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November 28th, 2019 | 10:10 CET

Deutsche Rohstoff AG, K+S AG, Saturn Oil & Gas Inc. - Buy recommendation with over 100% potential

  • Resources
Photo credits: pixabay.com

Growth and prosperity are based on energy and raw materials. More than seven billion people around the globe enjoy the benefits of running water, electricity and transport connections every day. Communication based on an internet connection already enables more than four billion people today to exchange information in all parts of the world. We live in a business world with more and more market participants. More and more buyers and users as well as sellers and suppliers meet. The demands in nutrition, use and logistics are constantly increasing and as an investor there are interesting opportunities to participate in this development.

time to read: 2 minutes | Author: Mario Hose
ISIN: DE000KSAG888 , DE000A0XYG76 , CA80412L1076

Table of contents:


    5.25% yield with corporate bond

    In recent years, Deutsche Rohstoff AG has developed into a successful supplier in the energy sector. In the USA, the company operates more than 80 wells through subsidiaries in the states of Colorado, Utah and North Dakota and in the first nine months of this year produced an average of around 2,000 barrels of crude oil of a total of 4,676 barrels oil equivalent per day.

    In this period of the current fiscal year, the company generated revenues of EUR 31.2 million, EBITDA of EUR 19.2 million and a net profit of EUR 2.4 million. The Company recently announced the placement of a EUR 100 million bond with a coupon of 5.25%. With a share price of EUR 13.50, Deutsche Rohstoff AG has a market capitalization of around EUR 70 million.

    Buy recommendation with price potential of over 100%

    Saturn Oil & Gas Inc. is also focused on crude oil and has produced more than 700 barrels of crude oil in the Canadian province of Saskatchewan on an annual average to date, with around 30 wells drilled, with a trend towards 1,000 barrels by the end of the year. In the first six months of this year, the company generated over CAD 10 million in sales and a profit of approximately CAD 2.8 million. Further information on the business development is expected shortly with the figures for the first nine months.

    The analysts at GBC Research in Germany have taken a closer look at the company and rated it 'Buy' with a target price of 0.31 CAD and 0.21 EUR respectively. The company is currently worth around 30 million CAD or 19 million EUR on the stock exchange at a share price of 0.13 CAD. The complete GBC Research Report is available here: more-ir.de/d/19477.pdf

    Price losses after burst takeover

    K+S AG specialises in the salt sector and is thus an important supplier of fertilizers for agriculture. The company has an international orientation and is also dependent on the potash price in global competition. In the first nine months of this year, the company generated revenues of EUR 3.05 billion and an EBITDA of EUR 480 million. As of 30 September 2019, the company's net financial liabilities amounted to just over EUR 3 billion.

    With a share price of EUR 10.40, the stock market value of the company is around EUR 2 billion. More than four years ago, a competitor published a takeover bid for K+S of EUR 41 per share. The takeover did not take place, which from today's perspective is likely to annoy one or the other shareholder.


    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.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



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