Close menu




April 7th, 2021 | 09:30 CEST

BYD, Kodiak Copper, Varta - Buying rate?

  • Copper
Photo credits: pixabay.com

Electromobility, energy and digitalization are continuing as a trend. Even if some prices have run hot in the meantime, the current price consolidation offers tempting entry opportunities. With the three shares presented, investors can bet on different facets of the trend. Which stock offers the most significant potential?

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: CNE100000296 , CA50012K1066 , DE000A0TGJ55

Table of contents:


    BYD CO LTD - Outlook has disappointed

    Chinese electric car and battery developer BYD Company released an outlook for its first-quarter numbers at the end of March. Net income attributable to BYD shareholders is expected to be between 200 million and 300 million yuan in Q1, representing an increase of up to 166% year-on-year. Although the numbers were above market estimates, the stock did not take off as there was a point or two in the outlook that bothered it. However, after such a brilliant share price development as in the last few months, this is also something to get over.

    Much more important are the intact general conditions, which enable further growth. BYD reports a solid economic development in the People's Republic. The new flagship model "Han" is selling well. Nevertheless, this "good" was not what analysts had expected. Currently, the Group produces 30,000 units per month, while the monthly sales figures for the Han model were only 10,000. This prompted some analysts to lower the price target. On average, the experts continue to see encouraging upside potential.

    BYD has established itself as one of the leading manufacturers of New Energy Vehicles (NEVs) worldwide with an extensive product range. Very roughly speaking, the Group is well positioned in industries related to electronics, automobiles and renewable energies. The long-term prospects are right. I am sure major shareholder Warren Buffet agrees.

    KODIAK COPPER CORP - Repeat offender

    The Canadian copper explorer Kodiak Copper is a prime example of how the "people" or "team" factor is decisive for young commodity companies, in addition to financial resources and project quality. In Kodiak's case, the "success factor" is Chris Taylor. Taylor has been internationally known since the gold discovery with Great Bear Resources. The stock shot from a few cents to more than CAD 10 within a few years. Taylor is Chairman at Kodiak. The Company's CEO is industry veteran Claudia Tornquist.

    In the wake of a sharp rise in copper prices and a vast discovery of copper at the MPD gold project, share prices rose to as high as CAD 3.20 last year. The potential of the MPD project convinced industry giant Teck Resources to enter Kodiak - an accolade. A 30,000m drill program is fully funded and was already underway by mid-March.

    With the resulting newsflow, the share price should move significantly upwards again. The share has corrected considerably from the highs in the year with a current level, at CAD 1.45, the market capitalization is around CAD 67 million. Analysts see a considerable price potential and certify the share on average an Upside of up to CAD 2.40! Even if all eyes are currently on the MPD project, one should not forget the other project Kodiak holds in its portfolio - the Mohave copper-molybdenum-silver porphyry project in Arizona. Nearby is the world-class Bagdad mine, owned by Freeport-McMoRan. There is much to suggest that Chairman Chris Taylor is proving to be a "repeat offender." Those who have not yet jumped in should do so at the favorable price level.

    VARTA AG - Standby

    Following the announcement of record figures for the past fiscal year and the entry into the production of large-format battery cells, the Varta share has become somewhat lethargic. Both company announcements could not lift the share certificates to a sustainably higher price level. Those involved for a long time have made nice profits and can wait patiently until the share leaves standby mode again.

    At present, it is not clear where a new impetus for the share is to come from. Perhaps it will be the figures for the first quarter, which the Company will publish on May 12. Shareholders' meetings are often an occasion where management reports on the past fiscal year and looks to the future. On June 18, Varta invites you to the shareholders' meeting in Ellwangen. Shareholders can look forward to a distribution (incl. special distribution) of EUR 2.50 per share.

    Meanwhile, there is also little to be heard from the analysts' guild. There are no more buy recommendations. The majority of experts rate the share as "hold" or "reduce." Given the sporty valuation with a P/E ratio of over 30 and a price-turnover ratio of over 5, the Company, which is worth a good EUR 5 billion, is no bargain. From a chart perspective, no momentum can be identified in the short term. To generate a buy signal, the share must overcome the EUR 137 mark. The support zone is roughly in the area of EUR 105.


    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 André Will-Laudien on June 20th, 2022 | 12:58 CEST

    Nel ASA, Nordex, Nevada Copper, Siemens Energy: Energy Crisis 3.0 - Copper is the solution!

    • Copper
    • Hydrogen
    • GreenTech

    The copper market is constantly on the move. Along with Shanghai and New York, the London Metal Exchange (LME) is now one of the world's largest metal trading centers. In Europe, the LME is the benchmark for copper prices and metal trading. In contrast to other exchanges, part of the trading is still done by call and floor trading by brokers in an open ring. The LME copper contract is the second-largest exchange-traded contract on the London Metal Exchange. The demand volume for copper has been at a very high level since 2018, currently even at a 25-year high. Last week, prices came under slight pressure as the specter of recession flew through the trading halls. Where are the biggest opportunities at the moment?

    Read

    Commented by Nico Popp on June 13th, 2022 | 10:40 CEST

    Stocks on the brink - here is how you can trade: thyssenkrupp, Nevada Copper, K+S

    • Copper
    • Commodities
    • fertilizer

    When companies are on the brink of collapse, it is usually already over for the stock market: As a rule, share prices react quickly to corporate distortions. Sometimes, however, these difficulties are only anticipated by the market and exaggerated in the context of the overall market. One such example is thyssenkrupp. The Company currently has its back to the wall again. We look at the situation and draw parallels with comparable companies at differing stages.

    Read

    Commented by Fabian Lorenz on June 8th, 2022 | 13:50 CEST

    Shares: Plug Power and BYD with exclamation points! Patience is needed at Nevada Copper

    • Copper
    • greenhydrogen
    • Electromobility
    • Mining

    Hydrogen or battery, which is better? This question is often asked. The answer is simple: both technologies will play an essential role in the energy and mobility revolution. While batteries seem to be gaining ground in the passenger car sector, hydrogen has numerous other potential applications, such as commercial vehicles and ships. Plug Power and BYD put exclamation points on incoming orders and vehicle sales. At the beginning of the value chain are commodity companies like Nevada Copper, which has now suffered a setback on its way to becoming a copper producer. However, the price slide could also represent an opportunity for investors.

    Read