Half of the Internet services companies listed on Germany’s Neuer Markt stock exchange are seriously in danger of financial liquidity problems, according to a study commissioned by the newspaper Financial Times Deutschland.
The newspaper, in its Monday edition, said the study is the most comprehensive ever conducted on the young tech exchange. In contrast to previous such studies, it factored in not only the companies’ current liquidity, but also their chances of raising new cash on the stock market.
Researchers at the private Witten/Herdecke University looked at 68 companies in the areas of Internet services, biotechnology, and “Internet enablers” (enterprises offering tools and services to other online businesses). They divided the companies into three groups: seriously, moderately, and slightly endangered. Of the 30 Internet services companies studied, 16 fell into the most at-risk category.
A total of 31 companies were termed seriously in danger. Other than the 16 Internet services companies, these included 14 Internet enablers and one biotechnology company.
The areas of Internet and biotechnology were chosen because at the beginning of the year they were favorites of investors, the paper said, adding that the study indicates biotech has fared better in the meantime than the Internet branch.
Witten/Herdecke University can be reached at http://www.uni-wh.de/.