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Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


02. June 2021 | 08:18 CET

Adler Modemärkte, Steinhoff, Carnavale Resources: Where gambling pays off and why

  • Investments
Photo credits: pixabay.com

Anyone who has money can speculate. If you have no money, you have to speculate. That is how stock market veteran André Kostolany once put it. But only very few people know what a good speculation is. As a rule, private investors are too late when it comes to promising speculations. Only those who recognize good stocks in time and understand the investment stories behind them can score with speculative stocks in the long term. We outline how this works and what investors should look out for, using three stocks as examples.

time to read: 3 minutes by Nico Popp


 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


Adler Modemärkte: How long will this stock remain hip?

The Adler Modemärkte share has recently risen significantly. In just four weeks, the value climbed from EUR 0.19 to EUR 1.37 - that's more than 600%. But why did the share rise so much? Adler Modemärkte was already not in the best of shape before the pandemic. The online business was struggling, and in general, the chain was seen more as a shopping destination for older people. Then came the pandemic and the Company slid into insolvency. Under its own responsibility, Adler is planning to escape bankruptcy once again. The proceedings have been underway since January. In the meantime, the signs are pointing to an opening again - the pandemic has weakened. In addition, Adler received a loan of EUR 10 million in May, which would allow the stores to be restocked with merchandise and the business to continue. After all, Adler employs around 3,200 people.

The fact that the share price has recently risen so much gives hope but is also a warning signal. It is by no means the case that the cow is off the ice for Adler. Although the insolvency under its management offers the Company a variety of opportunities and the loan granted the chance of a fresh start, the situation remains fragile: both at Adler itself and around the pandemic situation, nothing can be ruled out in the medium term. While the relatively old customer base could be a plus for Adler, as they store less online and are more likely to be vaccinated, a new lockdown in the fall could turn the situation for the worse again. Adler's stock was a good speculation, but given the increased price, it is no longer.

Steinhoff: Anything is possible - but the opposite is too

The air is also out at Steinhoff. The furniture group from South Africa is facing lawsuits worth billions due to irregularities in its balance sheet. The Company was already on the verge of bankruptcy because of this. For months, investors have been speculating about whether the legal dispute would soon be resolved and a settlement reached. But this settlement is still a long time coming. After a dynamic development, the share is currently trapped between EUR 0.11 and EUR 0.12. Although the share price may surge again, setbacks are likely. Even after positive news, it remains to be seen how profitable the furniture business can be and whether the stock is even much more attractive without litigation.

Carnavale Resources: Gold, platinum, industrial metals for EUR 9 million

Unlike Adler Modemärkte or Steinhoff, the Australian Company Carnavale Resources is not a stumbling company. The Australians operate four promising projects in Western Australia around gold, platinum metals, nickel and copper. Thus, in addition to the trend towards gold, the Company also covers the increasing demand from companies around electromobility. The Carnavale Resources share must be considered highly speculative. However, the reason is not the Company's situation but its strategy: Carnavale takes raw material projects under option at low cost, carries out exploration work, and decides whether it is worthwhile to buy the respective project. Based on fixed purchase agreements, the Company can take its time with exploration or push ahead with the purchase, which is easy on the wallet and gives flexibility.

Carnavale Resources aims to use innovative exploration methods to obtain indications of potential drill targets at an early stage of projects. The smallest particles in soil samples can be analyzed and examined for their origin. Carnavale then uses this information to continue its work. At the Kookynie Gold Project, initial drilling has revealed high-grade grades at 2 meters over 16.25 g/t gold or 2 meters over 3.11 g/t. Further drilling is planned to investigate the structure of the rock between these high-grade areas. Carnavale is operating four projects of different orientations, looking to develop these further in 2021, and valued at only around EUR 9 million; the share can be considered a promising speculative stock.

Conclusion: Clear business model instead of a unique situation

While the principle of hope rules at Adler and Steinhoff and the companies are in an exceptional situation, exploring projects at an early stage is part of Carnavale's daily business. In addition, the share has not yet been so clearly discovered by the market. One reason for this could be the high number of shares. Australian companies typically have many shares outstanding, which leads to very low share prices. However, the bottom line is that this is only an optical phenomenon: At EUR 0.004, it is essential to strictly limit orders and give the market time until an order is executed.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


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  • Investments

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Adler Modemärkte, Steinhoff, Osino Resources: Which penny stocks have substance?

  • Investments

Penny stocks often have something disreputable about them - at least in Germany. As soon as a share is quoted at less than EUR 1 in Germany, it is considered to be at risk of insolvency. The reason for this is that the minimum nominal value of German stock corporations is EUR 1. Abroad, however, things are quite different: In Australia, it is not uncommon for shares to trade even below one cent. For investors who are used to this, it is anything but disreputable. In concrete terms, it all depends on the companies themselves anyway. We profile three companies that are either penny stocks or were, not long ago.

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Daimler, Mineworx Technologies, BASF: Investing in the mobility revolution

  • Investments

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