Close menu




December 28th, 2020 | 10:48 CET

Alibaba, FuelCell, Desert Gold - Bet on gold!

  • Gold
Photo credits: pixabay.com

The long Christmas weekend still shows minor after-effects on the scales, but the Bitcoin has gained weight, it reached a new high yesterday at almost USD 27,700. A small correction usually follows, and it then continues to go up. We will see what is started as a new target zone. Analysts attest the cryptocurrency potential to over USD 100,000. Meanwhile, some old acquaintances are making their presence felt on our watchlist. Alibaba, the "Amazon" from China, collapsed, and FuelCell Energy first rose after bad news and then lost over 15%. Gold, however, stalked back up unnoticed at USD 1,870. The Joe Biden stimulus package of USD 900 billion suggests inflation - that's causing Bitcoin to rise and gold is also coming back into fashion.

time to read: 3 minutes | Author: André Will-Laudien
ISIN: CA25039N4084 , US35952H6018 , US01609W1027

Table of contents:


    Alibaba - The government intervenes

    Alibaba can't get out of the negative headlines. The online business is developing less strongly than expected, and diversification is working out rather poorly than okay. Alibaba is trying to diversify its business with its manageable online margins into other sectors, especially financing and insurance, similar to its big role model from Seattle. The controversial Ant Group, in which Alibaba holds more than 30%, had to cancel its IPO in November unexpectedly. Now the government is harbouring new antitrust concerns.

    China's central bank has ordered investor Jack Ma's Ant Group to refocus on its original core business. According to a statement issued by the central bank over the weekend, the financial firm should purge its business of lending, insurance, and asset management. Instead, Ant Group should return to its roots as a provider of payment services, it said.

    While the central bank did not directly order the group's breakup, it made it unmistakably clear to the leadership that diversification efforts are to be shelved. The group will now have to set up a separate financial holding company with sufficient capital. The regulator also accused Ant Group of having too much market power, damaging competition, and hurting the interests of hundreds of millions of consumers. Thus the original voice from Beijing.

    The Chinese central government recently changed the requirements for the lending business. In the future, after various restrictions, 30% equity is also to be required to be able to grant an online loan together with banks. The Alibaba share has moved away steadily from its high of EUR 271 and sitting currently at EUR 210. The chart is trending strongly south, within a month about 10% is missing in the price. The correction should not be over yet given the heavy crossfire.

    FuelCell - Bad news, but frothing share price

    Again, bad news for a hydrogen company. Californian fuel cell power plant operator FuelCell Energy has problems with several public tenders. As the Company surprisingly announced in a press release, FuelCell was deprived of state awards for three important projects. The stock was initially undeterred and rose to a new 52-week high over the week.

    FuelCell CEO Jason Few railed against the government agency's decision, saying it improperly revoked previously approved state RFP awards for three fuel cell projects under the Shared Clean Energy facility program. The revocation of government contracts is likely to result in significant revenue losses for FuelCell Energy in the near future. The fact that the share could climb to a new 52-week high is utterly irrational from a fundamental point of view and is probably due to the euphoria about tax breaks for green developments in the USA.

    The share price even peaked at USD 13.90, bringing the market capitalization to over USD 4 billion. Even in FuelCell Energy, there have been no profits yet, with a manageable turnover of just USD 65 million. Due to the hydrogen hype on the stock exchange, companies that are still at the beginning of their development and still have many breakdowns to go through are already endowed with valuations in the billions.

    Desert Gold - A good setup for 2021

    As we already suspected, after the "tax loss season", the price of Desert Gold is now also stabilizing. Over the late summer, the share suffered from the higher consolidating gold price, which corrected from a peak of USD 270. Producing gold mines had partially halved in price, with the explorers the consolidation made different waves, the Desert price is now stable on the market for a few days at CAD 0.15.

    We look at the current projects, as Desert Gold has now submitted its plans for 2021. An additional and exciting part is the start of the drilling program of the joint venture partner Indigo Exploration, which has started its work program on the Djimbala gold project in southern Mali, West Africa. The Company's flagship project is the Senegal Mali Shear Zone project, which covers 410 square kilometers in West Mali.

    Gold has a very long tradition in Africa, at least since the vast discoveries in South Africa. Today, major gold producers have set their sights on the continent once again to replace the partially expiring mines worldwide with new projects. Suppose Indigo's drilling proves successful in the short term, in that case, a major producer could acquire the entire concessions by making a takeover offer to Desert Gold who is sitting with a current total value of CAD 21 million. Desert Gold is currently also working on is assets, which could increase the value as well.

    On the charts, gold should push through the USD 1,900 level again to the upside in the next few days. That's going to be year-end fireworks for some explorer stocks. Stay tuned for Desert Gold, because things can happen very quickly!


    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.

    Risk notice

    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.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    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 Fabian Lorenz on May 12th, 2022 | 11:12 CEST

    BioNTech, BYD and Desert Gold: Shares for the rebound

    • Gold
    • Electromobility
    • Biotechnology

    Is the rebound coming? After the heavy price losses of recent days and weeks, the market seems ripe for a countermovement. However, this would require a little more volume in the market. But then, especially companies that have not disappointed operationally should profit. BioNTech, for example, belongs to this group. The Company has published convincing figures, and analysts see up to 50% price potential. BYD's share price should also pick up speed again. Finally, the rapid shift to electric pureplay seems to be succeeding and HSBC has raised the price target. Gold was not a safe haven in the current correction. But it is worth looking at bombed-out stocks here as well. Desert Gold Ventures is one of them. The explorer has started a new drill program and secured financing.

    Read

    Commented by Armin Schulz on May 6th, 2022 | 10:43 CEST

    Barrick Gold, Edgemont Gold, Rio Tinto - Are gold stocks taking off again?

    • Gold

    With the start of the Ukraine crisis, the gold price skyrocketed, but since March 8, we find ourselves in a consolidation. The 200-day line is currently holding, and it could go up again from here. But let's look at the reasons for the weakness in the gold price. On the one hand, there is the strong dollar, which naturally puts pressure on the gold price, and on the other hand, bond yields in the US are climbing again. After the FED announced on May 4 that it would not raise interest rates by more than 0.5 percentage points, which was originally feared, the gold price jumped again. Demand for physical gold remains high. We look at three companies in the gold sector.

    Read

    Commented by Stefan Feulner on May 5th, 2022 | 10:46 CEST

    Rheinmetall, Triumph Gold, K+S - Hype or sustainable?

    • Gold
    • fertilizer
    • Defense

    Already during the Corona pandemic, clear winners and losers could be identified. Vaccine manufacturers multiplied, and companies related to online trading also performed better than the market. In the current Ukraine crisis, however, the signs are changing. Suddenly, defense stocks, which were frowned upon a short time ago, are all the rage. Fertilizer companies, benefiting from the sanctions and the resulting supply shortages, are also gaining favor with investors. But how sustainable are the current increases? Gold mining stocks are also doing very well, but in contrast to Rheinmetall, Hensoldt & Co., they are performing much weaker.

    Read