April 1st, 2021 | 06:17 CEST
Blackrock Silver, Deutsche Bank, Heidelberger Druck - Turnaround stocks in the Easter basket!
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Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Blackrock Silver Corp - New drill results in Northern Nevada
Blackrock Silver Corp. (formerly Blackrock Gold) has released gold and silver drill intercepts from its 2020 winter drill program. These are from the 100%-controlled Silver Cloud project, located along the Northern Nevada Rift. In the Northwest Canyon target area, drill hole SBR20-007 encountered a significant amount of gold mineralization, suggesting that the east-west zone continues further than thought but that the high-grade portion may be offset along a fault from north-northwest to north-south.
Drill holes near the northeast veins failed to reach the desired lithologies. Still, significant gold mineralization was encountered in the adjacent Quiver target area, which now requires additional drilling and assaying. This drill program was designed to test several target areas on the 45 sq km project. The targets consisted mainly of testing surface outcrops of banded chalcedony veins. These veins have never been drill tested before.
In the Quiver target area, the Company is now confident of the geology present, as high-grade gold was discovered along the eastern margin of the so-called Silver Cloud trench. The recent discovery reported by Hecla Mining at its Green Racer project highlights the potential for further nearby discoveries for which the trench in northern Nevada is historically known. Blackrock operates nearby here. Blackrock Silver shares recently consolidated to CAD 0.70 but had risen from a standing start to over CAD 1.00 in early January. That could well repeat itself now!
Deutsche Bank - Is the turnaround coming now?
Deutsche Bank has been the problem child of the German financial sector for years. Although it was able to pull itself out of the financial crisis by its bootstraps, it has not demonstrated any significant progress in rebuilding over the past 12 years. The cumulative losses reached a level of more than EUR 10 billion. The business model was questioned umpteen times, but in the end, it hardly changed. The fintech industry is probably ruining the venerable bank's business because they have consistently taken the path of digitization.
At Deutsche Bank, the structures remain encrusted, hardly any money is earned in the private client area, and investment banking is repeatedly criticized. In connection with loans to the outgoing US President Donald Trump, the public also learns only fragments. It is rumored that Deutsche Bank has a problem with Donald Trump because he owes more than USD 300 million. Trump, however, has to wade through many indictments after his immunity was lifted, and in the next few years, his loans, for which he is personally liable, will come to maturity at some point.
Deutsche Bank's stock is also allegedly exposed to some risks with prominent US hedge funds. According to industry insiders, it is said to have acted as prime broker for Archegos, but the losses incurred in the process are significantly smaller than other banks. The hedge fund was unable to service margin calls, so banks are in the process of liquidating their positions.
Nevertheless - Deutsche Bank is a stand-up guy. It can cope with crises and the share price, which has risen above EUR 10, indicating that the worst times are probably behind us. That is why you should look at the DBK share again because the all-time high from 2007 is still more than 800% away.
Heidelberger Druck - Growth with Wallboxes?
There has been no good news from Heidelberger Druckmaschinen (HD) in recent years. The Company has slid from one crisis to the next as a result of bad management decisions. With the outbreak of the Corona pandemic last spring, the long-established group's situation deteriorated even further, which is why some experts no longer believed in a successful turnaround for the printing press manufacturer.
However, with the most recently published quarterly figures, the Company surprised many investors positively. Although sales in the period from October to December 2020 fell by 15% compared to the same period last year, from EUR 567 million to EUR 484 million, net profit increased at the same time from EUR 3 million to EUR 12 million, at least a partial success in our opinion. But is this already the turnaround?
The main driver behind the return to profitability was noticeable cost-cutting measures, which have already reduced over 700 jobs since the beginning of the current financial year. The massive realignment of the entire printing industry has an impact, and new printing presses are now less needed because of digitization. Not in publishing, but in the packaging sector, however, the headline figures are significantly higher. Here, products are expected to become particularly prominent thanks to their intelligent wrapping - a clear growth market.
The new business with e-wall boxes used for charging electric cars is also up-and-coming. After the Heidelberg-based Company was already able to deliver 35,000 wallbox systems, the management defines a new growth area for which annual growth of more than 20% is expected. Consequently, the Company now wants to roughly double its production capacity by April. Perhaps this is a new last-minute foothold that will help the share to new heights again. After doubling from the bottom, the stock should be looked at again at just under EUR 1.10; there is probably more in it.
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