July 5th, 2021 | 12:08 CEST
BYD, Kodiak Copper, Varta: E-car investments - here is how investors reduce risks
Copper is the metal of the past fifteen months. Why? Quotations stabilized early on after the Corona Crash. At first, only industry insiders took notice of this relative strength. But it was the starting signal for a copper rally, unlike anything the industrial metal has seen in a long time. From the low in 2020 to the high in 2021, copper has climbed by almost 140%. Which trends are responsible for this, and how investors can invest.
time to read: 3 minutes | Author: Nico Popp
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , KODIAK COPPER CORP. | CA50012K1066 , VARTA AG O.N. | DE000A0TGJ55
Table of contents:
Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Tag cloud
Shares cloud
BYD: Perfectly positioned, but...
Copper is primarily an industrial metal. Whenever more steel is used, the price of copper also rises. However, copper is now also a future metal: there is around three times more copper in electric cars than in classic combustion engines. Even the charging infrastructure cannot do without the metal with the distinctive color. It is no wonder, then, that the surge in shares such as those of the Chinese electric car manufacturer BYD has also boosted copper. BYD climbed by a whopping 251% in the past twelve months. Most recently, the share price has again risen like clockwork. But what is the reason for this?
More and more market participants recognize BYD's outstanding market position. In addition to its battery production, the Company also has its chip division. While giants like Volkswagen could first expand their supply chains in this direction and seek investments around promising suppliers, BYD already has everything a modern automaker needs. The vehicles are also convincing, and some can already drive over 1,000 kilometers on one charge. The downside of this promising market position is the already ambitious valuation - the market has generously distributed advance praise in recent months. As a result, the share is therefore no longer inexpensive.
Kodiak Copper: Operational success, wait and see approach
The situation is different for Kodiak Copper. The Canadian Company is best known for its MPD copper-gold project in the Canadian district of British Columbia. Over the past year, drill results are causing the stock to rise like a phoenix from the ashes. The rally took the stock from CAD 0.50 to CAD 3. The Company then raised fresh capital, and the stock stabilized above the CAD 1.50 level. Kodiak also made progress operationally: in addition to further encouraging drill results, such as a 213-meter intercept with grades of 0.65% copper, the Company purchased an adjacent property that is also believed to contain promising deposits of copper and gold. Kodiak thus has 14,716 hectares of project area. The new property is also accessible year-round via roads and connects to locally existing infrastructure.
Already several times this year, Kodiak Copper's share price twitched upwards and scratched the CAD 2 mark in Canada. Currently, the value has come back again. Investors who want to invest in high-growth companies instead of commodity multinationals can take a closer look at the value. Even with small capital investment, investors have a foot in the door and can profit from the dynamics of a speculative small-cap from the copper sector. In order to limit the risk, it is advisable to orientate oneself on the previous price trend. In 2021, the value never traded below CAD 1.38. Kodiak Copper should be solidly supported here.
Varta: Batteries "Made in Germany" as a success story?
Much better known than Kodiak Copper is the share of Varta. The battery manufacturer is primarily known for its high-performance button cells. At the end of the year, Varta also wants to take the plunge with batteries for electric cars and is planning pilot production. Since many German carmakers are looking for partners in this area and batteries "Made in Germany" are also likely to be in demand among customers, the story is highly traded on the stock market. But the euphoria is already fading - investors have realized that Varta will not become a German BYD. It is not clear whether the Company is competitive - after all, the Asians have been building e-car batteries for quite some time. Investors are well-advised to wait and see.
Better to invest at the beginning of the value chain: While BYD is already expensive and Varta's success somewhat uncertain, Kodiak Copper's stock could be a good compromise. The Company has already made a name for itself on the scene but is still moderately valued at around EUR 50 million. In addition, Kodiak is likely to benefit from the boom in electric mobility regardless of whether Varta's batteries or BYD's ultimately win the race. Especially when industries are still developing, investing at the beginning of the value chain makes sense.
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.
