Close menu




April 30th, 2021 | 08:40 CEST

BASF, Saturn Oil & Gas, K+S: Three stocks for a yield kick

  • Oil
Photo credits: pixabay.com

Investors who want to add a few yield drivers to their portfolio have several options. In addition to solid blue chips, which offer little share price excitement but steady dividends, investors can also focus on growth stocks and small caps. Although there are always those who categorically rule out growth stocks for cautious investors, this is not entirely true. Those who control risk via position size can also invest speculatively without having to abandon their fundamental strategy.

time to read: 3 minutes | Author: Nico Popp
ISIN: DE000BASF111 , CA80412L1076 , DE000KSAG888

Table of contents:


    BASF: A Company in transition

    First, we look at blue chips that grandfather already had in his portfolio. One of these stocks is undoubtedly BASF. The chemical giant from Ludwigshafen is a true global player and is active in around eighty countries. For long stretches of 2020, business was not exhilarating for BASF despite its solid market position. Costs are still too high. In 2020, this was exacerbated by the low prices for oil and gas. However, the latter problem should have dissipated by now.

    The structural problems weigh more heavily in any case. BASF is therefore preparing to rethink structures and processes and wants to become leaner. At the same time, the Company has divested its construction chemicals business. On the stock market, BASF's problems are creating a diffuse picture in the long-term chart. Over three years, the share has lost 17.6%, but there is a solid profit of almost 50% over the year. Beyond the EUR 72 mark, the share could also pick up speed again in the long term. However, BASF remains a Company in transition.

    Saturn Oil & Gas: What is the market waiting for?

    The Saturn Oil & Gas share is also in a state of upheaval. What was once Canada's most profitable oil producer announced more than a year ago that it wanted to reinvent itself and turn a bigger wheel in the future. Specifically, the Company meant looking for takeover targets. To this end, Jean-Pierre Colin, a proven expert, joined Saturn as a strategic advisor in the fall. Since then, however, it has been quiet around the small but fine Company.

    This silence, however, has not harmed the share price: the value is trending sideways and shows solid support. Anyone with many years of experience with Saturn Oil & Gas knows that it usually pays to wait and see. Even when Saturn was regularly drilling new wells and growing strongly organically, the management team always kept its word and pursued its goals consistently and quietly. The plans to use Saturn as a takeover vehicle and contribute its energy resources expertise to even larger projects are not off the table. Instead, the chart has signaled a certain tension since the turn of the year and is trending slightly upwards. As an expert in oil and gas, Saturn is well positioned in a market phase in which oil is again heading for USD 70. In addition, the prospect of a surprise is great. The stock remains speculative, but the management team, which has now been in place for many years, certainly has credit in the market. Saturn is suitable as a speculative portfolio addition and is good for surprises.

    K+S: Caution, not a sure-fire winner

    K+S has also been traded for months as a stock with prospects. In the long-term chart, the fertilizer specialist looks like an emerging comeback story. However, investors should also pay attention to the fundamental facts in addition to the price trend. There are not only positive signals here. Although rising commodity prices are a good signal for K+S, there are still gaps in the balance sheet, which recently led to write-downs. Although the allegations of irregularities in the balance sheet now seem to have been largely dispelled, investors should be aware that K+S is more of a problem child than a model student.

    The share has already gained around 50% on a one-year horizon and continues to head for the EUR 10 mark. As soon as the value reaches a sustained double-digit level, the race to catch up in the direction of historic prices can begin. However, this will not be a foregone conclusion for the share. Instead of betting on K+S or BASF, which is complex to value with different business segments, investors can get an overview more easily with Saturn Oil & Gas. The Company is profitable at current oil prices and continues to work on inorganic growth. Possibly, these are the ingredients for a sustainable yield kick, even for smaller investment sums.


    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

    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 André Will-Laudien on January 20th, 2025 | 07:15 CET

    150% stocks in focus! D-Wave, Saturn Oil + Gas, Plug Power, Nel and Rivian

    • Mining
    • Oil
    • renewableenergies
    • Technology
    • computing

    Higher – faster – further! Today at 6:00 p.m., Donald Trump will be sworn in for his second term. The stock markets have been booming for months since Trump's re-election, seemingly pricing in a major shift in American politics that is expected to primarily benefit companies and wealthy individuals. Growth stocks on the NASDAQ are soaring from high to high, although the inflation figures do not suggest lower interest rates in the short term. The Shiller P/E ratio has climbed to around 37, a level not seen since the tech bubble of 2000. Selection is becoming increasingly challenging. Here are a few 150% ideas for risk-conscious investors.

    Read

    Commented by Juliane Zielonka on January 16th, 2025 | 07:10 CET

    BASF, Globex Mining, BP – Industrial giants in transition: Billion-dollar lawsuits, the lithium boom, and the turbulence of the energy transition

    • Mining
    • Lithium
    • Commodities
    • chemicals
    • Oil
    • Energy

    The global raw materials and energy industry is undergoing a profound transformation: established oil companies like BP are struggling with profit warnings and feeling the pain of the transformation that the energy transition and changing demand are forcing upon them. The goal is to include more renewable energy sources in the portfolio. The existing shareholders are not particularly enthusiastic about this. Meanwhile, the increasing demand for electric mobility is opening up new opportunities in the raw materials sector – the Canadian company Globex Mining is scoring points here with a clever business model and promising lithium discoveries. Investors benefit from the mining company's numerous properties and extensive raw materials portfolio. In contrast, BASF has filed a lawsuit against competitors in the amount of EUR 1.4 billion at the Munich District Court. Four companies are said to have made unfair price agreements; BASF wants fair competition. Read more about the strategies of the three global players.

    Read

    Commented by Stefan Feulner on January 6th, 2025 | 07:30 CET

    Lilium, Saturn Oil + Gas, D-Wave Quantum – Big opportunities in the new stock market year

    • Mining
    • Oil
    • aerospace
    • Technology
    • computing

    Companies in the artificial intelligence sector were undoubtedly the stock market stars of the past stock market year, 2024. This trend will also likely remain in favour with investors over the next 12 months. In addition, quantum computing stocks have come to the fore in recent weeks, and some have multiplied. After a weaker year overall in 2024, oil producers will likely become interesting following the correction. The future US president, Donald Trump, strongly advocates for fossil fuels, prioritizing them far above alternatives like wind power or photovoltaics.

    Read