschland.

There has been a lot of exciting news from Meyer Burger recently. The Swiss manufacturer of solar cells and solar modules recently reported that it had received a grant of € 200 million from the EU Innovation Fund for the construction of photovoltaic production facilities. This grant was to be used for the urgently required expansion of production capabilities for solar cells and solar modules in relation to the politically driven photovoltaic boom. Now, however, it has become known that the company may even receive around $ 1.4 billion in subsidies from the USA for the construction of a solar cell production facility. As a result, the company will now initially start operating in Colorado Springs and will only concern itself with a location in Germany at a later date - a real disaster for European investment policy.

On the stock exchange, however, investors were initially even more interested in the company's preliminary quarterly figures. These were in line with expectations in terms of production volume, but the published profit was disappointing. The price pressure caused by a surplus of solar cells on the market, as well as the depreciation of warehouse stock had a negative impact on the result and consequently also on the share price. In addition, guidance for EBITDA in the current year was suspended. Nevertheless, many wikifolio traders seem to remain convinced of the future prospects, as the trading sentiment for the stock shows. Many have used the drop in share price as an opportunity to enter the market.

Trading-Sentiment

Traders' reactions to Varta's equally disappointing results were quite different. The German battery manufacturer reported mixed results for the second quarter and a bleak outlook for the remainder of the year. Sales in 2023 are expected to be only at the lower end of the target range of € 820m - € 870m. In terms of EBITDA, the company is aiming to come in at between € 40m and € 60m This earnings forecast is significantly below previous market projections. Varta justifies this primarily through continued low demand for its products, as well as the high levels of stock being held by both manufacturers and consumers. The share price had been rising since June, rallying by over 60 %, however its stock has now taken a hit of -7.7 % week-on-week. It seems that some wikifolio traders probably preferred to play it safe and decided to sell their stock.

Do you also have Tupperware products in your kitchen cupboards? What hype there was back in the day, when there was a Tupperware party on practically every street, with the company's plastic containers being touted as the new "must-have". Now, in the spring, the U.S. company filed for bankruptcy, causing a veritable bloodbath for the stock. Share prices plummeted from over € 20 to under € 1. However, currently there seems to be a remarkable revival in this stock. Last week, the share price rose by an incredible 270 %. If you include the previous week’s rise, you can even see that overall, the price has increased fivefold. What is behind this is unclear.

However, there is much to suggest that Tupperware has become a so-called meme share, which is being hyped on the usual platforms. As was the case with Gamestop some time ago, private investors gather in forums to drive up shares that have been heavily undersold, thereby triggering a short squeeze. In Tupperware's case, that would fit, as about 14 % of the public offering was recently shorted, according to Refinitiv. Alternatively, could insiders be behind it, speculating that finally some good news is round the corner from the company, which is in serious financial difficulties? Either way, some traders on wikifolio.com jumped on the bullish bandwagon this time. This strong recovery rally was now used for short-term profit taking.

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