March 4th, 2021 | 09:30 CET
BYD, Kodiak Copper, RWE - Quick profits: Use consolidation to enter!
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"[...] If we pursue our goals conscientiously, the market will adjust its valuation accordingly, I am sure. Often, all it takes is a trigger. [...]" Ryan McDermott, CEO, Phoenix Copper
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.
BYD CO LTD - World league: come to stay
Asian flagship BYD put in an impressive performance over the past 12 months, with its share price nearly doubling. In general, the rise of the high-tech Company, founded in 1995, has been impressive. While it used to be Asian names like Samsung or LG that stood out in the technology sector, today, one can find more and more Chinese companies in the top Group of individual industries. The Group is well-positioned in industries related to electronics, automobiles, and renewable energy.
Today, BYD is a leading manufacturer of New Energy Vehicles (NEVs) and offers a wide range of products. Yesterday, it was reported that BYD's electric vehicle partnership with ADL, a subsidiary of North American bus manufacturer NFI Group, successfully landed an attractive new order. First Bus ordered 22 e-buses from Tandem, which is solidifying itself as the leading manufacturer of electric buses in the UK.
BYD is undoubtedly an innovative growth Company and belongs in a well-diversified portfolio. The stock market value of the equivalent of EUR 74 billion and the 2021 P/E ratio is not too high compared to some other companies.
KODIAK COPPER CORP - favorable entry opportunity
The sharp rise in the red metal price last year triggered real price fireworks in Kodiak shares. From January to October 2020, the shares increased tenfold. A correction has been underway for several months now. The share price has slightly more than halved from the high in 2020, meaning the Company is currently valued at around CAD 70 million.
Kodiak's portfolio includes two exciting copper projects. Most recently, good drill results were released in February. The most advanced is the MPD copper-gold porphyry project in southern British Columbia, Canada. In the past year, the discovery of high-grade mineralization within a broad mineralization zone boosted the share price significantly.
The second site is the Mohave copper-molybdenum-silver porphyry project in Arizona. Nearby is the world-class Bagdad mine, owned by Freeport-McMoRan. An exploration program is expected to start at Mohave in the near future. The depressed price level invites investors to position themselves before the publication of the next results.
RWE AG - Analysts calculate an upside potential of 30%
RWE's core business is the production of electricity and electricity trading. In 2018, the DAX-listed Group once again raised its profile in a transaction with E.ON, in which extensive assets were swapped. RWE sold its subsidiary Innogy to its competitor from Essen and, in return, received the entire renewables business.
As one of the world's leading suppliers in the field of renewable energies, RWE intends to expand its market position further and invest massively in wind and solar energy, but also in storage technologies. In figures, the Group will invest around EUR 5 billion in Europe, North America and the Asia/Pacific region by 2022, including EUR 1 billion in Germany. As a result, the "Renewables" portfolio is to be expanded to more than 13 gigawatts. In addition, the Company has set itself an ambitious goal: climate neutrality by 2040.
At the beginning of the year, shares were quoted at EUR 38 and have corrected by almost 30% to the current price level of EUR 30. As a result, the Company is now valued at EUR 18.6 billion. A total of 27 analysts follow the stock, 20 of them coming to a "buy" assessment and an average target price of around EUR 40. This average target price corresponds to an upside potential of around 30%. On March 16, the Group will publish its figures for the past fiscal year.
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