20. October 2020 | 11:51 CET
BYD, Silver Viper, Plug Power - When will the doubling happen?
Since the Corona low at the end of March, the stock markets have started a brilliant race to catch up. Many indices have reached new highs, with some about to break out. The technology-heavy stocks, such as the Nasdaq Composite, in particular, ran to new all-time highs. Among the individual stocks, the highest gains were seen in Companies from the hydrogen and fuel cell sectors, but also in gold and silver. The trend in these boom sectors is still going strong, and many securities still have a significantly higher price potential.
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ISIN: CA8283341029 , CNE100000296 , US72919P2020
Forecasts significantly increased
Chinese electric car maker BYD is bursting with power, as the recently published Q3 figures show. Despite the Corona dent, the "automotive segment" is showing a strong recovery. The new energy vehicles (NEVs) grew disproportionately in sales volume. In addition to the new model, Han, business with the modified Tang model also developed positively. The Chinese carmaker is expecting net earnings of up to CNY 3.6 billion for the third quarter, compared with CNY 1.57 billion in the previous year, an increase of around 128%. Earnings per share are now expected to be between CNY 1.18 and 1.25 (previous year: CNY 0.51).
The new Tesla?
Founded in 1995, the Company aims to knock the top dog Tesla from his throne. It seems that the scissors could be closed further. In addition to the record number of 40,000 new orders for the future flagship Han in recent months, the Company's developers are shining with further milestones. For example, the specially developed lithium iron phosphate battery called "Blade" has an incredible range of 606 km.
Also, it is only half the size of the original lithium-ion batteries and is therefore supposed to be more cost-effective. A clear attack on the pioneering role of Musk. With a Tesla, you can only get 468 km range with one at the moment. It is interesting to look at the market capitalization of the two giants. While Tesla has a market capitalization of just under EUR 350 billion, the "Build your dream" Company has a market capitalization of only EUR 39 billion.
Fuel cell shares had to correct somewhat after the enormous price jumps of previous weeks. However, the uncertainties in the market as a whole played a greater role. The US manufacturer Plug Power is very broadly positioned compared to its competitors and has further expanded its portfolio through acquisitions in the past 12 months. In addition to the automotive industry, Plug Power has another foot in the door in the field of aircraft technology. In terms of charts, a reset is quite possible, up to about 14 Euros. The long-term bullish trend remains unaffected by this.
Potential after correction
The silver price has also had to give way in recent months. However, the upward trend that has been in evidence since 2018 is also intact here. Fundamentally, the uncertainties surrounding the US election, the high and growing national debt, and the unchecked money printing by the central banks should give the price of gold and silver further tailwind.
Of course, individual stocks have also fallen in recent months. The Canadian junior mineral exploration Company, Silver Viper Minerals Corp., whose main focus is on precious metals exploration in the state of Sonora in northwestern Mexico, was unable to maintain its all-time high of CAD 0.85 and is currently back at around CAD 0.51.
Financing brings new leeway
Due to the strong performance of the Silver Viper share price in the past 12 months, the management was able to announce another milestone. With successful financing round from 2019, the Company received further inflow of about CAD 2.8 million. The financing terms included an early conversion right of the warrants, as soon as the share price trades at an average of at least CAD 0.70 for ten consecutive days. On September 15, 2020, this condition was met. The holders of the warrants had until October 8, 2020, to subscribe to the new shares.
Steve Cope, CEO of Silver Viper stated earlier: "I am very proud of the progress our team has made over the last year. The financing last September (in 2019) was done at 25 cents and we recently hit an all-time high of 85 cents. The majority of the La Virginia project has never seen any modern exploration and we will continue to not only expand on our discoveries at El Rubi but also continue to test the other drill-ready anomalies that we have identified through our surface mapping and sampling programs. With a number of catalysts expected before the end of the year, we fully expect to continue to add value to the company. I would like to thank all of our shareholders for their continued support."