November 4th, 2020 | 14:21 CET
BYD, Desert Gold, Plug Power - ... then the lid flies off!
The US elections are over, the uncertainties due to the pandemic remain. The capital markets are still nervous and fluctuate strongly. Some stocks are on strike, and sales programs are underway, especially for smaller Companies. The motto of this haphazard "everything out" strategy is difficult to understand. When this unrealistic approach is recognized, there is a chance of short-term, disproportionately high price gains according to the motto: "If the order is out, the lid flies off".
time to read: 2 minutes
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Author:
Stefan Feulner
ISIN:
CA25039N4084 , CNE100000296 , US72919P2020
Table of contents:
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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The gold exploration Company Desert Gold Inc. is in good company, focusing on gold production in the West African country of Mali. Mali is rich in mineral resources and the third largest gold producer in Africa. Industry leaders like Barrick Gold, Iamgold or B2Gold also maintain several gold projects there. Desert Gold currently owns two projects in West Mali, namely SMSZ and Djimbala. Particular focus is now on the 410sq km SMSZ project, which extends over approximately 38 km of the productive Senegal-Mali shear zone. Drill samples indicate gold grades of up to 3.96 grams Au per tonne rock in all four exploration zones. To date, the SMSZ project is the most extensive contiguous, non-producing land package with this highly prospective structural feature.
Big Players focus on Desert Gold
In addition to well-known investment companies such as Merk Investments and the Canadian asset manager Leede Jones Gables, which hold 9.8% and 7.7% of Desert Gold, respectively, an investor who is a kind of accolade for the Company stands out. Commodity legend Ross Beaty can call 3.6% of the Company his own. The billionaire is regarded as the "Bill Gates of the commodity market", and one of his greatest successes was the founding of Pan American Silver, in 1994, now the world's largest silver Company. On the gold market, he wants to repeat this success story with his current Company, Equinox Gold.
Selling pressure provides entry
The value more than tripled in summer from CAD 0.10 to CAD 0.35. The way back to the lottery was started again, due to the corrective gold price. Currently, the Canadians are quoted at CAD 0.135, which equals a market capitalization of almost EUR 10 million. As is reported from trader circles, a large sell order has been in the market for weeks, which is hindering the successful development of the Desert Gold price. There is certainly no lack of positive news. At the beginning of September, the Company received CAD 6.8 million due to a private placement, which was significantly oversubscribed. The proceeds from the financing will enable the Company to complete drilling of approximately 20,000 metres in the coming exploration season. It also has the flexibility to expand the program if test results are promising. Conclusion: Once the order is out, the lid flies off!
Sell for the Shooting Star
The BYD share runs and runs and runs. Even a confirmed sell recommendation cannot harm the Chinese competitor of Tesla. The price target for the "Build your Dreams" share has been raised from CNY 68.00 to CNY 102. The analysts expect the automotive industry in China to remain robust. Possible cooperation with the car giant, Toyota, is also to be evaluated positively. The main reason for the sell rating is simply that the value is too expensive in a peer group comparison. Currently, the price-earnings ratio of BYD is 74, whereas the peer company Tesla has a price-earnings ratio of 100 and is therefore actually more expensive than the Chinese. What the analysts also do not price in is a possible spin-off of the very successful battery segment. Here, significant leaps would likely be due to special effects.
In the fast lane
The share of the fuel manufacturer Plug Power reacted in good time yesterday. Precisely at the horizontal support zone at the equivalent of EUR 14, the share turned north. This means an increase of more than 11%. The 9th of November is eagerly awaited. In addition to the Q3 figures, a brilliant outlook is to be reported here. According to rumors, the Americans are planning an annual turnover of USD 1.2 billion by 2024 with an annual profit of USD 200 million.
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