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Redcare Pharmacy (ex Shop Apotheke)— Why I am sending this one back + new research report

The online pharmacy market seems to be a promising long-term growth story. After some regulatory delays and starting issues, this segment is showing explosive growth, with much more to come. At least this is the pitch. Hearing the pro arguments, much makes sense and seems to be the logical path forward. As it is not possible to invest in physical pharmacies for most of us, is the online pharmacy market leader in Germany maybe a good pick to get a foot in the door?

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Beiersdorf: German consumer-darling on the sale rack?

The stock of the “Nivea” company for long has been an unspectacular, almost quiet compounder inside the Dax. Barely anyone talked about it, except maybe in the context of a mean management that was reluctant to raise the dividend for many years. Shares nonetheless performed well, offering a defensive and stable pick with solid returns for investors. Unfortunately, this has come to a spectacular end — shares have lost 50% from their high. Is this now a good opportunity to load up?

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Have popular consumer stocks fallen enough? + new research report

For several years now, investors have been wondering when consumer stocks will finally bottom. Once foundational safeguards across many portfolios and mainly bought for their dividends, and not their share price appreciation (though welcome), defensive consumer stocks have created strong headaches for those who bought at high multiples, ignoring the big fundamental shift that happened (Financial Engineering readers have been warned about). Naturally, at some point, there will be a bottom, though. Are we there yet?

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This Australian Stock is up +2,000% — in just a year

Who doesn’t dream about finding a stock just before it really takes off? Here comes the top performer of Australia’s ASX 200 benchmark index. A stock that has surged over 20x since last summer. And it’s not some questionable mining company — but a serious medical technology business. The company we are looking at today is set to improve and disrupt established procedures, benefitting patients and clinics. Was this 2,000% blast-off just the beginning?

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RTL Group: Is the 15% dividend worth a look?

Everyone knows linear tv is in perpetual decline. Less and less people are watching traditional television — many do not even own a tv anymore. Streaming services have grown in popularity and taken market share. Germany’s biggest private radio and television conglomerate, RTL Group, is in the midst of a turnaround by pushing its own streaming service, but also by expanding sports live broadcasts. What might lead to raising eyebrows is the company has declared a dividend yielding 15%. Could this be the ultimate contrarian play?

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Flight into mergers: the solution for “defensive” consumer companies?

One of my favorite topics (and targets for criticism) for quite some time have been consumer companies. Especially those with a seemingly defensive business model that in the past offered stability in times of market stress. This recipe does not seem to work anymore, though. First and foremost, food companies have experienced an unprecedented bear market that caught many risk-averse investors on the wrong foot. When stocks have fallen significantly, takeover interest arises. Is this a sign that shares of consumer staples have fallen enough?

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Will NextNav multi-bag through terrestrial GPS?

Practically anyone knows and, at least occasionally, uses GPS — the Global Positioning System — to navigate from one point to another. GPS is an American solution that relies solely on a satellite-based connection, but it comes with certain physical limitations. It can also be spoofed or disrupted, potentially leading to massive damages in the economy, but also other areas like safety, emergency, and the military. NextNav is a small company where the core thesis is to bring terrestrial GPS as a backup solution to the U.S. — exclusively and on existing infrastructure. Is the stock a potential multi-bagger in plain sight?

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Positioned to not get wracked by a second inflationary wave

Due to the current circumstances, in this edition I am writing a more holistic and strategic weekly. It differs from what I am else publishing. Instead of discussing one concrete stock and aiming to be more or less precisely right with my directional call, my focus here lies on sharing my thoughts. Some of them might be in an early stage, necessitating more research, but also a wait-and-see observative approach. I am giving insights into sectors and ideas I have regarding where to have an eye on, but also where caution might be the better choice.

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Does Cochlear Ltd. sound promising after a 50% drop?

The hearing-loss market is concentrated with a few companies pulling the strings. In the sub-segment of severe to profound hearing loss, the Australian company Cochlear Ltd. is the undisputed leader with a market share of more than 60%. Between 2005 and 2024, the stock 14-bagged, generating stellar returns for shareholders. Since then, however, shares dropped 50% in just two years, culminating in a 20% washout in one day after the recent results. A bit surprising for a dominating leader operating in a stable market with rising demand. Is the stock a crystal-clear opportunity or why the deafening silence from buyers?

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Inspire Medical Systems — The solution for a good night’s sleep?

Imagine you cannot sleep at night as suddenly your airways are blocked. In the best case, you “just can’t sleep”, because you wake up repeatedly due to breathing pauses. In the worst case, you suffer serious side effects from sleep fragmentation, causing high blood pressure, heart diseases, and possibly worse outcomes. Sleep apnea is a chronic disease doing exactly this. Affected patients sleep with a machine and mask combo on their face as a first-line treatment, but this brings its own side effects and burden. Inspire Medical Systems developed an implanted solution, solving many issues. Could the stock be a SWAN (sleep-well-at-night) pick?

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