26. March 2021 | 08:50 CET
BYD, SKRR Exploration, Adidas - These are clear signals!
The aid package of USD 1.9 trillion was passed by the Senate only last week, and now the Biden administration wants to follow up with the next stimulus package for the US economy. This time, it will be USD 3 trillion and will flow into infrastructure projects, climate change, and the education system's modernization. Once again, the Fed will be on hand to keep the printing press running hot. The threat of inflation is getting closer and closer. Prepare yourself.
time to read: 3 minutes by Stefan Feulner
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
SKRR Exploration - In the starting blocks
Fed Chairman Powell reportedly has inflation under control and plans to continue the loose monetary policy and zero interest rates until 2023. The Fed expects inflation to average 2.4% in 2021. In reality, however, price increases are likely to be much higher. At the moment, hardly anyone is talking about the historically high national debt. Rising prices with low interest rates are the breeding ground for an investment in gold. The precious metal, which has corrected from a high of around USD 2,060 last August to the current USD 1,734.0, offers a safe haven not only in times of crisis but is also one of the few alternatives for capital and inflation protection in the long term. Even if it is possible to test the lows below USD 1,700 in March, there are good long-term opportunities to invest in gold or mining stocks.
One interesting Company is the exploration Company SKRR Exploration. Last year, an experienced and well-known team from the mining industry around CEO Sherman Dahl joined forces, took over an empty share shell and stocked it with high-quality gold and silver properties. In doing so, the Canadians are focused on exploring the Trans-Hudson Corridor in the Canadian province of Saskatchewan. According to the Company, the Trans-Hudson Corridor is geologically similar to the Abitibi Gold Belt. The Abitibi Gold Belt, which straddles the Ontario-Quebec border, has historically produced approximately 200 million ounces of gold.
In total, SKRR has been able to secure 5 projects, some of which are located near producing mines. The focus is currently on the Irving/Leland project, which covers more than 23,500 hectares and is located less than 10km from the producing Seabee Gold Mine of competitor SSR Mining. On the project, SKRR has already completed a 9-hole, 1,341-meter drill program and released results from 3 holes back in February, with the remaining results to be released in the coming weeks.
Earlier this week, the successful completion of a private placement was announced. This placement raised approximately USD 2.0 million through the sale of both common shares and flow-through shares. The proceeds are to be used for further exploration expenditures. Continued positive news flow should be expected in the coming weeks. Due to the very experienced team and the promising projects, SKRR is facing a rosy future. Currently, the stock market value is around CAD 9 million. Besides Toronto, SKRR Exploration is also traded in Germany.
Adidas - Boycott from China
The trade war that has been blazing between the US and China since Donald Trump's presidency is now spreading to other continents. Europe imposed sanctions on China earlier this week for the first time in more than 3 decades. These are directed against Chinese officials who are held responsible for the persecution of the Uyghurs. Protests about working conditions have also been coming increasingly from the business community. After the fashion giant H&M drew attention to the forced labor in the Uyghur province of Xinjiang, the world's largest sporting goods manufacturer, Nike has now followed suit with criticism on social networks. The US Company is concerned about reports of forced labor in Xinjiang and will not use cotton from the region.
Now the government in Beijing is warning foreign companies to sully China's name. Newspapers and social networks are calling for a boycott of companies that oppose the use of the cotton in question. Among them is Adidas AG. It dropped more than 6% yesterday due to the news and fell below the important 200-day line in chart terms. Should this not be quickly regained, the Herzogenauracher course still has a way to go up to around EUR 240.
BYD - Bottom found?
BYD is not on the blacklist of the US government at the moment, nor is the Chinese electric car manufacturer being investigated by its government, at least not officially. Nevertheless, the Company, backed by Warren Buffett, lost over 40% of its stock market value in recent weeks due to the general market correction.
Fundamentally, however, positive news could be reported throughout. The latest news comes once again from the fast-growing electric bus business. A new charging system was presented with Alexander Dennis Limited, a British bus manufacturer. The new systems are designed to increase operational flexibility for BYD and Alexander Dennis Limited's electric buses built in the UK. In addition to AC plug-in charging, e-buses can now be specified with DC charging and pantograph solutions.
Analysts at BofA Securities reiterated their buy rating on BYD shares. The price target for BYD shares was previously the equivalent of EUR 20 and has now been raised to EUR 23.60. Goldman Sachs leans even further out of the window with a price target of just under EUR 32, corresponding to a price potential of around 70%.