26. January 2021 | 08:20 CET
Aurelius, Deutsche Rohstoff, Millennial Lithium: Together for success!
Investors appreciate clear investment stories: the hydrogen producer with the revolutionary technology or the electronics company with the hot game console. But when it comes to investing for the long term and keeping risks under control, it's also worth looking at conglomerates or companies with strong partners. Why? If a company has several arrows in its quiver, it increases its chances of hitting the bull's eye with at least one of them.
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ISIN: DE000A0XYG76 , DE000A0JK2A8 , CA60040W1059
Aurelius: Proven concept, but investors need patience
The Aurelius conglomerate has pursued this approach for many years. The Company specializes in acquiring companies with development potential, operating them, and then selling them again. In doing so, Aurelius operates in various industries and develops an individual concept for each Company to advance the respective Company. In 2020, sales at Aurelius collapsed in the wake of the pandemic. Aurelius was also unable to make unimpeded acquisitions or push sales as planned. Although Aurelius had announced anyway that it would be less of a grasshopper and more of an investment company in the future, the pandemic hit the Company.
But the difficult situation could also have a positive side. Aurelius continues to emphasize that it is not averse to opportunities on the market. In the wake of the crisis or a possible wave of insolvencies, it cannot be ruled out that the investment company could make worthwhile purchases with a view to the medium and distant future. However, this fantasy has not yet reached the market. Over one year, the share has generated a loss of around 50%. If it finds a bottom at the current level above EUR 17, it could target EUR 20. However, real momentum will only develop above this level. Investors need patience with Aurelius.
Deutsche Rohstoff: "Made in Germany" investment portfolio
On a one-year horizon, the Deutsche Rohstoff AG share is also a loss-maker. But from a chart perspective, the share looks much more promising. The stock marked a new high only recently and seems to be able to stabilize above the EUR 10 mark. This level could be a solid base for a further increase. We remember: Before the pandemic, the share was trading at EUR 15. Since then, the framework conditions for raw materials have not deteriorated.
Deutsche Rohstoff AG pursues a diversified approach and benefits from several commodities at once. Since 2011, the Company has been producing oil and gas in the USA and is also active with a subsidiary in the Rhine valley, between Karlsruhe and Mannheim. The Company coped well with the collapse in the oil price thanks to a comprehensive hedging strategy and now sees itself well-positioned for rising prices. The German raw materials pioneers extract these raw materials in an environmentally friendly way. They are committed to ensuring that their shareholdings meet environmental standards and have high social standards for their employees.
In addition to its fossil fuels business, Deutsche Rohstoff also holds stakes in the tungsten producer Almonty Industries, the Company Tin International, and the lithium company Lithium Australia. Thus, the Mannheim-based Company offers various raw materials and can be a commodity base investment for investors.
Millennial Lithium: End of a roller coaster ride?
The Millennial Lithium share shows that it can be worthwhile for private investors with a long-term focus and conservative risk profile to invest broadly in commodities. Although the shares earned 180% on a one-year horizon, very few investors are likely to hold the stock for that long. After furious weeks, the share went into a correction yesterday and rushed significantly downwards. What had happened?
A previously announced capital measure was extended. Among other things, institutional investors are pouring even more money into Millennial Lithium. What sounds good at first also has a downside. The shares of existing shareholders will be diluted even more. Also, the capital measure was completed at CAD 4 - significantly below last week's price. In the meantime, the quotations have also returned to the level of the capital increase on the stock exchange. Those who joined Millennial Lithium only last week will have to be patient until the share reaches the initial level again.