Close menu

July 9th, 2021 | 12:07 CEST

BYD, Plug Power, White Metal Resources - Watch out at the platform edge!

  • Commodities
Photo credits:

At some point, the market must also consolidate! Almost daily, the S&P 500 had climbed to a new high in recent weeks. Despite individual inflation warnings from the central banks, the shares continued to climb blithely: "The trend is your friend!" - and so it is not a big deal to have to give up 2%. The time had come yesterday - investors took cover for the time being. Now it must be seen whether strong trends can withstand a temporary downturn. We look at three interesting stocks.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , PLUG POWER INC. DL-_01 | US72919P2020 , WHITE METAL RES | CA9640461062

Table of contents:

    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview


    BYD - The air is getting thinner

    BYD has had a real run in recent weeks. Continuous good news and a lot of imagination in future technologies led to a rally of over 70% in 2 months. The Chinese technology group is now increasingly focusing on the topic of electric mobility. It is expanding its product range in the automotive sector to include the area of "New Energy Vehicles (NEVs).

    The second-largest business unit of the Chinese technology group BYD is components for the mobile phone segment, particularly smartphones, followed by the renewable energy division. Since March 2021, BYD has sold more NEVs than vehicles with conventional internal combustion engines, sales of which have been declining sharply since May and have even been surpassed by plug-in hybrid versions. Among the total 51,015 vehicles delivered by BYD in June 2021, there were 41,366 NEV units and 9,649 vehicles with internal combustion engines. The electric segment continues to grow at high double-digit rates.

    So the growth is good with the Chinese; what is questionable is the valuation that has now been achieved. Should interest rates and inflation also play a role on the stock market, one could quickly start to wonder about growth stocks such as BYD because the estimated EUR 25 billion in sales are currently valued at a price-to-sales ratio of over 3. In terms of the P/E ratio, the stock is still beyond 100. Be careful at the edge of the platform and keep your fingers away for now!

    Plug Power - Clear headwinds in the truck sector

    Again a price slump at Plug Power. The share price took a significant hit in the middle of this week, as investors fear strong competition in the transport business from a new partnership between two well-known players. It is not far-fetched that Plug Power's domain could also come under pressure at some point. Plug's advantage is that it raised more than USD 1 billion through 2 capital increases.

    The newcomers in the hydrogen business are Chart Industries and Hyzon Motors. They are cooperating from now on and have announced nothing less than a small revolution in long-distance truck transport. The two companies want to work together to develop a truck powered by liquid hydrogen fuel cells and are aiming for a range of 1,000 miles, or about 1,600 kilometers. That sounds great at first and, of course, a little threatening for Plug Power, which has not yet been able to find a comparable performance from the New York-based company.

    Plug Power's transport business has so far concentrated on so-called industrial trucks, such as forklifts. According to the two competitors, liquid hydrogen instead of gaseous hydrogen in heavy-duty transport brings numerous advantages. The number of heavy-duty refueling stations needed is expected to be significantly reduced due to the extended range. Fewer refueling stations would reduce the time-consuming and costly transportation of hydrogen to refueling sites.

    New technology is not likely to be widely adopted until it is efficient and provides benefits or is appropriately promoted by the government. Joe Biden and the EU want to give some funding here. We had recently hoped for Plug Power to break out above USD 30, but now the price is turning again after rising 75% since the beginning of May. It is recommended to draw a tight STOP at the level of USD 27.50 and first wait on the sidelines to see whether the NDX takes new momentum.

    White Metal Resources - The drilling work has started

    In the future, the ECB will change its central approach to inflation targeting. The central bank will thus accept inflation rates that are at least temporarily moderately above the target value - if the rates were previously too low in its view. In other words, temporary outliers will be tolerated, but what happens when the current increase rates manifest themselves? With the ECB's current inflation discussion, gold and silver values are coming closer into focus again. Gold can rise above USD 1,800 again, and silver is taking up a waiting position at the USD 26 mark.

    The improved environment for precious metals could benefit White Metal Resources Corp. (WHM). WHM is a junior exploration company operating in Canada and southern Africa. The Company's two main properties are the flagship Tower Stock gold project in Thunder Bay, Canada, and the Okohongo copper-silver project in Namibia, Africa. White Metal has now commenced its summer drilling program on the 1,968 hectare Tower Stock gold property. The diamond drilling program is expected to take four to five weeks, with a total drill length of 3,000 meters planned.

    Promising areas include the newly discovered Ellen Zone and the untested Bench Zone areas. In total, the gold zone will cover a strike length of 1.5 kilometers. The nearby H Zone will also be investigated. As suggested by last winter's drill program results, the intent is to determine if the gold mineralization is indeed dipping 60 degrees to the southwest.

    White Metal Resources is still in calm waters. However, the current drilling comes at the right time to take advantage of future opportunities in the gold market with appropriate discoveries. In our opinion, the low market capitalization of around CAD 14 million is suitable to take a few cheap pieces off the market on a limited basis.

    The stocks we are looking at will hold their own very differently in the volatile environment. In the case of BYD and Plug Power, the stock market has already been trading for months with advance praise for the next decades. In the case of the small White Metal Resources, a good drilling result can trigger a quick rally.

    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 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

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Stefan Feulner on September 27th, 2022 | 13:47 CEST

    Barrick Gold, Tocvan Ventures, Newmont, Glencore - Long-term positioning in gold makes sense

    • Mining
    • Gold
    • Commodities
    • Investments

    The FED's recent interest rate hikes and Chairman Jerome Powell's statement sent both equity and precious metals markets into the valley of tears. By all means, the monetary guardians want to curb rampant inflation. Whether this will succeed seems at least questionable. After all, it should not be forgotten that this would put an end to the already sputtering engine of the global economy. In addition, many already highly indebted countries are falling into ever greater problems due to higher interest payments. Thus, it is time to take a long-term, anticyclical position in the precious metals sector.


    Commented by Armin Schulz on September 26th, 2022 | 12:41 CEST

    BASF, Manuka Resources, Varta - Buy when the cannons thunder!

    • Mining
    • Commodities
    • Batteries
    • chemicals

    That is Warren Buffet's motto, and the Oracle of Omaha has done very well with it over the past decades. In the biggest crises, the investor always made a bold move, while others waited rigidly in fear. This could also be observed during the last Corona Crash. Many waited for lower prices, or at least a retest of the lows, which never came. At the moment, it seems to be the case again that no one wants to buy shares, and this is precisely where the opportunity lies. No one can predict the exact low, but if you want to be there, you have to get in at some point. We look at three companies that have great potential.


    Commented by Stefan Feulner on September 26th, 2022 | 10:28 CEST

    BYD, Globex Mining, Newmont, Freeport-McMoRan - Copper with doubling potential

    • Mining
    • Copper
    • Gold
    • Commodities
    • Electromobility

    The price of copper has lost around a third since March of the current stock market year. Investors are selling the metal, which is known as an economic barometer, due to global recession fears and concerns of a drop in demand. However, due to the great importance of copper with regard to the energy turnaround, the tide is likely to turn again soon. Mining companies and commodity traders are already warning of a massive shortage of the world's most important metal. Goldman Sachs expects the price of copper to reach USD 15,000 per ton by 2025, which would mean a doubling of the current level.