Close menu




April 19th, 2022 | 12:46 CEST

BioNTech, Almonty Industries, Steinhoff - Which share will be the first to have its lid fly off?

  • Tungsten
  • Biotech
Photo credits: pixabay.com

Some stocks repeatedly experience longer sideways phases on the stock market, even though their operating performance is good. Here it is worthwhile for an investor to take a closer look in order to anticipate the right time for an entry. One can fall back on the chart technique, watch the newsflow, and analyze the fundamental data more closely. If you are convinced of a company, you can build up a position, especially in sideways markets. Today, we look at three companies where the current lid could fly off in the future.

time to read: 5 minutes | Author: Armin Schulz
ISIN:

Table of contents:


    BioNTech - Product pipeline filled

    With the speculation about a possible Corona endemic, the BioNTech share went into a dive. In the spring, the newspapers ran headlines about vaccine fatigue, and since then, the stock has been trending sideways. But is this justified? After all, the Mainz-based Company is likely to have many ongoing purchase agreements this year, which will continue to bring money into the Company's coffers. One should also not forget the bulging product pipeline of the biotech company. The Corona vaccine has opened the door to other mRNA application areas. One of these is cancer. The Company can easily advance the development of other pharmaceuticals with the profits from the vaccine. Will the Company make the next big splash?

    In addition to the cancer drugs mentioned above, the Company is also conducting research into HIV, malaria, tuberculosis and influenza. The next blockbuster will be born if a breakthrough is achieved in one of these areas. But the Company is also working on a vaccine against the Omicron variant in anticipation of next fall and is trying to arm itself against new possible Corona variants. At the same time, the Company wants to achieve full conditional approval in Europe so that it can continue to market the active ingredient in the future. At the moment, the chance of being able to sell the vaccine in China is increasing, as Shanghai is suffering from the zero-COVID strategy. Here, the Asian partner Fosun is challenged to open the door to the Middle Kingdom.

    The coronavirus will not disappear but will continue to accompany us like the flu. The potential for a successful future for the Company is there, and with a price/earnings ratio of around 4, the stock is no longer expensive either. Currently, the share is at the upper end of the sideways channel at EUR 162.85. Closing prices above EUR 170.00 would break the downward trend and initiate a test of EUR 190.00. If the breakout does not succeed, a test of the support area between EUR 111.00 and 120.00 is likely.

    Almonty Industries - Additional nano tungsten oxide processing plant?

    Almonty Industries is a tungsten producer focused on acquiring distressed operations and is commissioning the largest tungsten mine outside of China. The Sangdong mine in South Korea will provide the Company with between 7-10% of global tungsten supply in the future. Global demand will rise steadily between 3-7% in the coming years, outstripping supply and pushing prices higher. Last year alone, prices rose by more than 40%. But despite all this positive outlook, the stock has been running sideways since July last year. So the question is when the lid will fly off here.

    The Sangdong mine is said to have a potential life of 90 years, with the lowest production costs in the world and the highest tungsten oxide content. Production is expected to begin this year. Most recently, the Company came up with two other positive announcements. In order to strengthen the supply chains in South Korea, a Memorandum of Understanding was signed jointly with the South Korean government and Hannae For T, a rare metal reprocessing specialist. Two days later, a letter of intent for an additional USD 50 million in financing for a nano tungsten oxide processing plant with KfW IPEX-Bank was announced. The plant could supply the South Korean battery anode manufacturing industry.

    In addition, the Sangdong property hosts another major molybdenum deposit, which can also be economically developed. In addition, there is the producing Panasqueira mine in Portugal and two projects in Spain. One of these projects can be brought into production in the near term. The Sangdong project is fully financed, so no problems are expected from this side. As soon as the Sangdong mine starts production, the sideways phase of the Almonty share should be over. Since July, the share has traded between EUR 0.60 and EUR 0.75. If you want to invest in a rare metal like tungsten, you cannot avoid the Almonty share. Further information can be found on reasearchanalyst.com.

