June 28th, 2021 | 12:57 CEST
Alibaba, Blackrock Silver, First Majestic Silver - Why July 1 is so important
Table of contents:
"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Alibaba - All signs are green
Like so many tech companies, Alibaba already had a dispute with the government and collected a fine of EUR 2.3 million for it. Since then, the Company has kept a low profile and has opened up new business areas instead of suing. It continues to work on dovetailing online and offline purchases. In addition to the Freshippo supermarkets, 3 Store-X stores have been opened. These offer membership and are attracting large crowds with all kinds of extras such as free delivery, car washes, optician services, etc. The concept is aimed at the upper-middle class, which is growing particularly fast in China. You go shopping in a relaxed way, scan the goods you want to buy via an app, and everything is packaged for you. The first of the Store-X stores was already profitable after 2 months. This year, 8 more stores are planned.
In addition to new business areas, the old business areas are generating more and more profit. In the cloud sector, in particular, the Group has now taken the lead. Digitalization is advancing everywhere in China. There was a 55% growth in cloud infrastructure services in the first quarter alone. By 2028, the Chinese economy is expected to be the largest in the world. According to McKinsey, the middle class will grow to 550 million people by the end of 2022. With all these growth rates, investors will be more engaged there. If we compare Alibaba's valuation with those of Amazon and Google, the stock is significantly undervalued. Of course, this is related to the uncertainty caused by the Chinese government.
In the long run, an investment in Alibaba will pay off. The stock seems to have found a bottom because, after the double bottom, the breakout above the EUR 185 mark has been successful. A setback may still occur, but it should not go below EUR 169.70.
Blackrock Silver - Strategic partner won
Shortly after my last analysis on Blackrock Silver, the Company announced outstanding silver and gold deposits in Tonopah West, Nevada, on May 5. Up to 3,075 grams of gold per ton, 1,722 grams of silver per ton and 3,322 grams of silver equivalent per ton were found. 53,000 meters of drilling have been completed and 17,000m remain to be drilled. Already 10 high-grade veins ranging from 400m to 1.5km have been identified.
Since May 18, the silver rally has taken a breather and the silver price corrected by USD 2.70, or a good 10%. Management timed the May 17 financing round of ultimately CAD 10 million perfectly. Shares were issued at CAD 0.75, and a strategic partner was acquired in the form of First Majestic Silver, which participated with a total of CAD 2 million. The Company is now sufficiently capitalized to complete exploration as planned by the end of the year and provide a resource estimate.
The stock, which has risen 50% since the beginning of May, has also come back in the wake of the weakening silver price and is trading at CAD 0.95. The breakout level is located here and should serve as support. Should this mark fall, the next target would be the 200 moving average at CAD 0.84. Those who are bullish on silver invest their money well here.
First Majestic Silver - Must reinvent itself
Anyone who has been paying attention to First Majestic Silver for a while, but has lost sight of it a bit in recent months, will be surprised to hear the news about its investment in Blackrock Silver. That is because the Company has only ever been active in Mexico before. One of the reasons could be the acquisition of the Jerritt Canyon Mine on April 30. Since it was difficult to find an exciting silver mine, they decided to go for a gold mine outside Mexico, in Nevada.
The weakness of the silver producer lies in the life of its existing mines. The reserves are coming to an end and the remaining life is expected to be about 6 years. Against this background, the move to Nevada and the investment in Blackrock Silver makes sense. Blackrock had announced considerable gold and silver discoveries only shortly before and is also working in Nevada. If the resource estimate is of a magnitude that First Majestic Silver agrees with, the Company already has a foot in the door for a takeover.
The stock is currently trading at CAD 19.38 and trying to form a bottom. As long as there is no closing price below CAD 18.20, the sideways phase remains. Above CAD 22.75, it would be significantly more bullish. One should wait until the silver price turns again and then see whether the share runs accordingly.
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.