20. November 2020 | 11:20 CET
BioNTech, Saturn Oil & Gas, Moderna - these stocks will explode!
Now it's all happening at once with the news in the race against the Corona pandemic. According to BioNTech and its US competitor Moderna, first deliveries of the vaccine are scheduled for the end of this year and the start of 2021. The first step towards normality, even though the head of BioNTech, Ugur Sahin, does not expect a normal social life until the end of 2021 at the earliest. Then, if everything goes smoothly, badly shaken industries should experience an unprecedented renaissance, and their share prices should take off.
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ISIN: CA80412L1076 , US09075V1026 , US60770K1079
Oil in a deep sleep
The economy in partial lockdown, planes on the ground and hotels closed. The rapid economic downturn has shaken the oil industry to its core. Traces of the downturn can be seen on the chart of Brent oil. 1 barrel cost almost USD 68.00 in October 2019 and then came Corona. At the low point, the price was USD 27.00 but is currently stabilizing at just under USD 42.00. The reason for the stabilization is the imminent prospect of quickly approved vaccines.
According to the analysts, the turnaround is imminent. Citigroup's experts assume that the global oil demand will reach the pre-Corona level by the end of 2021. At Fitch Solutions, too, the situation remains relaxed. It confirmed its forecast for the price of Brent oil through 2024 at the end of October. Analysts expect Brent to cost an average of USD 44.0 per barrel in 2020, USD 51.0 per barrel in 2021, USD 53.0 per barrel in 2022, USD 55.0 per barrel in 2023 and USD 58.0 per barrel in 2024.
Cheapest oil producer in Canada
In comparison to industry giants such as Exxon Mobil, Shell, BP, who all quote production costs of more than USD 30 per barrel, the Canadian oil producer Saturn Oil & Gas pays only a measly USD 12 per barrel. These low costs made the Calgary-based Company by far the cheapest oil producer in Canada in 2019.
Falling prices as an opportunity
If the CEO of Saturn Oil & Gas John Jeffrey has his way, production costs are to be kept within this range. Since own drilling programs tend to be more complex and expensive, the management's strategy is based on inorganic growth, i.e. the acquisition of exciting competitors that have an attractive risk/reward profile due to the crisis. The ambitious goal of Saturn Oil & Gas is to become an innovation leader in the oil and gas industry.
Management trimmed for growth
In addition to the appointment of the experienced Wendy Woolsey as interim CFO, the management of Saturn Oil & Gas has achieved another coup. Jean-Pierre Colin joins the team as the senior strategy consultant. Colin is regarded in the industry as one of the great minds due to his incredibly successful career. Among other things, Colin has advised several high-ranking politicians in the Canadian federal government and the Privy Council of Canada on five acquisitions of the country's largest oil and gas companies in the 1980s by Petro-Canada. Colin also served on the boards of many successful junior commodities companies, including Pelangio Mines Inc. and Virginia Gold Inc. which sold its Eleonor project for more than $1 billion to Goldcorp Inc., now known as Newmont Corporation.
The newcomer was relatively clear about its objectives: "Saturn Oil & Gas represents a unique opportunity to build an acquisition vehicle for oil and gas that offers inorganic growth opportunities and returns for its shareholders and other key stakeholders". The current market capitalization of Saturn Oil & Gas is just under EUR 15 million. It is probably only a matter of time before the first success stories are reported on the tickers. Since the last announcement, there has been a noticeable increase in trading volume at ever-higher prices. The share price on the TSXV is currently CAD 0.12. A sustained break-out through the resistance at CAD 0.14 should result in significantly higher prices.