Close menu




September 2nd, 2021 | 13:22 CEST

BYD, Kainantu Resources, DWS - Investing against the tide

  • Gold
Photo credits: pixabay.com

It is well known that a successful long-term strategy in times of high inflation is to invest in tangible assets. Whether it is stocks, gold or real estate, or a mix of these is up to the taste of the individual investor. Looking at the big picture, there is certainly nothing wrong with investing in companies that benefit from the economic development and rising purchasing power of expanding economies. Geographically, Asia is one of the most dynamic regions with large sales markets. We will show you how you can profit from these developments. Who has the best opportunities?

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , Kainantu Resources Ltd. | CA48301H1073 , DWS GROUP GMBH+CO.KGAA ON | DE000DWS1007

Table of contents:


    Gary Cope, President and CEO, Barsele Minerals
    "[...] We are convinced that we could already leverage significant potential with a drilling program of around 35,000 meters. However, to finance this, we need a decision. Fortunately, there are already interested parties who can imagine advancing Barsele together with us. [...]" Gary Cope, President and CEO, Barsele Minerals

    Full interview

     

    BYD CO LTD - In expansion mode

    The BYD share has been one of the top performers in recent months. Currently, the shares of the Chinese electric car manufacturer are scratching at a new all-time high. The latest reports make us sit up and take notice; the group is continuing its dynamic expansion mode. BYD recently announced its intention to enter the Indian market soon with an exclusive B2B vehicle.

    BYD has already been present in Indian cities with electric buses for eight years. Now a new chapter is to be opened. Its strategy in relation to the world's fifth-largest automotive market is to launch a multi-purpose electric vehicle from the fourth quarter of 2021. The group thus plans to "participate in every Indian consumer's journey to electric vehicles."

    But it's making headway elsewhere, too. Recently, BYD unveiled two new battery-electric heavy-duty trucks at the ACT Expo in Long Beach, California. These models represent the next generation of heavy-duty electric trucks with improved aerodynamics, energy efficiency and advanced driver assistance systems as standard equipment.

    KAINANTU RESOURCES LTD - Undiscovered Value

    In the long run, the precious metal gold is a good inflation hedge. Investor legends like Jim Rogers are fans of gold and silver. If we look at the last 10 years, the current gold quotation is more at the upper end of the trading range, with a price of over USD 1,800. That allows mining companies to lock in high profits. But investors should also not lose sight of companies that are not yet producing. Exploration and development companies offer attractive value enhancement leverage, even if this has to be bought with a higher risk.

    One such Company is Kainantu Resources. The Canadian-listed gold explorer has its geographic focus on the Asia-Pacific region. Kainantu Resources owns several prospective projects in Papua New Guinea. KRL South and KRL North are located in the well-known mining region, the high-grade Kainantu gold district. They have the potential to host high-grade epithermal and porphyry mineralization. In the immediate vicinity is K92 Mining's high-grade producing gold mine. In addition, the Kainantu Resources properties and the K92 project share the same geology. That is an important indication of the project's upside.

    To capitalize on the potential in the country, the Company recently acquired the May River Project, which comprises three properties totaling 1,697 sq km. Previous drilling returned gold grades of 54m at 1.83 g/t, 109m at 1.53 g/t, and 96m at 0.89 g/t. In addition, several copper anomalies were encountered. Currently, the Company has a market value of just under CAD 10 million. With project progress and a rising gold price, higher valuations are inevitable.

    DWS GROUP GMBH & CO KGAA - Price slide and now?

    Only a few weeks ago, the world was in order. The fund company presented strong half-year figures in the wake of the global stock market boom and was thinking aloud about raising its medium-term targets. Net profit increased by 40% to EUR 340 million in the first six months of the current fiscal year, exceeding analysts' estimates. Due to price gains and fund flows (especially ETFs), client assets under management grew to a record volume of EUR 859 billion. In several respects, the investment in the fund house Harvest in China had a positive impact.

    But then the massive accusations of a former employee sent the stock on a downward spiral. The insider accused the Company of massive misrepresentations regarding its ESG investments. In the meantime, even the US Securities and Exchange Commission (SEC) is investigating based on the ex-managers statements. If the allegations are confirmed, this will very likely damage the Company's image and outflows of funds. However, most analysts have not changed investment ratings or price targets after the "scandal". The share price has fallen by more than 15%, which means that the Company currently has a market capitalization of around EUR 7 billion. If the current analysts' estimates for this year and next year are halfway accurate, the stock is favorably valued. The P/E ratio for 2021 and 2022 is 10, and the experts are forecasting a dividend yield of a good 6% for both years.


    Inflation and low interest rates are the precursors to a sustained stock market boom. Different strategies are available for this. If you are betting on electromobility and Asia, BYD is the right choice. The DWS share is currently a little uncertain. The fund company is favorably valued and benefits from the stock market boom, even if there is currently a threat of damage to its image. If you want to combine the facets of shares and precious metals and also take advantage of the opportunities of a still-young company, you should take a close look at the shares of Kainantu Resources.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Carsten Mainitz on January 14th, 2022 | 12:31 CET

    Barrick Gold, Alerio Gold, First Majestic - Experts agree: 2022 will be the year of mining stocks

    • Gold

    2021 was a consistently strange year. Corona surprised with more new variants, Olaf Scholz became German Chancellor and the prices for gold and silver, despite ever-rising inflation, developed downwards towards the end year. While in the past many investors have relied on cryptocurrencies as a hedge against inflation, perhaps the recent price capers of the leading cryptocurrency, Bitcoin, could make investors rethink.

    Read

    Commented by André Will-Laudien on January 13th, 2022 | 13:45 CET

    Triumph Gold, Delivery Hero, HelloFresh - Exploding like TeamViewer!

    • Gold

    Inflation is galloping, so the central banks will have to react soon. In the matter of COVID-19, an endemic is expected after the overcoming of Omicron. That would likely bring a boom to the economies. The high volatility on the capital markets has now manifested itself, and the basis of the argument changes almost daily. For us, it is a suitable opportunity to take a look at highly volatile investment vehicles. Actually, the sails are set, but inflation can still dash the party - but that would again be a buying argument for the precious metals!

    Read

    Commented by Nico Popp on January 13th, 2022 | 10:23 CET

    JinkoSolar, Barsele Minerals, Barrick Gold: Where challenges are opportunities

    • Gold

    The road to success is sometimes rocky and characterized by imponderables. Especially on the stock market, unclear situations can be good opportunities in the long run. Sometimes the market doesn't buy a company's long-term plans, or a fundamental situation overshadows what is actually a good investment story. We present three companies where there is currently a bit of sand in the gears and explain whether opportunities can arise.

    Read