April 5th, 2023 | 12:30 CEST
Crisis comeback? There is a solution! Deutsche Bank, Vonovia, Globex Mining
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"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
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.
Vonovia and Deutsche Bank: What remains of the price quake?
First Silicon Valley Bank, then Credit Suisse and finally even Deutsche Bank? At times it looked as if the market would now even set its sights on the Blue Bank. In the meantime, however, the situation has eased for the Frankfurt-based bank. After risk premiums in the interbank business rose sharply at times, they have returned to normal. The share price has also been in recovery mode for a few days. The market now agrees that the fall of Silicon Valley Bank was a one-off and that the wave from the US struck Credit Suisse, which had already been severely battered for months. But does this mean that the market risk is completely averted?
It now seems clear that the rising interest rates are by no means exclusively positive for banks. Real estate companies and all companies with increased refinancing needs are now also under special observation. The Vonovia share lost as much ground in March as Deutsche Bank. Here, the market is pricing in property value losses in addition to more expensive refinancing. Large housing packages are almost unsaleable at the moment.
From concrete gold to real substitute currencies
While shares in banks and real estate companies, such as Deutsche Bank and Vonovia, have recently lost sharply, the price of gold and Bitcoin have risen sharply. Both asset classes are considered substitute currencies and safe havens outside the established financial system. The gold market, in particular, is comparatively small, so increased investment demand can quickly ensure dynamic upward movements. This is another reason many investors see physical gold as a long-term nest egg.
Globex Mining: A piggy bank with potential
Globex Mining is set up like a piggy bank with currencies from all over the world. The Company buys commodity projects and properties in North America and, together with partners, develops them, or sells them for cash and profit-sharing. Globex Mining holds a total of more than 200 commodity projects. Among them are gold and silver, copper, lithium and other battery metals. Like any investment company, Globex Mining is traded on the stock exchange at a discount to the total of all assets: The Company weighs in at less than CAD 45 million.
The upward movement of gold has so far only slightly boosted the price of Globex Mining. However, if one takes a long-term look at the chart, it shows the beginning of a possible upward movement starting from the lows in December. Because of Globex Mining's numerous projects and the general need for commodities, the portfolio is extremely interesting: a successful exit alone can lead to funds flowing into the Company that are considerable in terms of the current market value. For investors who do not shy away from holding companies and conglomerates, Globex Mining is a company that has not yet completed the upward movement in precious metals and also has something to offer in other metals, such as lithium.
Even if the situation around stocks such as Deutsche Bank or Vonovia seems to have eased, the past weeks show that there is pressure on the kettle. Interest rates will continue to rise for the time being because of inflation. It is by no means certain that the situation will remain under control and that the central banks will master their balancing act between financial market stability and maintaining purchasing power. Nearly unnoticed shares such as Globex Mining can be a sensible addition to a portfolio in the current market phase. Even a successful exit could lead to the remaining projects - more than 200 - being reassessed by the market.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
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