Climate Change Fuels Fire Safety: Rosenbauer, Dräger in Focus

Dear Investor,

Climate change, denied by some world leaders, is becoming visible and tangible in a special way this year, particularly in Southern European countries. Forests are burning to an extent never seen before. Damages are in the billions. To halt the conflagration, not only are water and extinguishing agents consumed, but a whole range of firefighting technology, vehicles, and similar equipment is needed to master this particular enemy.

If you are thinking at this point that one can surely invest there, you are absolutely right. There are a number of companies dedicated precisely to keeping damages within limits.

An investment in fire protection is always a far-sighted and proactive investment. This doesn’t just start with a major forest fire, but already in the home with appropriate fire alarms.

We want to look at two well-known companies here that play a decisive role in firefighting and have been established in the fire equipment market for many years.

Rosenbauer International AG: Fire Departments, Airports, and Industrial Plants Order Here

The Austrian global corporation Rosenbauer manufactures not only fire engines but also turntable ladders, digital technology, pumps, and protective clothing for emergency services. Nowadays, no emergency unit involved in firefighting can bypass these products.

There are no specific seasons for purchasing outdated emergency equipment. Rather, obsolete or worn-out material is replaced at regular intervals. This is even partially required by law, so there can be no waiting around.

Regardless of this, Rosenbauer is also subject to typical market fluctuations, which is why it is important to pay attention to utilizing specific phases. An imminent, very positive phase begins on August 7 and boasts a very good ratio of 16 to 5 positive to negative years, with an average return of almost 8%. For this period, which spans almost exactly one month, this is an excellent return.

Seasonax chart on the seasonal performance of Rosenbauer International (firefighting) from August 7, 16 out of 21 years positive, average 8% return.
Rosenbauer International: The seasonal phase starting August 7 was positive in 16 out of 21 years, with an average return of almost 8% over about one month. Source: Seasonax | View Pattern

But the two positive phases in spring also catch the eye. From February 7 to March 1, an average gain of over 9% can be achieved in 17 positive phases. The period from March 19 to April 26 also offers an excellent average performance of over 11% in 18 positive phases, while the 5 negative phases only lose just over 3%.

With Rosenbauer, good performance can therefore be achieved throughout the year using seasonal effects.

Drägerwerk: No Operation is Conceivable Today Without Respiratory Protection

What was unthinkable in earlier years is now indispensable in firefighting operations: self-contained breathing apparatus. One of the absolute leading brands for these devices is Drägerwerk, which manufactures respiratory protection equipment that guarantees the survival of every firefighter in the event of an emergency.

With this stock, the high volatility that stretches over several years is particularly striking. However, a statistical phase also stands out that can be used for investment. For instance, a particularly positive phase begins on December 20, offering 19 to 6 positive periods. In the 19 positive years, an average of 28% could be achieved, though in negative years, an average loss of just over 13% also had to be endured. The described period lasts until April 28.

Seasonax chart on the seasonal performance of Drägerwerk AG from December 20 to April 28, 19 out of 25 years positive.
Drägerwerk AG: The seasonal phase from December 20 to April 28 was positive in 19 out of 25 years, with an average 28% gain compared to a 13% loss in negative years. Source: Seasonax | View Pattern

Conclusion: It’s Not Just Climate Change Driving Firefighting Suppliers

It is not only current events and the associated insights into climate change that play into the hands of suppliers. In daily life, fires or other emergency service operations occur repeatedly, requiring corresponding material that must be constantly renewed.

You can benefit from the seasonal effects described above and use the proceeds to do something for fire protection yourself by making preventive investments so that the fire department doesn’t have to show up at your place in the first place. Seasonax wishes you much success and a worry-free, fire-free summer with hopefully good stock market results.

Take advantage of the benefits and use Seasonax for your professional approach to seasonal patterns!

Best regards,

Christoph Geyer, CFTe
Winner of the Stock Analyst Award for Technical Analysis

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