28. October 2021 | 10:44 CET
Deutsche Bank, Silver Viper, Hypoport - Back on track
The flood of figures continues unabated. The technology giant Microsoft exceeded all expectations and outperformed sales by 22% compared to the same period last year due to the trend towards hybrid working. Google's parent Company Alphabet also posted a substantial increase in profits. The figures of various financial companies were also surprisingly strong. Due to the underperformance in recent years, there is clear rebound potential for many.
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ISIN: DEUTSCHE BANK AG NA O.N. | DE0005140008 , SILVER VIPER MINER. CORP. | CA8283341029 , HYPOPORT SE NA O.N. | DE0005493365
Silver Viper - Double opportunity
Gold and silver have been able to pull back somewhat from their lows. The precious metals should be trading in higher regions due to the current environment with historically high government debt, growing inflation rates and a central bank that continues to pump unlimited money into the market. The inhibitor could still be fears of significant interest rate hikes by the monetary authorities. However, if you look more closely, you will see that this is difficult to do; the risk of bankrupting the states and causing the system to falter is too high. Therefore, gold and silver should be one of the few long-term escape points from a further increase in monetary devaluation.
Besides gold and silver producers, exploration companies offer an excellent opportunity to profit disproportionately from the rising market. Silver also has the advantage that there will be enormous demand as an industrial metal for the energy transition in the coming years. Silver Viper's projects in the state of Sonora in northwestern Mexico are in good hands. The management of the Belcarra Group, which has decades of experience and directs the fortunes of Barsele Minerals and holds a total of 23% in the Company, is taking care of the development of the 6,880-hectare La Virginia gold-silver project that formerly belonged to Pan American Silver. In addition, the Canadians own the concession areas at La Virginia outright. There is also an option agreement concerning the acquisition of all of the interests in the Rubi-Esperanza claim group located within these concession areas.
Management's objective for the La Virginia project is clear. To make the bride pretty and then sell it to an interested producer. And that plan appears to be working. On the one hand, Silver Viper still has about CAD 6 million in its coffers after a private placement in the summer to undertake further drilling programs. On the other hand, things are already going fundamentally like clockwork. Significant progress has been made to understand better the ground structure along the El Rubi structure and in the adjacent La Colmena and Paredones exploration zones. In addition, potential drill targets for further exploration have been identified.
A TITAN-160 deep drill hole is scheduled to start directly over the El Rubi area in cooperation with the specialist Quantec Geoscience at the end of October. With the help of special survey methods such as DC resistivity measurement with induced polarization, and the collection of magnetotelluric data, an investigation of the structures down to a depth of 1,500m can be achieved. Management believes that the deeper mineralization is mainly in rhyolitic rocks.
Following a jump in the share price due to the announcement, the value of Silver Viper normalized in the range around CAD 0.45. Analysts at Red Cloud Securities see a price target of CAD 1.30, which would correspond to a tripling at current levels.
Deutsche Bank - Five in a row
Once upon a time, the Frankfurt-based bank competed with industry giants like Switzerland's UBS and Spain's Santander Bank for the highest profits. Those days are over, at least as far as the status quo is concerned. While the two giants were able to show quarterly profits beyond the EUR 2 billion mark, Deutsche Bank ended with a profit of EUR 194 million after minority interests and interest payments on certain bonds. However, this was more than in the previous year and significantly more than expected by the broad range of analysts.
The fact is, the financial institution is in the midst of a comprehensive transformation, and the costs for the restructuring have risen by around half a billion euros. Entire departments have been closed, parts of the investment banking operations have been sold, and further cost-cutting measures still to be implemented are planned. These include the elimination of around 18,000 jobs worldwide and the closure of around 200 Postbank branches, a subsidiary of Deutsche Bank, by 2023. Despite this, the bank was in the black for the fifth quarter in a row.
The strong man on the bridge of command, Group CEO Christian Sewing, emphasized that the Company is already around two-thirds of the way there and has consistently reached the milestones. In total, the bank has already mastered 90% of the expected burdens of the transformation. It is well on the way to having almost completely digested the restructuring costs by the end of the year. For 2022, Sewing expects an after-tax return of 8%, while the cost/income ratio should be 70%, i.e., for every euro of income, an expense of EUR 0.70 is necessary. At the end of the third quarter, this ratio was still 82%.
The figures were initially less well-received on the stock market. With a minus of around 5.50%, Deutsche Bank is listed at EUR 11.25. In the area around EUR 10.90, the sell-off should be over for the time being, as this is a prominent support line. In the long term, the bank is on the right track.
Hypoport - Sell-off after strong figures
The joy of investors over Hypoport's encouraging figures lasted only briefly. After a high of EUR 554.00 and a plus of more than 4%, the sell button was pushed back, the value came down to almost EUR 520.00 and exited trading unchanged.
Overall, the technology company for the credit, real estate and insurance industry from Lübeck showed further strong growth in the third quarter. Revenue rose by almost 18% year-on-year to around EUR 112 million. Hypoport was able to record a significant leap with a jump of 60% to EUR 11.5 million.
For the analysts at Pareto Securities, the figures are above internal expectations. The buy recommendation was repeated, and the price target remains EUR 575.00.
Despite inflation fears, the precious metals gold and silver are still in correction mode, but this should change long-term. Silver Viper is an attractive candidate for an anti-cyclical entry. Deutsche Bank and Hypoport should be watched.