Close menu




May 12th, 2021 | 10:20 CEST

BYD, Volkswagen, NewPeak Metals: Who benefits from electromobility?

  • Gold
Photo credits: pixabay.com

Scarcity rules in Germany. A year ago, it was noodles, canned food and toilet paper. Today, it is down to the last detail: building materials, metals and other essential materials are in short supply and correspondingly expensive. The first joineries have even had to cancel orders that were calculated months ago - wood has become too expensive. The automotive industry is also driving demand for basic materials, especially critical metals for batteries. We outline the investment stories of two carmakers and get to the bottom of the question of how raw material shortages can be countered.

time to read: 3 minutes | Author: Nico Popp
ISIN: CNE100000296 , DE0007664039 , AU0000104374

Table of contents:


    BYD: Are the Chinese losing ground?

    The Chinese carmaker BYD has a good name worldwide. Just a decade ago, the Company was a beacon of hope for a far-off future. But what was once the music of the future has become the sound of the times. In many countries, electric cars have long been part of the street scene - including Germany. It is even much more accessible to register an e-car in urban centers than a combustion engine in China. The reason for this is the sometimes high levels of air pollution. In addition, the traditional automotive industry is also focusing more and more on electric drives. The question is whether newcomers, such as BYD, will not be pushed back into their niche by the new offering. Even in China, German premium brands still enjoy a better reputation than domestic makes.

    BYD's stock has been plummeting for months. In the past three months, the value has fallen by almost 50%. Although one must counter that BYD has also risen strongly before, the price losses are increasingly causing unrest among private investors. BYD offers battery production in addition to a car division and can market these batteries to other manufacturers as well. Thanks to its large share of the value chain and favorable access to critical raw materials, investors should not write BYD off lightly. In the short term, however, the stock seems to have run out of steam. The best thing to do is to wait for a bottom to form.

    Volkswagen: Why the share is a force to be reckoned with

    The Volkswagen share has also lost ground in recent weeks - but under entirely different circumstances. While BYD has already fallen to its knees on the stock market, VW shares were still flourishing - in the past three months alone, the Wolfsburg-based Company gained close to 50%. Volkswagen has announced an e-car offensive and also wants to invest more in supply chains. The goal is to be less dependent on China and play a more vital role in e-cars in the future. From 2026, Volkswagen no longer wants to build pure combustion engines. The first e-car for under EUR 20,000 is to be launched on the market as early as 2024. It seems that the Wolfsburg Company is serious about its visions. The plans have been well received by the market. The share broke out of a long-term sideways trend in February. Given this revaluation, investors who are currently standing on the sidelines should first wait for a bottom to form. Volkswagen is a force to be reckoned with - even after the mobility turnaround.

    NewPeak Metals: Many projects, small market capitalization

    One company that is well-positioned around critical metals and especially gold is the Australian mining Company NewPeak Metals. The experienced team, which includes SolGold CEO Nick Mather, takes an interesting investment approach. The Company has early-stage projects in Argentina, New Zealand, Finland and also Sweden. It also holds shares in an Australian oil company. What sounds like a colorful potpourri at first glance makes sense at second glance. Thanks to the early stage of the projects, significant discoveries can already be made there with little funding. Thus, NewPeak Metals wants to increase the value of its properties step by step and let shareholders profit. In Argentina, the Company is advancing two gold projects. The Cachi project, in particular, has already produced promising exploration results and gold deposits visible to the naked eye. In the coming months, the Las Opeñas project in the Argentinean province of San Juan is to be explored in more detail.

    Further work in Scandinavia is to follow in the summer. There, the Swedish Bergslagen project is of particular interest, where other critical industrial metals are suspected in addition to tungsten. Above all, the location within the EU could be an advantage for NewPeak Metals, as the economic area has recognized the need to be self-sufficient in certain raw materials. A large number of projects also offers the opportunity to act flexibly regarding possible financing, dispose of properties, or bring joint venture partners on board. The share is an insider's tip given the extremely low market capitalization of around EUR 10 million. Even a few good drilling results could ensure that each project is valued at a multiple of the current market capitalization. In addition, the Company's portfolio guarantees regular newsflow. The share is highly speculative but has hardly run so far. Speculative investors can add the stock to their watchlist.


    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.


    Der Autor

    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.

    About the author



    Related comments:

    Commented by André Will-Laudien on July 4th, 2022 | 12:25 CEST

    Attention, turnaround! Lufthansa, TUI, Desert Gold, Deutsche Bank: These stocks are taking off again!

    • Gold
    • Tourism
    • Investments

    From several perspectives, the ongoing crisis is a mammoth task for asset managers and private investors. First, after the long uptrend and the absolute boom valuation of growth stocks from 2015 to 2022, no one knows when a sufficiently high discount has been reached to re-enter. Some stocks, such as Plug Power, are very forward-looking and dependent on government contracts. Here there have already been sales valuations of a factor of 200. So is a P/S ratio of currently 12 after an almost 80% share price loss cheap or still hopelessly overpriced? We do not know because the ongoing war sets new market parameters daily. The major indices will therefore continue to search for a valuation basis in a very volatile manner. We pick out a few selected opportunities.

    Read

    Commented by Stefan Feulner on June 30th, 2022 | 11:03 CEST

    Tocvan Ventures and BYD with outstanding news - TeamViewer plunges into a bottomless pit

    • Gold
    • Silver
    • Technology
    • Battery

    The current correction has hit interest-sensitive growth stocks particularly hard. The US technology exchange NASDAQ, for example, has lost around 34% of its value since the beginning of the year and its high of 16,670 points. Investors did not even stop at shares in future technologies such as electromobility. But in contrast to top dog Tesla - Musk's shares have halved in value within six months - Chinese competitor BYD is rushing from one high to the next. There is also strong news from a promising gold and silver exploration company. A gold price that experts expect to be positive in the long term could help the company to outperform.

    Read

    Commented by Stefan Feulner on June 30th, 2022 | 10:09 CEST

    Rheinmetall on the verge of a breakout, and MAS Gold and K+S with rebound opportunity

    • Defense
    • Gold
    • fertilizer

    Due to the uncertain geopolitical situation regarding the Ukraine conflict and concerns about inflation getting out of hand, the most important stock market indices are again turning downward. Germany's leading index, the DAX, is once again struggling with the psychologically important 13,000-point mark. With the exception of defense stocks, there is downward pressure across the board. Fertilizer manufacturers, which initially benefited particularly from the sanctions against Russia, are also correcting sharply and offering interesting entry opportunities for long-term investors. The precious metals markets are also running into attractive buying zones.

    Read