Close menu




October 6th, 2021 | 11:57 CEST

China Evergrande, Triumph Gold, Gazprom: Investing in uncertain times

  • Gold
Photo credits: pixabay.com

In September, inflation in Germany climbed by 4.1% for the year. Compared with the previous month, prices remained constant. Despite this, more and more people are sounding the alarm bells. Whether in construction, the skilled trades or the auto industry, scarce goods are additionally fueling prices, and now there is also the energy shortage in China - the workbench of the world. Here is how investors can invest in uncertain times and which stocks they are better off avoiding.

time to read: 3 minutes | Author: Nico Popp
ISIN: CHINA EVERGRANDE GROUP | KYG2119W1069 , TRIUMPH GOLD CORP. | CA8968121043 , GAZPROM ADR SP./2 RL 5L 5 | US3682872078

Table of contents:


    Bill Guy, Chairman, Theta Gold Mines Limited
    "[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited

    Full interview

     

    China Evergrande: Are Swiss banks trembling?

    The share of China Evergrande is an example of the current market situation - you do not know whether things will turn out good or bad in the end. Most recently, reports have been heard that Swiss banks, in particular, could be affected by a bankruptcy and the resulting market dislocation. Swiss banks are much more heavily involved in Asia than those from the EU. The focus is on UBS, Credit Suisse and Julius Baer. These banks, he said, now serve many wealthy Asian private clients, who in turn are heavily involved in real estate in China. However, it is not clear to what extent the problems surrounding China Evergrande will ultimately have on the banks.

    What is certain, however, is that the China Evergrande share was and is a hot potato. Currently, the stock is suspended from trading. Some interest payments have not been serviced, and the situation is coming to a head - from a large-scale rescue to bankruptcy, everything is conceivable. Even if the share should be traded again in the coming days, the paper remains a plaything for gamblers. Those looking for a quick euro can just as quickly be wrong - a renewed suspension of trading followed by an existential development would be fatal for gamblers. Therefore, it is advisable to steer clear of the stock and avoid other fallen real estate stocks from China.

    Triumph Gold: Drill results in October

    When the markets are running high, and nervousness is rising, stocks from the gold sector can come to life within hours. One of these stocks could be Triumph Gold. The Company most recently completed a drill program at its Freegold Mountain project. This involved drilling 19 holes and 6,615 meters. The Company plans to announce results from this drilling before the end of October. With previous lead geologist Brian May now Triumph Gold's new president, the drilling is likely successful from management's perspective. However, the market has not yet priced in a positive development.

    The property is about 200 sq km in size and offers prospects for copper as well as gold. As neighbor and mining giant Newmont has a 12.8% stake in the Company and there are also many institutional holdings, the upcoming drill results are likely to attract attention. Anti-cyclical investors can take advantage of the current low share price level with a valuation below EUR 20 million and take a closer look at the Company. Triumph Gold is financed and has been working on its project with focus for years. Should the market turn downward in the wake of a shock event, safe havens are likely to be sought again after an initial period of weakness. Triumph Gold is a speculative stock that investors can make a note of.

    Gazprom: An (almost) sure thing

    The Gazprom share also appears to be a good choice at present. Energy is becoming scarce in China, and Europe is also facing winter. Given the increased prices for oil and gas, Gazprom can already rub its hands. Since most German households use gas for heating, the upcoming cold months should be good business for Gazprom. The Moscow-based company has already been doing well recently, with sales in the first quarter of the fiscal year climbing by more than 30%. As Gazprom expanded important pipeline capacities, sales in Eastern Europe also rose. In addition, Gazprom can also deliver to China alongside the Nord Stream 2 Baltic Sea pipeline, which ends in Germany. Gazprom is perfectly positioned and offers an exciting dividend. On the other hand, the weaker ESG profile and the political risk around Russia weigh negatively.


    While Gazprom is a solid dividend stock with minor weaknesses, China Evergrande is a no-go for investors. However, if the gas giant from Russia is too boring for you, you can think about smaller companies from the commodities sector and allocate them carefully in the portfolio according to their higher risk. With Triumph Gold, the timing could be favorable for such an approach.


    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 Stefan Feulner on May 18th, 2022 | 11:37 CEST

    Barrick Gold, Desert Gold, Newmont - Golden times

    • Gold

    The situation with gold is more than paradoxical at the moment. On the one hand, the Ukraine war is raging with the threat of spreading to other countries. On top of that, inflation rates are jumping to levels the world has not seen in more than 30 years. As the icing on the cake, the Zero-Covid lockdowns in China are hampering supply chains that are already broken. Gold should therefore explode. However, the reality is different. The precious yellow metal is currently struggling to reach the USD 1,800 per ounce mark. However, the crisis currency is likely to prevail in the long term and pave its way above new highs.

    Read

    Commented by Fabian Lorenz on May 12th, 2022 | 11:12 CEST

    BioNTech, BYD and Desert Gold: Shares for the rebound

    • Gold
    • Electromobility
    • Biotechnology

    Is the rebound coming? After the heavy price losses of recent days and weeks, the market seems ripe for a countermovement. However, this would require a little more volume in the market. But then, especially companies that have not disappointed operationally should profit. BioNTech, for example, belongs to this group. The Company has published convincing figures, and analysts see up to 50% price potential. BYD's share price should also pick up speed again. Finally, the rapid shift to electric pureplay seems to be succeeding and HSBC has raised the price target. Gold was not a safe haven in the current correction. But it is worth looking at bombed-out stocks here as well. Desert Gold Ventures is one of them. The explorer has started a new drill program and secured financing.

    Read

    Commented by Armin Schulz on May 6th, 2022 | 10:43 CEST

    Barrick Gold, Edgemont Gold, Rio Tinto - Are gold stocks taking off again?

    • Gold

    With the start of the Ukraine crisis, the gold price skyrocketed, but since March 8, we find ourselves in a consolidation. The 200-day line is currently holding, and it could go up again from here. But let's look at the reasons for the weakness in the gold price. On the one hand, there is the strong dollar, which naturally puts pressure on the gold price, and on the other hand, bond yields in the US are climbing again. After the FED announced on May 4 that it would not raise interest rates by more than 0.5 percentage points, which was originally feared, the gold price jumped again. Demand for physical gold remains high. We look at three companies in the gold sector.

    Read