14. December 2020 | 12:37 CET
BYD, Almonty Industries, Alexion - Take advantage of the correction!
It is here, the second hard lockdown due to the global Corona pandemic. After the broad market in the past few days announced a correction, there are again numerous opportunities to get more favorable stocks of great interest. Even sectors that have risen disproportionately, such as electromobility, hydrogen and e-commerce, are heading south—a new opportunity to bet on the winners of the future.
time to read: 3 minutes by Stefan Feulner
Clear target in sight
Unimpressed by the news of the past few days, the Canadian Company Almonty Industries is pursuing its goal of building the world's largest tungsten mine in Sangdong, South Korea. This mine would then produce 5% of the world's tungsten production and cover 30% of production outside China. The final contract with KfW-IPEX Bank was signed last week. The project financing is worth USD 75.1 million. A buyer for the tungsten concentrates, which are to be produced in Sangdong from 2022, has already been found. It is the Austrian Plansee Group, which is also providing EUR 30 million in bank guarantees to mitigate potential cost overruns.
The fact that a long, trusting partnership is emerging here is reflected in the shareholder book. The Plansee Group takes over shares from the Company's CEO, making it the main shareholder. Deutsche Rohstoff AG remains on board with a current stake of 12.8%. Analyst Simon Scholes of First Equity Research celebrates this deal with a "buy" rating. His target price is CAD 1.45. Currently, Almonty's share price is at CAD 0.66, a potential doubling opportunity!
Vaccine candidate with record acquisition
AstraZeneca is still well in the global race for approval of a vaccine against the Coronavirus. Although the British Company has been left behind in the timetable by its competitors Moderna and the joint venture between BioNtech and Pfizer, a marketing authorization application could still be submitted within the next six weeks if the results of the trials are positive. Now the British pharmaceutical giant, formed in 1999 from the merger of Sweden's Astra with Britain's Zeneca, is looking to expand its portfolio.
Record acquisition to expand
The purchase of the US biotech Company Alexion is worth a whopping USD 39.0 billion to the British Company. In the process, AstraZeneca intends to pay a total of USD 175 per Alexion share in cash as well as in its own securities. With the acquisition, AstraZeneca aims to expand its immunology and rare diseases business. In 2019, Alexion generated sales of just under USD 5.0 billion in this division. The lion's share of this is accounted for by the drug Soliris. This drug is used to treat paroxysmal nocturnal hemoglobinuria, a rare, life-threatening disease that leads to the destruction of red blood cells. Currently, the British themselves have a stock market value of EUR 115.99 billion. The expansion of the product range makes sense, and the acquisition target promises great potential. Moreover, the British are still lagging in vaccine development. However, the demand will be so great that enormous sales can still be generated upon approval.
Strong figures confirm the trend
The electric car manufacturer BYD continues to deliver strong delivery figures. In November 2020, for example, a total of 53,943 vehicles were delivered to customers, more than 6,200 more than in the previous month. The main sales driver here was, of course, the New Energy Vehicle segment, which consists primarily of hybrid and all-electric vehicles. With 26,690 units, the Chinese recorded a healthy increase of well over 200% compared with the same period last year, when only 11,220 units were sold. By contrast, sales of cars with internal combustion engines fell by 9.4%.
Share too expensive
Arguing that the stock was overvalued, analysts at asset manager UBS lowered the stock from "neutral" to "sell." The "Build your dreams" share has received some advance praise in recent months, which is reflected in the significantly increased share price. Currently, the share price, which reached its high at EUR 22.39, is going through a first correction phase. At EUR 18.20, there is a broad support zone that has already been successfully defended once. The 50-day line is now also located in this area. If this zone holds, BYD could soon head north again.