05. October 2021 | 11:40 CET
BioNTech, Varta, Sierra Grande Minerals - Is the countermovement coming?
The BioNTech share was under intense pressure in the past trading week. But even at the start of the week, the bulls could not prevail with a countermovement. There is also good news from the new German biotech star. Ripe for a rebound are also the shares of Varta and Sierra Grande. At Varta, the presentation of Apple's new Airpods could herald a share price recovery. Sierra Grande is suffering from weak precious metal prices. The Company has just published positive drilling results. Investors could soon look forward to rising prices for all three shares.
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ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , VARTA AG O.N. | DE000A0TGJ55 , Sierra Grande Minerals | CA82631L1085
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
Sierra Grande: Out of the sideways trend with good drilling results?
Sierra Grande Minerals seems to be ripe for a countermovement. The Canadian exploration company has focused on the development of gold, silver, copper and molybdenum projects. The projects are located in the USA in the state of Nevada. Just recently, the first soil sample results from the Betty East project were reported. It is located less than 20 kilometers south of Kinross Gold's Tier 1 Round Mountain mine, and the results were positive. That suggests two promising trends. The northern trend "Knolls" shows distinct deposits of gold and arsenic, and the soil samples have extended the previous trend. A new trend has even been encountered to the northeast of the project. This trend shows silver, arsenic, antimony, mercury and molybdenum and is over 1.5 km long and up to 1.0 km wide.
Sonny Janda, President and Chief Executive Officer of Sierra, commented, "The results of our soil geochemical survey program at Betty East are very encouraging and confirm the existence of gold-bearing structures. Most intriguing, however, is the broad, apparently east and northeast trending soil geochemical anomaly containing multiple elements. We look forward to further exploring and evaluating this area in the coming months." In the coming months, Sierra Grande Minerals will focus on the new discovery to the northeast to evaluate the full extent better. An airborne magnetometer survey on the property is also being considered. Further details of the analysis should drive the share price, and perhaps sooner or later, big neighbor Kinross will grab it too.
BioNTech: Countermovement after the crash?
BioNTech shareholders needed strong nerves last week. The share fell to EUR 200. In August, it briefly traded above EUR 400. The reason for the recent price slide was the news that a Merck subsidiary will apply for emergency approval for a COVID-19 drug. It was foreseeable that sooner or later, an effective drug would come onto the market. But it will not replace vaccines. BioNTech should still be earning very well in 2022. At the same time, the biotech company is making progress in developing its cancer immunotherapies. The BNT122 vaccine for colorectal cancer, also based on mRNA technology, is now in phase 2 clinical trials, with around 200 patients in the US, Germany, Spain and Belgium expected to take part. It is already the second product from the cancer pipeline. Its efficacy against black skin cancer is also currently being investigated in a phase 2 trial. On Monday, the share at least caught itself and trended slightly positive. The price of EUR 400 was certainly exaggerated, but the share seems just as attractive at EUR 200.
Varta: Tailwind from new Apple Airpods?
In mid-August, Varta had published half-year figures. Since then, the battery specialist's stock has been on a downward trend, giving back virtually all of the year's gains. Investors were disappointed by the Company's outlook. Varta itself will not publish figures again until November 11, when it may raise its full-year forecast. Until then, Varta shares may get a tailwind from Apple. The tech company is a major customer of Varta. That is because Varta's microbatteries are in the Californians' Airpods. Now speculation is growing that Apple will introduce the third generation of its cordless headphones before the end of October. The last update was in April 2019, so the time seems ripe for a new generation. Especially since the Christmas shopping season is just around the corner. If Varta batteries are back on board, this should boost Varta shares and put the focus back on the Company's strong core business. However, analysts are traditionally cautious on Varta. Berenberg recently left its rating at "Hold" with a price target of EUR 125.
The stock market is currently very volatile. However, there are indications of a countermovement in all three shares. BioNTech continues to earn well and is making progress with its vaccine pipeline. Sierra Grande Minerals has discovered previously unknown deposits, and Varta should benefit from Apple's new Airpods.