September 7th, 2021 | 12:45 CEST
Alibaba, Barsele Minerals, K+S: Where comeback opportunities now lurk
Table of contents:
Alibaba: Socialist capitalism will prevail
Alibaba's stock has lost close to 40% of its value over the course of a year. Asia's Amazon has pretty much gone under the bus on the stock market. At first, it was "only" the burst IPO of Alibaba's subsidiary Ant Group, and then it turned into a multi-layered complex of problems. The central government in Beijing has been worried about economic stability for years. The years of upswing also brought one or two excesses. Such excesses cannot be reconciled with the socialist worldview. After Alibaba founder Jack Ma indirectly criticized Beijing, the muscle games began. Even after the Ant IPO, China is not calming down.
Stricter requirements for foreign investors and even more regulation for education providers, which are booming in China, unsettle the market and weigh on Alibaba. However, the share price has been on the rise again for a few weeks. It looks as if the stock might be able to break free, after all. Although the uncertainty surrounding China remains, investors should not get too worried. Alibaba is broadly positioned and does not operate in any critical industry with its primary business. There is much to suggest that the resentment of party higher-ups will subside, and there will be a continuation of socialist capitalism made in China. In all likelihood, Alibaba will get back on track in the long run.
Barsele Minerals: Will this setback become an opportunity?
Barsele Minerals' stock has also had a roller coaster ride. The Company, which stands for the gold project of the same name in Sweden, announced a few months ago that it wanted to take over the project entirely from the previous joint venture partner Agnico Eagle. With the terms of the purchase already set and Barsele free to continue exploration at its leisure, the agreement was considered a good deal for Barsele, not least because of the high quality of the project. However, at the beginning of September, both parties to the agreement announced that the deadline for the purchase of the project would be extended to the end of October. In the run-up to the latest announcement, the share price crumbled, leaving Barsele shareholders with a loss of around 13% over a three-month period. What could happen now?
Immediately after the announcement of the extension of the deadline, the share price of Barsele increased significantly. The project is considered promising due to high gold grades, an option to mine industrial metals, intact infrastructure and continued exploration at the expense of Agnico Eagle. CEO Gary Cope sees the Barsele project as an opportunity for many resource companies. "The Barsele project is an opportunity for many mining companies that will not come around again anytime soon," Cope said in a July interview. The stock's recent decline appears to have ended - the value is rising again. In a historical context, and given the recently renewed intention to bring the proposed transaction to a successful conclusion, investors should watch the value closely. Above all, the legally secure location in Sweden, which offers low energy costs, could be an argument for investors.
K+S: Will the takeover follow the slump?
K+S is an excellent example of where comeback shares can go if the market environment is right. The fertilizer group is still suffering from a weak balance sheet but has managed to break free since the sale of its US business. After a slump from EUR 13 to EUR 11, the share is again making dynamic gains. Above all, rising inflation rates make K+S a suitable inflation investment for many investors. In addition, there have recently been takeover rumors surrounding K+S - after all, commodity giants such as BHP Group want to invest billions in new potash projects.
The examples of Alibaba and Barsele Minerals show it - as soon as the market gets nervous during the summer slump, prices can temporarily tumble. For long-term investors, however, such events can be an opportunity. When quality and the spirit of the times come together, impressive comebacks are within reach.
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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.