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Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


08. June 2021 | 08:25 CET

Deutsche Bank, Commerzbank, Sierra Growth: Of fast money and true values

  • Investments
Photo credits: pixabay.com

Prices are rising ever more sharply. Industrialized countries have now surpassed even the emerging markets in terms of inflation. For banks, the current market phase is rewarding: investment banking has become a mainstay and the prospect of higher interest rates also gives hope for the bread-and-butter business. We look at why investors should nevertheless not bet on bank shares and what alternatives there are.

time to read: 3 minutes by Nico Popp


 

Author

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


Deutsche Bank: The dark side of the shrinkage cure

Deutsche Bank has recently been presenting itself with renewed self-confidence - after all, profits are almost as bubbly as they were in the golden age. Above all, business in the investment division is going well. Financing, takeovers, other deals - the faster capital flows around the globe, the more intermediaries like Deutsche Bank and Co. earn. The Blaubank share has also reached new territory from a chart perspective and recently left behind its downward trend, which has been intact since 2007. However, investors should be cautious, especially with such long-term trends: The recent chart breakout is hardly visible in the long-term chart. Short-term events are also likely to be more relevant for the share's performance in the coming weeks.

However, those who take a long-term view can certainly take their cue from the chart. The signal of the chart is clear and points the way towards further price gains. However, it remains unclear how rocky the road will be and how long investors can follow this path. Like all banks, Deutsche Bank is in a quandary. While the risky investment business has long been running smoothly again, the traditional lending business lags behind. The years leading up to the major financial crisis have shown where it can lead when banks have to keep setting new records with their deals. With the bank set to lay off around a quarter of its workforce between 2016 and 2023, there is likely to be a staff shortage soon to still score with traditional banking services. Although this business is not very lucrative given the low interest rate phase, inflation rates already indicate that the framework conditions could change somewhat in a few years. Whether Deutsche Bank will be able to seize these opportunities, however, remains an open question. The Company's shrinkage and focus on investment banking harbors risks.

Commerzbank: Digitization as a cure-all

Commerzbank is also making cuts and plans to eliminate one in three jobs in Germany. Other topics on the agenda include becoming more digital and customer-focused. The numerous personnel disruptions at Commerzbank in recent months show that these measures were also controversial internally. There have already been several changes in 2021, both in management and on the Supervisory Board. In 2021 alone, the restructuring of the bank is expected to cost up to EUR 1 billion. From 53 years of age, employees will be able to take early retirement. However, whether the measures will bear fruit is also uncertain at Commerzbank. Several major banks have already proclaimed digital goals in recent years. But they will no longer be able to convince shareholders, especially since the competition from neo-banks has long since passed them by.

Sierra Growth: Hot potato with attractive risk-reward ratio

While banks have been shrinking healthily for years, secretly hoping for higher interest rates and implementing one digitalization strategy after another like lumbering tankers, investors can invest in several current trends with Sierra Growth shares without many detours. Sierra Growth focuses on the search for raw materials in Peru and the US state of Nevada. Above all, the team around CEO Sonny Janda targets gold, but silver, copper and molybdenum are also suspected on the projects of the mighty team. On the three projects in Nevada, the Company has taken rock samples some time ago and expects results to be available by early July 2021. Sierra Growth then intends to plan further work based on these results.

Sierra Growth is a speculative micro-cap with a market capitalization of about EUR 6.5 million. Unlike large financial companies in the midst of a structural change, however, the calculation at Sierra Growth is much more straightforward: Here, it is only a matter of finding raw materials. If that succeeds, Sierra Growth launches into a new stage of development. If the search fails, it should soon be looking for new properties to explore. This hop-or-top approach offers investors the opportunity for excellent upside potential with only small capital investment, as well as a narrowly defined investment horizon. In Sierra Growth's case, investors will know as early as July what the next move will be on its Walker Lane properties in Nevada. Of course, Sierra Growth shares must also be considered highly speculative. But anyone who knows how to add such stocks to a portfolio can expect a boost in returns. The rising gold price, inflationary pressure and the positive market environment for speculative stocks, including small caps, speak for Sierra Growth.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

18. June 2021 | 15:10 CET | by Carsten Mainitz

MorphoSys, Biogen, Sierra Growth - What is next?

  • Investments

Pharmaceutical stocks are a bit like that: Giants like Johnson & Johnson or Novartis have an extensive product portfolio and can cushion failures of individual products quite well. It is often a matter of life and death for smaller, specialized companies with every development. Just yesterday, this could be observed in the CureVac share after its Corona vaccine candidate only achieved an efficacy of 47% in the clinical 2b/3 phase. Within a very short time, it disintegrated the stock price. Meanwhile, biotech pioneer Biogen surprised with an unjustified share price rally, which, however, could come to an abrupt end after a new setback. The situation is different for MorphoSys. Its planned acquisition of Constellation Pharmaceuticals initially weighed heavily on the share price, but it holds exciting potential. And the Canadian mining Company Sierra Growth is operating in a completely different environment; however, it has a top opportunity to offer in the current inflationary environment and should not go unmentioned.

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18. June 2021 | 09:56 CET | by Nico Popp

Adler Modemärkte, Steinhoff, Osino Resources: Which penny stocks have substance?

  • Investments

Penny stocks often have something disreputable about them - at least in Germany. As soon as a share is quoted at less than EUR 1 in Germany, it is considered to be at risk of insolvency. The reason for this is that the minimum nominal value of German stock corporations is EUR 1. Abroad, however, things are quite different: In Australia, it is not uncommon for shares to trade even below one cent. For investors who are used to this, it is anything but disreputable. In concrete terms, it all depends on the companies themselves anyway. We profile three companies that are either penny stocks or were, not long ago.

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17. June 2021 | 13:52 CET | by Nico Popp

Daimler, Mineworx Technologies, BASF: Investing in the mobility revolution

  • Investments

The world keeps spinning - faster and faster, it feels. New technology is causing certain industries to rethink. Electromobility is one such catalyst: mining companies and companies from the chemical industry and other suppliers must prepare themselves because soon, most cars will run on batteries. There are great opportunities here - for carmakers who are on their toes and for resourceful experts in the field of recycling.

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