Close menu

September 13th, 2022 | 10:15 CEST

Back to basics: JinkoSolar, Alpha Copper, Varta

  • Mining
  • Copper
  • renewableenergies
Photo credits:

Without energy, everything is nothing. Every craft business, for example, in metal processing, depends on energy. The need in industry is much greater. But how can investors profit from the energy turnaround? Are the obvious stocks really the best choice? Or is it more promising to think very fundamentally? Here is an analysis between groundbreaking opportunities and solid basic investments.

time to read: 3 minutes | Author: Nico Popp
ISIN: JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , ALPHA COPPER CORP | CA02074D1087 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:

    JinkoSolar: Be careful with these risks

    JinkoSolar's stock has gained about 26% over the past year. In recent months, some disillusionment has set in around the Company. The reason: solar companies like JinkoSolar may have a special boom, but they are still cyclical. When commodity prices rise sharply, margins dwindle. Since competition is fierce, the costing of companies like JinkoSolar must "breathe." This is also true because current PV modules can all score with comparatively similar good quality. That makes it easy for buyers to pay attention to the price. The price is also a good argument for craftsmen responsible for selling modules in this country. Customers ultimately decide based on how much a PV system costs, including materials and installation. Companies are aware of this.

    Nevertheless, the general big picture is rosy for companies like JinkoSolar, with demand up more than 100% in the second quarter of 2022. However, this particular economic situation has long been priced into the stock. JinkoSolar is well positioned due to its market position, but investors should not forget that the stock is more cyclical than many think. The equity ratio of around 14%, which is not exactly lush, also carries risks. For example, if interest rates in China also started to rise. Caution is advisable with the JinkoSolar share.

    Alpha Copper: The profit lies in the purchase

    Investors were also cautious about the Canadian copper company Alpha Copper. In the wake of general economic concerns, investors took to their heels and sent the Alpha Copper share into negative territory in recent weeks. In the meantime, the share price has fallen below its stock market debut in May of this year. Operationally, the Company, which originally operated two copper projects in the Canadian district of British Columbia, has recently made further progress: In August, Alpha Copper announced the acquisition of CAVU Energy Metals and, thus, two additional copper-related projects. What is special about the acquisition in a weak market environment is that the two new projects, Star and Hopper, have already been drilled extensively and shine with grades of up to 1.4% copper.

    Exploration work is currently taking place on the Indata project and is expected to be completed by the end of the year. Okeover is also expected to make progress this year. Alpha Copper thus offers access to no less than four promising copper projects. Copper is one of the most important metals in an electrified world. Both classic industry and GreenTech are inconceivable without copper. The wave of selling in the wake of recession fears may be unjustified - after all, Alpha Copper is far from potential production and more of a bet on the future. Given its projects in promising locations and the Company's clear direction, Alpha Copper could become the leading wolf among Canadian early-stage copper companies. Anticyclical investors, in particular, should have the stock on their radar.

    Varta: Has the market not understood the stock?

    One item that has felt like it has barely moved on the radar for years is Varta's stock. Varta is world-renowned for its button cells for hearing aids and consumer electronics. The very big players in the industry, such as Apple, rely on the German manufacturer. A long time ago, they wanted to take a swing towards batteries for e-cars. But the plans have long since become a kind of running gag in investor circles - little has happened so far. In February, the Company founded Pertrix, a subsidiary for this e-car business. At the end of May, it received its first order for a battery cell for e-cars with a 6-minute fast-charging capability. The cell is to act as a kind of booster in sports cars, among other things, and not be the sole energy supplier. The news did not provide any impetus to the Varta share price - the value recently supported in the direction of the EUR 60 mark. The share has thus been in a downward trend for a year.

    All beginnings are difficult. That could explain Varta's entry into the e-car business. However, it is also possible that the market has not yet fully understood the potential of the technology. The JinkoSolar share is by no means a sure-fire winner either - margins are quickly squeezed in the solar sector. Alpha Copper, on the other hand, has no operational problems to contend with. While things can go wrong in the search for copper, at the current stage, the primary objective is to highlight opportunities. If this succeeds, the market could reward the newly gained perspective. If the drilling results are good, the current fear of recession should roll off Alpha Copper in the medium term.

    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

    Related comments:

    Commented by Armin Schulz on February 21st, 2024 | 07:30 CET

    Barrick Gold, Desert Gold, Renk - Golden times everywhere?

    • Mining
    • Gold
    • Defense

    The world is full of economic uncertainty and geopolitical tensions. These are ideal conditions for gold, which is still considered a safe haven. There are now several factors that point to a sustained upswing in gold prices. One factor is the increased involvement of central banks, which are increasing their reserves to an extent not seen for decades. Another factor is the discussion within the BRICS nations about introducing a new currency backed by gold as a counterweight to the dominant US dollar. Therefore, today, we look at two gold companies and shed light on Renk, a representative of the defense industry, which is also experiencing golden times.


    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.


    Commented by Fabian Lorenz on February 21st, 2024 | 07:00 CET

    Top news: BYD, Bayer and Globex Mining

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • chemicals

    Bayer shocked investors yesterday with the announcement of its dividend cut, which shouldn't have been much of a surprise. The Company is burdened with high debt, endless legal fines, and an empty pharmaceutical pipeline. In an initial reaction, analysts have lowered the share price target. BYD, on the other hand, is doing well operationally. Only the share price is not picking up. Will a share buyback turn the share price around? For those who want to profit from the commodity boom with reduced risk, then Globex Mining's stock is attractive. The news flow is strong, and those who act quickly can still register and follow the live presentation of the mining incubator at the 10th International Investment Forum, IIF, today.