March 30th, 2022 | 11:36 CEST
Attention: BYD, Edgemont Gold, Delivery Hero, MorphoSys - Shares with the highest dynamics!
The intensity of fluctuation on the capital markets remains high. It is measured by volatility indices such as the EU Vola Index or the VIX on the S&P 500. Both indices had risen well above 30 at the beginning of the crisis, with the EU Vola Index even reaching a peak of 43.3% on March 7. At the beginning of the Corona Lockdown in February 2020, this index rose overnight to values of over 70%. Although these volatility coefficients are slowly trending downwards due to political easing tendencies, hedgers on the derivatives markets are pricing volatility into their products at a higher price. So those who are currently trading options may experience their blue miracle with Vola changes overnight. Some stocks have recently jumped in this environment; where are the opportunities?
time to read: 4 minutes
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Author:
André Will-Laudien
ISIN:
BYD CO. LTD H YC 1 | CNE100000296 , EDGEMONT GOLD CORP. O.N. | CA28008L1067 , DELIVERY HERO SE NA O.N. | DE000A2E4K43 , MORPHOSYS AG O.N. | DE0006632003
Table of contents:
Author
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.
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BYD - Like a Phoenix from the ashes
As a result of exploding commodity costs, especially for metals and energy, investors are increasingly turning their attention to the electrical segment. The market is overlooking the fact that 70% of electricity is still produced from fossil fuels for lack of alternatives. The investor is, after all, also in line with the political trend of all western industrial nations, which have made a clear commitment to e-mobility.
BYD, like Tesla, has seized the opportunity and significantly increased the prices of its electric models. Other manufacturers are already following suit or have modified price lists on the agenda. The recent sharp increases in raw material prices leave producers no choice but to pass them on to buyers. Lithium prices, for example, have risen by more than 400% within a year.
The top dogs such as VW, Tesla and BYD are leading due to their strong supply chains for batteries and other components. Chinese technology group BYD expects the penetration rate for new energy vehicles (NEVs) in China to increase dramatically in 2022. It is expected to rise to around 35% by the end of 2022, up from 22% in 2021. It was already at 28% at the end of March. BYD's stock reversed on the heels of the March sell-off to EUR 18.50 and was recently back above EUR 25. The high of EUR 36.70 is admittedly still far away. Plausibly, it can only be reached again if no world recession results from the Ukraine crisis.
Edgemont Gold - Take advantage of the first drill results as a long-term entry opportunity
Those who want to integrate gold and copper into their investment strategy should look closer at the Canadian explorer Edgemont Gold. Edgemont explores the Dungate copper-gold porphyry project, located just 6 km southeast of Houston, British Columbia. The region has a long history of successful mining projects, including the Equity Silver Mine, Imperial Metals' Huckleberry Mine, and the recent gold-silver discovery at Sun Summit Minerals' Buck Project, located just 7 km to the south.
Having acquired an interest in its first claims at Dungate in 2018, the Company now owns five properties covering 1,582 hectares that are drivable and explorable year-round. The first Phase 1 drill hole has been completed, returning gold intercepts of up to 0.44 g/t AU over a strike length of 27 meters. At first glance, this was probably too little for the market participants, and they sent the price in Canada by minus 69% into the trading evening.
In the fall of 2021, seven wells with a total length of 3,427 meters were drilled at Dungate. The target of this program was a coincident magnetics and IP anomaly 1.2 kilometers in diameter interpreted as a quartz-feldspar porphyry ("QFP") intrusion. These holes were spaced at 250 to 500-meter intervals. Recent drill results have disclosed structurally controlled gold mineralization within and adjacent to the QFP. However, the very wide spacing of the 2021 drilling was not sufficient to effectively explore this target type.
At the share price level reached, one should now take a closer look, as the Company's market capitalization is only just under 2.5 million Canadian dollars (CAD). An already fully funded Phase 2 drilling program is immediately following, starting as early as the end of April as soon as weather conditions and logistics permit. President and CEO Stuart Rogers is pleased with the initial results and comments: "With the assay results in hand, we are excited to finalize our drill plan and begin our Phase 2 drill program next month." Investors looking to bet on the next set of results can now get in at a very low level. The gold price is also inviting new investment at USD 1,912.
Delivery Hero and MorphoSys - A turnaround is possible here
In the case of Delivery Hero, the latest AdHocs from insiders read well across the board. In some cases, there are additional purchases and increases of several percentage points. That is not surprising because the share price of the online ordering service has been shaken back and forth since its inclusion in the DAX. Most recently, the growth figures had disappointed and caused the price to plummet to EUR 36.50. Exactly one year ago, however, the price was over EUR 140. If we look at the experts' estimates, the conversion is to rise in the next 4 years from EUR 9.6 to 26.2 billion. That would be an increase of over 170%. In 2026, the Company is also expected to close the year in the black. Of 20 analysts, 13 are still voting Buy, and only 7 with a Hold recommendation, the median price target is calculated in a large corridor at EUR 84.22. It currently looks like a technical breakout, which speculative investors can still follow to EUR 60-62 because only then do larger resistances threaten.
MorphoSys delivered figures in line with analysts' estimates and confirmed its slightly improved outlook. Nevertheless, R&D costs are considerable, and revenues are only slowly getting off the ground. After nearly 80% price correction, the stock appears visually cheap, but it has more than halved its value before the Constellation Pharma acquisition. One can only hope that the renewed fall of the share to EUR 24 can now serve as a basis for higher targets. At the end of last week, the EUR 26.50 mark was regained. Technically, an entry below EUR 25 seems promising but set a tight STOP at EUR 21.20.
In times of crisis, good advice is expensive. Those who bet on an easing of tensions in Ukraine in recent days were rewarded with 500 DAX points yesterday. The individual stock selection remains difficult, however. GreenTech stocks are currently doing quite well because they offer an alternative to fossil fuels. Delivery Hero and MorphoSys are rehearsing the technical rebound, and Edgemont Gold is tempting the medium-term gold and copper investor with a low entry level.
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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
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