Do not miss out! Almonty Industries – Price correction as an opportunity, Gerresheimer and the Damocles Sword of BaFin, TKMS underestimated!

Almonty Industries: Strategic tungsten player

The Canadians are on the verge of starting tungsten production at the Sangdong mine in South Korea. This will soon make the Company the largest tungsten producer outside China. From a timing perspective, the shares have become even more attractive following the recent price correction. The stock, which is also listed on the NASDAQ, is currently trading at around CAD 9. The 2027 P/E ratio is approximately 15, which is not high given the projected dynamic earnings growth.

Tungsten is classified as a critical raw material due to its great importance across multiple industries and its limited availability. The metal is indispensable in high-tech, industrial and defense applications due to its unique properties, including hardness, heat resistance, and wear resistance. Especially in times of geopolitical tension and amid China's export restrictions, Almonty is sitting on a treasure trove.

Almonty already has a wealth of valuable expertise at its disposal. The Company has many years of experience in the construction and operation of tungsten mines, gained from projects in Portugal, among others. In addition to tungsten, the Sangdong property also contains molybdenum deposits, for which Almonty aims to define an economic resource.

Almonty is making a strategically smart move by relocating its headquarters to the US. This move will make Almonty the only major US-based tungsten producer, without moving actual production, but with clear political and economic ties. The United States and defense companies will thus gain a reliable partner for critical raw materials. The Company already has numerous long-term offtake agreements in place that guarantee minimum prices for tungsten production.

Another potential growth driver for the stock, and a new chapter in terms of expansion dynamics, could be the acquisition of projects located in the US, which the Company is reportedly considering. The combination of a unique mining project, increasing demand for critical raw materials, and a forward-looking strategic positioning makes Almonty Industries an exciting investment in a segment of growing geopolitical and economic relevance.

Gerresheimer – Successful bottoming out

The shares of the heavily shaken Gerresheimer appear to have successfully bottomed out around EUR 26. After numerous profit warnings and an investigation by the German Financial Supervisory Authority (BaFin), the negative news flow is now apparently priced into the German company's share price. At current prices of around EUR 30, the Company is valued at only EUR 1 billion, half of its revenue. Jeffries recently rated the stock with a price target of EUR 34.10.

But skepticism is a good breeding ground for rising prices. The latest news has the potential to give the stock a prolonged upward trend. The BaFin audit revealed that the Company had incorrectly recorded around EUR 3 million. This concerned a special form of revenue recognition in accounting. In the so-called "bill-and-hold" method, a sales agreement with a customer is already recorded today, even though the goods have not yet been delivered. Specifically, Gerresheimer incorrectly recorded only 1.5% of consolidated sales, which is considered undramatic. While investors had to pay EUR 70 or more for a share certificate at the beginning of the year, the current level appears attractive.

TKMS – Experts hesitate

The thyssenkrupp Group's naval shipbuilding subsidiary TKMS recently made its stock market debut. On the very first day of trading, the shares rose from a price of EUR 60 to EUR 107. Several analysts currently rate the shares as a "Hold", although they emphasize TKMS's good future prospects. The shareholder-friendly distribution policy of paying 30 to 50% of the Company's profits as dividends is also considered a plus. Considering TKMS's dominant market position and the potential boom in orders, investors should not wait too long to get involved.

Almonty Industries is one of the most exciting stocks in the commodities sector, especially in light of the recent price correction. Its tungsten project is first-class and promises substantial profits. At Gerresheimer, the Sword of Damocles wielded by BaFin is now history. The moderate valuation should lead to a gradual rise in the share price. TKMS benefits from a dominant market position, and new orders are expected to have a positive impact on the stock price soon.