    Steinhoff - Discontinuation of Corona measures as an opportunity

    In 2021, Steinhoff focused on whether the Group would manage to reach a settlement with its creditors. After many legal maneuvers and delays, an agreement was reached. Many shareholders believed that the share would rise significantly after this news, but that was only the case for a short time. In the meantime, the share price has returned to roughly where it was before the settlement. The question is whether the Group will succeed in further reducing its liabilities. If it succeeds without diluting the existing shareholders, the way would be clear for higher prices.

    Since Steinhoff generates most of its sales in over-the-counter retail, the elimination of the Corona measures could increase the willingness to buy. Especially since inflation makes everything more expensive, people prefer to spend their money now rather than later when it is likely worth even less. In addition, Steinhoff's products tend to be in the low-price range, which attracts more customers with less money. In Eastern Europe, Steinhoff's subsidiary Pepco has a strong presence. With the refugees from Ukraine, millions of new customers could be added.

    But also at the US investment, Mattress Firm, things are looking much better after a cost reduction program. In the fourth quarter, the investment contributed EUR 987 million in sales to Group earnings. This increases the chances of Mattress being floated on the stock market. Such a move would certainly add value to the Group's balance sheet. The share is currently trading at EUR 0.19, between support at EUR 0.16 and resistance at EUR 0.244. However, it is important to note that the debt of around EUR 9.7 billion weighs on the share, and without a reduction, further doom threatens.


    At the moment, BioNTech looks the most promising, as profits are already bubbling and prospects are good. Second place goes to Almonty, which is developing the world's largest tungsten mine outside China, making it a big player in the critical commodity. Steinhoff is still fighting for its future and remains risky.


    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 news.financial. 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

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Juliane Zielonka on March 28th, 2024 | 08:50 CET

    Rheinmetall, Almonty Industries, Bayer AG - Arming up for defense with these stocks

    • Mining
    • Tungsten
    • armaments
    • Pharma

    The European Union is providing the defense group Rheinmetall with a total of EUR 130 million for ammunition production. The German company is one of six EU projects that are being funded in a special program to stockpile enough artillery pieces and secure supply chains. Here, Almonty Industries comes into play. Almonty specializes in the exploration, extraction and production of tungsten in two European countries, including Spain and Portugal. Tungsten is used in particular for ammunition. Almonty Industries also operates five mining projects, one of which is the largest tungsten project in South Korea. The increasing demand for the critical metal will soon cause the price of tungsten to skyrocket, as defense is becoming increasingly important for the countries and continents involved in the face of geopolitical tensions worldwide. Defense is also a topic at Bayer. The cancer drug Nubeqa supports the body's immune system in the fight against prostate cancer. Following the recent pipeline flop with Asundexian, the drug has great blockbuster potential and could bring billions of euros into the Company's coffers. Read more about why this is so important for Bayer at the moment.

    Read

    Commented by Armin Schulz on March 20th, 2024 | 07:00 CET

    RWE, Almonty Industries, Nel ASA - Emission-free energy as a booster for the portfolio?

    • Mining
    • Tungsten
    • renewableenergies
    • Hydrogen

    The search for an emission-free energy future is one of the most urgent undertakings of our time. In the face of increasing climate challenges and the growing need to reduce global carbon emissions drastically, innovative energy solutions are becoming the focus of scientific and public attention. At the heart of this energy revolution lie three key technologies: Fusion reactors, renewables and hydrogen. These three fields of technology form the cornerstones of an emission-free energy future. They promise not only a sustainable energy supply but also the transformation of our energy systems towards greater efficiency, security and climate compatibility.

    Read

    Commented by André Will-Laudien on March 12th, 2024 | 07:15 CET

    Profit-taking in Defense and AI - What else is going on? Rheinmetall, Almonty Industries, Renk and Hensoldt

    • Mining
    • RareEarths
    • Tungsten
    • AI
    • armaments
    • Defense

    Armaments stocks have been on the sunny side in the current year, 2024. Investors in this segment clearly outperformed the DAX 40 index. Due to the geopolitical situation and a redefined EU security policy, investors have rediscovered the sector. NATO member states are being called upon by the US to strictly adhere to or further increase their percentage of gross domestic product invested in defense. Donald Trump, who may return, wants to deny renegade allies the backing of the US in an emergency. Although nobody believes in this scenario, the announcement has had the effect that orders for new armaments technology have reached a new all-time high. Which shares are still in focus?

    Read