Close menu

May 28th, 2021 | 08:40 CEST

Bayer, Osino Resources, Xiaomi - Here is what happens now

  • Investments
Photo credits:

Pharmaceutical giant Bayer fails once again in court with settlement proceedings and is now calling for a new plan. A court ruling means a liberation blow for another company, which significantly increases the prospects for the future. Future prospects are also rosy for the precious metal gold due to fundamental conditions such as fear of inflation, loose monetary policy, and continued low interest rates. At the current level, there are excellent long-term entry opportunities with healthy profits.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: DE000BAY0017 , CA68828L1004 , KYG9830T1067

Table of contents:

    Attractive mining stocks

    Due to the strong gold price in the past year, gold producers such as Barrick Gold and Newmont achieved record results and are now sitting on a mountain of cash, which should flow into promising mining projects in the future. One potential takeover candidate is gold exploration Company Osino Resources, which is focused on developing its main Twin Hills project in central Namibia. Namibia has long been considered the most mining-friendly country on the continent due to its developed infrastructure and its politically and legally stable situation. With a share of almost 12% of the gross domestic product and more than 40% of export earnings, mining is the most important economic sector in the former German colony.

    Osino Resources has approximately 7,000 square kilometers in Namibia's prospective Damara sedimentary mineral belt along strike from the producing Navachab and Otjikoto gold mines. The main Twin Hills project is located just 20 kilometers from the largest gold deposit in southern Africa outside the Navachab Wits Basin.

    With an expenditure of 69,000 drilling meters, 125 drill holes and a total of less than USD 25 million in exploration costs, initial resource estimates have now been determined there after almost 5 years of work. Already 10 years ago, the team around Osino Resources CEO Heye Daun was able to sell Auryx, which explored the Otjikoto mine, to B2 Gold for CAD 180 million. A similar move is expected this time around at Twin Hills.

    Mid-week, an update was provided on drill results from the ongoing infill and extension drilling program, which were better than expected. At Cloud East, drill holes below the first resource pit intersected broad zones of high-grade mineralization that are improving significantly at depth. These indicate the potential for a significant resource upgrade at Clouds for the next estimate. Management plans to expand the current drill program to include additional deep drilling in the Clouds, Bulge and THC areas.

    Analysts at Sprott Equity Research issued a buy rating with a price target of CAD 2.55. The currently planned drilling program over 75,000m should bring further high-grade prospects to the surface. Osino Resources is currently trading at CAD 1.50.

    Groundbreaking news at Xiaomi

    The technology group Xiaomi was able to come up with two trend-setting announcements. First, the Chinese Company was finally removed from a blacklist imposed by the Trump administration earlier this year. Xiaomi and eight other companies were accused of having ties to China's Chinese military, security and intelligence agencies. The classification as a "communist Chinese military company" has finally been withdrawn by a US court. As a result, the restrictions on citizens and companies in the United States buying or holding shares in the Chinese smartphone manufacturer have been lifted with immediate effect.

    Profiteer of the sanctions

    The sanctions against former top dog Huawei also helped Xiaomi achieve solid growth rates in the smartphone market. According to its figures, Xiaomi shipped 49.4 million smartphones worldwide in the first quarter, giving it a market share of 14.1% and putting it in bronze place in global cell phone sales behind Samsung Electronics and Apple, which still lead by a wide margin. Overall, the Chinese want to reach the threshold of 200 million smartphones shipped this year, despite the continuing shortage of chips.

    Overall, group revenue rose 54.7% to USD 74.88 billion. Net profit even grew by 163.8% to USD 950 million. Thus, the first-quarter figures exceeded experts' estimates. Subsequently, JP Morgan raised its price target on Xiaomi from HKD 32 to HKD 35 and reiterated its "overweight" rating. Goldman Sachs also raised the target. The share is now expected to reach HKD 33 - the rating is "buy."

    The never-ending story of glyphosate

    Monsanto - no end in sight. Following a ruling by the competent district judges in San Francisco, they reject Bayer's proposal for dealing with future lawsuits as "simply unreasonable." The Leverkusen-based Company wanted to use USD 2 billion to resolve future lawsuits against the controversial weedkiller glyphosate. This time it was about Monsanto's Roundup, which can be used against weeds but could also cause possible cancer because of the glyphosate it contains. After losing in court, Bayer plans to opt out of the US settlement for potential future plaintiffs and review Roundup sales to private customers from the United States.

    "The decision makes it impossible to move forward with the proposed national resolution mechanism under the supervision of this court, which would have been the fairest and most efficient solution for all parties," Bayer said. Instead, it unveiled a five-point plan to deal with potential future glyphosate lawsuits effectively. The USD 2 billion package is just one part of the overall USD 11.6 billion settlement. The court ruling is not expected to change the provisions of the USD 2 billion. Bayer shares lost 5% to EUR 52.50 at the peak following the news. Strong support at the current level offers a long-term entry opportunity.

    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 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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by André Will-Laudien on September 26th, 2023 | 07:45 CEST

    Artificial Intelligence in Sellout! Nvidia, Defense Metals, ARM Holdings - Nothing works without rare earths!

    • Mining
    • RareEarths
    • AI
    • chips
    • Investments

    After long bull market movements, the stock market usually tends to rotate sectors, or the market enters a general consolidation. In the former case, investors can profit by reallocating their assets while exploring new investment opportunities. In the latter case, all stocks come down, and the capital market generally suffers from a change in sentiment and corrects recently exaggerated valuations. In the case of the new megatrend of Artificial Intelligence (AI), the stock market seems to sense a great need for correction. As if by magic, the blockbuster stock Nvidia rose by 250% in just 9 months. However, it has already retraced nearly 20% from its peak. Where do the opportunities lie for investors?


    Commented by André Will-Laudien on September 22nd, 2023 | 07:20 CEST

    Recalculation! These are the bare figures: TUI, Saturn Oil + Gas, Deutsche Bank - Buy prices non-stop!

    • Mining
    • Oil
    • travel
    • Investments
    • Banking

    Companies do not always have good figures in their baggage. Analysts listen very carefully to the words of those in charge. Often, it is only a minor sentence that changes entire valuations. TUI is slowly approaching pre-COVID figures. Saturn Oil & Gas must backtrack slightly because of substantial forest fires in Alberta, and Deutsche Bank aims to finalize the Postbank project in 2023. All three stocks offer good buying opportunities because the long-term prospects are quite convincing.


    Commented by Nico Popp on September 19th, 2023 | 08:25 CEST

    Interest rates at a high - What to consider now: Deutsche Bank, Vonovia, Viva Gold

    • Mining
    • Gold
    • Investments
    • RealEstate

    The European Central Bank (ECB) recently raised interest rates by 25 basis points. For many market observers, this could mean that the benchmark interest rate within the Eurozone has reached its peak. In the US, the signs also point to a pause in interest rates. Here, we explain what this means for various asset classes and how investors should navigate the high-interest rate environment. Additionally, we will explore an interest-free alternative that has its merits for various reasons.