September 22nd, 2020 | 09:20 CEST
Almonty, BASF, Bayer: where is it worth starting now?
The start of the week was marked by price losses. In Europe and North America, the leading indices closed in the red. The fear of further effects of the Corona Pandemic has dampened market sentiment. Given that the banknote presses are still running, the breather on the capital markets is again likely to be short-lived. At the time when a vaccine against Covid-19 receives approval, the economy will once again experience an unleashed boom - provided that people can and may want to return to their jobs. Which shares are worthwhile now?
time to read: 2 minutes
|
Author:
Mario Hose
ISIN:
CA0203981034 , DE000BASF111 , DE000BAY0017
Table of contents:
"[...] We have built one of the largest land packages of any non-producer in the belt at over 440 sq.km and have made more than 25 gold discoveries on the property to date with 5 of these discoveries totaling about 1.1 million ounces of gold resources. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.
Author
Mario Hose
Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.
Tag cloud
Shares cloud
Access in Europe and Asia
The Canadian tungsten producer Almonty Industries operates mines in Portugal and Spain. The company has plans to secure future access to the hardest metal on earth in South Korea. The deposit in South Korea is one of the largest of its kind in the world. The importance of this project for Almonty is therefore significant, as it will enable the company to meet the growing demand for the critical raw material.
State support for supply
One of the largest suppliers of tungsten in the world market is China, which has an almost monopoly-like position. The dependence of the other industrialized countries cannot be denied. However, with increasing prosperity, the demand for tungsten is also increasing in China. For this reason, industry representatives are concerned about the future supply for the market. The German Kreditanstalt für Wiederaufbau (KfW) is helping companies in the sector to secure access. In this context, KfW has also committed USD 75 million in project finance to Almonty so that the Sangdong project in South Korea can be further developed.
Fear of market dominance
According to a survey of US executives, 63% of respondents responding to the main challenges in the raw materials supply chain said that it was detrimental to their business that China controlled too much of the supply. A further 74% said that the greatest threat to their manufacturing business over the next 12 months would be disruptions and restrictions in the supply chain. It is clear that Almonty's work is of increasing importance.
Competitive disadvantage in the US increasing
"It is a dangerous time for U.S. manufacturers to face a limited supply chain of precious and strategic metals that are so important to the industry, businesses, and consumers today," said Lewis Black, CEO of Almonty and continued: "Covid-19 has put unwanted economic pressure on many U.S. manufacturers, in addition to the trade war between China and the U.S., which has already put U.S. industry in price and financial trouble."
Diversification for the portfolio
While Almonty's market value of around CAD 138 million is still low compared to the DAX companies BASF and Bayer, the two large companies are also worth considering an investment. BASF currently has a market capitalization of EUR 46.5 billion and Bayer EUR 52.9 billion. Almonty offers an opportunity to participate in the value creation of critical raw material. The analysts of First Berlin rate the share with a target price of CAD 1.45 as 'buy'.
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.
