01. December 2020 | 09:54 CET
Desert Gold, BioNTech, Vodafone - Healthier, Cleaner, Gold!
Asian stocks have recently faltered near their record highs, but the Nikkei, in particular, has experienced a grand rally of 15% in the last 4 weeks. Yesterday 30.11. is a popular settlement day for fund managers around the globe because from this date on you only have 1 month to clean the portfolio from unwanted components. In simple terms, stocks which ran poorly all year are likely to be sold and stocks that everyone's talking about and have performed well so far, tend to be topped up again. Among asset management experts, these measures are called "window dressing", i.e., perfecting the design of the viewing rooms in the form of a portfolio listing.
On the market as a whole, investors seem to be developing the view that the economic recovery will gain momentum next year, and this is driving some to liquidate their gold holdings - intended as a security investment - rather than to sell them. On the technical front, support for gold remains intact at around USD 1,750 to USD 1,770 an ounce. Silver continues to see massive interest near the psychological level of USD 22-23, the Technical Analysis tells us. Whether we can take this as a given at the end of the year remains to be seen; the pressure on precious metals prices is currently high.
time to read: 4 minutes by André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Desert Gold - The Africa fantasy remains
Although the Desert Gold stock has been quiet in recent weeks, preparations for a new exploration program are in full swing. The funds from the last transaction are still available with traded prices of well over CAD 0.30. A capital increase at CAD 0.28 could be placed, and CAD 6.5 million could be raised.
The company is surrounded by big names like B2Gold and Barrick Gold. West Africa is the place to be for exploration and production. The huge upside potential for discoveries makes Mali very attractive for junior exploration companies like Desert Gold. The team already explored gold in the past and knows where to drill in the upcoming program. With the money in the bank, the company is very flexible and can focus on increasing the gold reserves.
At the current price of CAD 0.14, the most recently depressed value has a capitalization of only CAD 18.5 million. Chart Technically, one is here broadly supported, but at present the tax loss realizations customary in Canada, dominate. In our view, there is, therefore, a clear chance of doubling in the next gold rebound.
BioNTech - December is the time
The UK is on the verge of becoming the first country to approve the Covid-19 vaccine from Pfizer Inc. and BioNTech SE, ahead of a long line of countries waiting for protection against the coronavirus. The release is possible as early as the beginning of December, said a person familiar with the situation who asked not to be revealed, as the process is still highly confidential. Earlier last week, the Health Commission MHRA announced that it now has the data it needs to release the vaccine. Nevertheless, the studies will continue to gradually increase their validity, thus documenting the thoroughness of further review.
The vaccine was already 95% effective in a clinical study involving almost 44,000 people, and so far, there have been no significant safety problems. The first vaccines to a broader audience are likely to be administered as of December 7, the Financial Times reported.
The UK has ordered enough doses of the Pfizer BioNTech dual-dose vaccine to immunize 20 million people, although this amount will almost certainly not be available immediately. The two Companies responsible have also signed contracts to supply hundreds of millions of vaccines to Europe, the US, Japan and other countries.
Pfizer-BioNTech's vaccine has moved to the top of the field after delays in testing a vaccine from AstraZeneca Plc and the University of Oxford. Another vaccine from Moderna Inc. has also proven its high efficacy in trials.
The BioNTech share was recently able to advance several times into the region of USD 120. With a capitalization of USD 25 billion for a product, one wonders whether all fantasy is not already priced in - but after all, the high volatility of the share not only offers investors fun but is also suitable for every gambler. BioNTech has already increased sixfold in 2020.
Vodafone - Clean radio here
Vodafone PLC announced a voluntary commitment to reduce global carbon emissions to zero by 2040. By 2030, Vodafone will already have eliminated all emissions from its own activities and from the energy mix it uses, after which the issues of waste avoidance and business travel will be on the agenda. Such green statements are a rarity from the telecommunications industry. After all, what destroys the environmental image more than the radio masts placed arbitrarily in the landscape, which will soon be chasing lush 5G frequencies into the ether. A fancy future design of these masts has not been sighted yet.
The telecommunications giant said these targets have been endorsed by the Science-Based Targets initiative, supported by the United Nations and WWF, among others, and are consistent with the reductions needed to keep global warming at 1.5°C, the most ambitious goal of the Paris Accord. As early as July 2021, Vodafone's European network will be powered 100% by renewable energy sources, creating a green gigabit network for customers in the 11 target markets, which will grow sustainably and use electricity sources exclusively from wind, solar or hydropower.
The underlying strategy is obvious: ESG pressure is very high among Vodafone's customers and not least, among the telecommunications giants themselves, to switch their traditional business model to a sustainable one. The measure that immediately comes to mind is, of course, electricity consumption. Thanks to the sustainable changes in Vodafone's strategy, its customers can already take on all the upfront costs of using the service provider and then slide up the ESG scale as well.
So the Board of Management naturally, proudly and politically correct announces: "Vodafone will also enable our customers to reduce their ecological footprint by using our services, including the Internet of Things". Bravo - we investors are pleased to hear that! Now Vodafone, too, is gaining access to the modern ESG portfolios of sustainably oriented major investors.
The market capitalization of Vodafone PLC is currently GBP 33.5 billion, but high debt remains a problem. On the charts, the share price has already sent out very positive signals with an increase of 19% since the end of October.