03. June 2021 | 08:25 CET
BYD, Sierra Growth, JinkoSolar - The opportunity of the year!
The correction of the boom sectors from 2020 - hydrogen, electric mobility and fuel cell technology - seems to have come to an end for many stocks and currently offers extremely lucrative entry opportunities at a significantly lower level. These can now also be found in gold. The precious metal is currently trading at a 5-month high. Due to the potentially escalating inflation, the fundamental conditions for a further increase in the gold price are more than given.
time to read: 3 minutes by Stefan Feulner
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Sierra Growth - On the way to new heights
Fears of a substantial increase in inflation, which already amounted to 4.2% in the US in May, and further increases in commodity prices have driven the gold price above the USD 1,900 mark in recent days. Due to the adherence to a further loose monetary policy and a zero interest rate level by the central banks, further rising quotations of the yellow metal in the direction of the old highs of the past year at USD 2,069.70 should be pre-programmed. After the sustained overcoming of the psychologically important mark of USD 1,900, the next hurdle is USD 1,920, before the striking resistance area at USD 1,960. In addition to purchasing physical precious metals, the entry into fundamentally favorable gold and silver mining stocks offers itself. In addition to the established gold producers, one should also look at shares of gold mining explorers.
The mineral exploration Company Sierra Growth, which focuses on exploring gold, silver, copper and molybdenum projects, catches the eye. The Canadian Company has specialized geographically in two regions. In addition to projects in the Andean state of Peru, the current focus is on exploring three projects in Nevada, USA. A total of 1,805 soil geochemical samples were collected at 50m to 100m intervals on the Sierra, Giltra-Sat and Betty East properties with B&C Springs-Mildred, located on the Walker Lane trend known historically to be high-grade. Final results are expected no later than early July this year.
Positive results from the Mildred concession a few weeks ago and the evaluated historical data lead management to conclude that high-quality exploration targets can be defined during the subsequent exploration phases. Thus, the likelihood of discovering a significant mineral deposit increases. Highlights of the results to date at Mildred have shown grab samples of 26.6 g/t gold and 78.6 g/t silver and another of 667 g/t silver and 0.41 g/t gold. In addition, high grades of the base metals copper, zinc and lead and trace elements of tungsten were discovered along with anomalous gold and silver.
With a market capitalization of EUR 8 million, the young explorer Sierra Growth offers the opportunity for high share price gains if earnings continue to be positive. However, the Company, which is traded in Toronto and Frankfurt, is still in the early stages of development and, therefore, more suitable for speculative investors.
BYD - Enormous fantasy
The Chinese electric car manufacturer BYD is currently performing strongly. Since the critical support held at HKD 140 in mid-May, it has been heading steeply north. By breaking the prominent resistance zone at HKD 185.70, a trend change into the bull camp was completed yesterday. The mark represents an important support from now on. The next resistances are at HKD 196.42 and the psychological mark at HKD 200. In fundamental terms, the stock of Warren Buffett and his vehicle Berkshire Hathaway can continue to shine.
In addition to the planned IPO of the subsidiary "BYD Semiconductor" and the expansion to Europe, further positive news can also be reported in the field of electric buses. The municipal transport Company of Madrid, EMT Madrid, was able to take delivery of 30 e-buses produced by BYD. The order totaled 45 units, Spain's most significant single order to date. The BYD fleet replaces the Madrid company's aging diesel-powered buses.
JinkoSolar - Another world record
The solar Company JinkoSolar has broken its world record for the third time. With a conversion efficiency of 25.25% for a large-area, N-Type, TOPCon, monocrystalline silicon cell, the previous best of 24.9% from January was beaten once again. The Company announced that advanced technologies were also used, including N-Type wafers, an advanced diffusion system and metallization of crystalline solar cells. The progress paves the way for the mass production of N-Type TOPCon cells. From a technical perspective, JinkoSolar is on the verge of a buy signal. A break of the resistance at EUR 40.50 would result in a short-term 20% trading opportunity.