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October 21st, 2022 | 11:03 CEST

100% chance with ThyssenKrupp, Varta, Tocvan Ventures and Nel ASA: Lay the foundation for the future now!

  • Mining
  • Gold
  • GreenTech
  • Batteries
  • Hydrogen
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Currently, the daily news is not a source of much joy. However, there are opportunities in many of the reports that can quickly turn into cash after the current correction. It seems crucial to focus on stocks that, despite an adverse environment, keep their medium-term goals in mind and can demonstrate a robust business model. Here are some examples showing long-term development potential.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: THYSSENKRUPP AG O.N. | DE0007500001 , VARTA AG O.N. | DE000A0TGJ55 , TOCVAN VENTURES C | CA88900N1050 , NEL ASA NK-_20 | NO0010081235

Table of contents:

    Varta - Battery technology at sell-out prices

    The battery specialist from Ellwangen has not brought its investors any joy so far in 2022. After three sales and profit warnings, the management had most recently removed any guidance from the market because no reliable statements can be made in the current environment. This is understandable, as the high raw material and energy prices have completely shaken up the calculations for production and sales. Positive margins can no longer be achieved today with the sales prices negotiated 12 months ago. Prices will have to rise substantially, but this cannot be done overnight.

    With an understanding of the operational situation, it is nevertheless not a good sign when insiders still tend to sell in difficult times instead of sending out positive signals to the less informed shareholders. In late summer, the Chairman of the Supervisory Board, Prof. Dr Michael Tojner, sold shares worth millions. He has now been followed by another Supervisory Board with portfolio reductions at average prices of EUR 28.45, as seen from the latest AdHoc announcement. Even if supervisory board members have to pay their taxes, timing has a high external impact, especially in difficult corporate phases. After all, the annual low of EUR 27.26 on October 13, 2022, can be explained by this.

    The recovery movement of the last few days could at least lift the price back above EUR 32. Whether the current momentum is suitable for higher levels will be shown at the latest on November 15, when Varta reports on the third quarter. The Varta share certainly has huge potential due to its future technologies in the battery market, but it trades at 2022/23 P/E ratios of over 20 and is currently only growing at a below-average rate. The task now is to overcome the crisis!

    Tocvan Ventures - The next steps in Mexico

    Due to high inflationary pressures, diversification into gold and silver currently makes sense. But with spot prices distorted by liquidity woes, investors should also consider dormant precious metal reserves in the ground. At Canadian explorer Tocvan Ventures, things are moving in the right direction. With two substantial gold projects in Sonora, Mexico, the budding resource company from Canada reported good drill results from their first 1,382-meter program in late summer. Mineralization grades at the Pilar project ranged from 0.4 to 12 grams per tonne, and work is now being extended to the second El Picacho property.

    Preparations for the first drill program at the El Picacho gold-silver project in Sonora have been underway since October. After a longer-than-expected rainy season due to poor weather conditions in the region, they are now starting the operating season. Drilling is expected to continue until June 2023 as the Company evaluates the potential of several target areas at Picacho and continues exploring its Pilar project. All target areas have historical workings with high-grade gold-silver mineralization, but nearby lower-grade zones are also of interest.

    "We are very excited to be back in Sonora as we prepare for our first drill program at El Picacho and evaluate and prepare for the next steps at Pilar," said CEO Brodie Sutherland on the sidelines of a tour of the two gold projects with investors and industry experts. Great interest in the projects was also shown at the Core Shack trade shows and the annual Discoveries Conference in Hermosillo. At a current price of CAD 0.57 per Tocvan share, the market valuation of the properties is a low CAD 21.3 million. The leverage on a rising gold price is enormous because the metal can be extracted cost-effectively in Sonora using the open pit method.

    Nel ASA and ThyssenKrupp - Hydrogen is becoming a real alternative

    For years, engineers worldwide have been researching resource-saving alternatives in energy production. One approach could be to use green electricity to produce hydrogen. The significant advantage: H2 is particularly reactive and has a high energy density; moreover, it burns without producing harmful climate-damaging substances. That makes it possible to optimize storage processes and develop new environmentally friendly propulsion forms. The current research areas are stationary energy generation and the development of H2 drives for vehicles in continuous use, such as in the transport and logistics sector.

    ThyssenKrupp AG is already making good progress in the US with its H2 subsidiary Nucera. Here they are supplying engineering services for the alkaline production of hydrogen to various Air Products sites for the mobility market in California. Unfortunately, the Duisburg-based company had to postpone the planned IPO of Nucera indefinitely. The Company could have used the many millions from the IPO for further H2 projects.

    Nel ASA yesterday reported its figures for the past third quarter. With a drop in sales from NOK 229 million to NOK 183 million, the Norwegians were clearly below analysts' estimates of an average of NOK 236 million. The EBIT loss of NOK 260 million was even higher than sales, but this is not tragic for a growth company. After all, the Company still has a cash balance of NOK 3.5 billion and generated an order intake of NOK 775 million, which now needs to be transformed into cash. The share price fell again by 5% at the start of the trading day, but the EUR 1.00 mark was valiantly defended. In the evening, the stock left the market unchanged at EUR 1.11. ThyssenKrupp shares fared better, jumping 20% from their last low to over EUR 5. Due to the dynamic development in the hydrogen sector, both stocks are suitable long-term investments with growth potential.

    Alongside e-mobility, the energy transition is the key driver for innovations in the GreenTech sector. ThyssenKrupp and Nel ASA have received many orders, and Varta is working on a super battery. The gold explorer Tocvan Ventures is making step-by-step progress in Mexico and should soon be delivering properly.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by André Will-Laudien on December 1st, 2022 | 13:18 CET

    Who builds the best battery? Varta, Altech Advanced Materials, SFC Energy, IBU-tec - The entry is tempting!

    • Energy
    • renewableenergies
    • GreenTech
    • Batteries

    Three years ago, the Chinese battery market leader CATL presented its cell-to-pack technology to the world for the first time. A new battery with this design is now said to give e-vehicles a range of 1,000 km and super-fast charging in just 10 minutes. According to CATL, the "Qilin" battery is more powerful than Tesla's 4680 cells. CATL plans to begin mass-producing the new battery in 2023. Whether the promised distance will be achieved, however, depends on the size of the installed battery and the vehicle's aerodynamics. In Europe and North America, research and development is also being carried out at full speed because the market for e-mobility still promises growth of over 30% per annum. What is the current status in Germany?


    Commented by Juliane Zielonka on December 1st, 2022 | 13:09 CET

    First Hydrogen, Tesla, Volkswagen - Hydrogen or battery drive, who makes the race?

    • Hydrogen
    • Electromobility
    • GreenTech

    The German Federal Ministry of Research and Education has big plans: the natural gas network is to be converted as a supply structure for hydrogen so that Germany is well equipped for the future. The Canadian company First Hydrogen is betting on hydrogen propulsion, launching its first production facility in Quebec. A call for leadership is being heard regarding Elon Musk and his car company Tesla. It seems that a blue bird and the desire for freedom of expression are taking up so much of his time that the share price is wobbling. The competition is not sleeping: Volkswagen is currently number one in Europe with its EV models. Who will make the race?


    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?