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Lewis Black
CEO | Almonty Industries
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Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

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Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


18. October 2021 | 10:44 CET

BioNTech, Cardiol Therapeutics, Bayer: Where triple-digit returns beckon

  • Biotechnology
Photo credits: pixabay.com

The pandemic is drawing to a close. Vaccination rates are high, and a new wave is - fortunately - not picking up speed. But in this environment, what is happening to many highly acclaimed pandemic stocks? Are vaccine manufacturers still interesting at the moment? We look at how the industry is faring and where opportunities can still be found.

time to read: 3 minutes by Nico Popp
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , CARDIOL THERAPEUTICS | CA14161Y2006 , BAYER AG NA O.N. | DE000BAY0017


 

Author

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


BioNTech: Why investors should tick off 2020

The shares of vaccine pioneer BioNTech have had a turbulent few months. In the summer, the share price almost doubled within a few weeks but then gradually fell. On a three-month horizon, the stock is nevertheless up around 20%. However, in terms of price performance, the whole thing looks like a zero-sum game - the price fluctuations were too significant. Such volatility always harbors the risk that market participants will be caught on the wrong foot. Those who entered the market at EUR 300 thought they were successful bargain hunters only for a short time - after all, the share price fell by another third shortly afterward. How should investors deal with BioNTech now?

Given the continued need for booster vaccinations and the associated cash flows, BioNTech should continue to do good business with the pandemic in the future. However, the market is already looking further ahead. The Company would do well to bring more innovative products based on mRNA technology to market soon. But BioNTech will not be able to move as quickly as it did in the pandemic year 2020. At that time, the support of the US government, among other things, ensured that vaccine manufacturers were able to research and develop in the dark without regard to the costs. BioNTech now lacks this tailwind. While the Company continues to benefit from sales of its Corona vaccine, which is an advantage over other biotech stocks, investors should be prepared that new developments in the biotech sector are long and complex. Disappointment is, therefore, not out of the question for BioNTech. That is a risk given the stock's drop rate.

Cardiol Therapeutics: Is history repeating itself?

While BioNTech is valued at around EUR 50 billion, Cardiol Therapeutics is valued at only around EUR 145 million. The Company is researching active ingredients based on cannabidiol for the therapy of inflammatory heart diseases. Positive correlations between the active ingredient and the alleviation of inflammation in the heart have been scientifically proven, and Cardiol Therapeutics is in clinical trials in this regard.

Cardiol expanded its studies to include Covid-19 patients, testing its compounds under new conditions in the wake of the pandemic. So for the biotech company's research progress, the pandemic was a kind of catalyst. Cardiol Therapeutics has been listed on the US tech exchange Nasdaq for several months now and is thus in the focus of international investors. CEO David Elsley presented at the International Investment Forum (IIF) last week, again emphasizing the attention his Company has received due to its Nasdaq listing. The share of Cardiol Therapeutics has been volatile over the past few weeks but continues to show strong upward momentum. Historical examples, such as GW Pharma, show that the Nasdaq offers excellent potential for companies like Cardiol. Within a very short listing time on Nasdaq, GW Pharma's market capitalization rose from about USD 100 million to more than USD 1 billion. It was acquired by Jazz Pharmaceuticals a few months ago for more than USD 7 billion.

Bayer is doing well

While stocks like Cardiol Therapeutics have great momentum, making them more for speculative investors, Bayer scores on other merits: The share is valued low, and Bayer has some hot irons in the fire with its pharmaceuticals and seeds businesses. The Rhinelanders see great potential in cell and genetic engineering and have intensified research in this area. Bayer has also been successful in developing seeds. A new type of corn that requires little water and is ideally suited to climate change is also paying dividends for Bayer's image as a possible inflation beneficiary. At around 3.5%, the dividend yield is respectable. However, Bayer will not be a high-flyer any time soon. But the stock is certainly solid.


While it is not clear where a fair valuation lies for BioNTech, given the many laudations in recent months, Bayer should continue to score with steady development in the coming months and years. Cardiol Therapeutics, on the other hand, offers the chance for a complete revaluation. If the clinical trials are successful and Cardiol's active ingredient can establish itself, the current valuations should be a thing of the past. However, investors should keep in mind that the flip side of every opportunity is risk.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

25. November 2021 | 12:44 CET | by Fabian Lorenz

BioNTech, Valneva, Cardiol Therapeutics: Vaccination boosters also share boosters?

  • Biotechnology

The Corona pandemic has been with us all for a good 18 months now, and there is no end in sight. While the industrialized countries are boosting their vaccines, large parts of the world's population have still not been vaccinated for the first time. That means that shares of manufacturers of vaccines or drugs against COVID-19 will continue to be the focus of investors. Driven by the booster and mandatory vaccination discussions, BioNTech has left the correction behind, and the share is marching towards EUR 300. Drug developer Cardiol Therapeutics should now pick up again after the successful capital increase. In any event, analysts see price potential. Vaccine developer Valneva benefits from the EU order but has not yet recovered from Tuesday's "flash crash".

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24. November 2021 | 12:41 CET | by Nico Popp

BioNTech, Defence Therapeutics, Novavax: Another step towards vaccination against cancer

  • Biotechnology

In Portugal and Spain, vaccination rates are higher than in Germany. There are various discussions about the reasons for this. One argument is the fact that infant mortality was high in both countries for a long time. Those who still vividly remember the stories of dead or lifelong damaged infants are less likely to think twice when the doctor calls for vaccination. The recent experience with BioNTech and other vaccines could also give a new boost to the willingness to vaccinate. It is, therefore, quite fitting that vaccines against many different diseases are now emerging on the market.

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19. November 2021 | 11:21 CET | by Armin Schulz

Valneva, Cardiol Therapeutics, Novavax - Is the Corona emergency brake coming?

  • Biotechnology

Today, the Robert Koch Institute reported 65,371 new infections, a new sad record. In Berlin, politicians are currently discussing how to proceed. Abolishing the free tests to increase the pressure on the unvaccinated has proven wrong in retrospect. The fact that booster vaccinations might be necessary was also not considered when the vaccination centers were closed. Now the first state is discussing the next lockdown. If the numbers continue to rise, the emergency brake will be pulled in Berlin sooner or later. In parts of Austria, it is already a reality. We take a look at three possible winners of a lockdown.

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