December 16th, 2020 | 09:55 CET
E.ON, Sartorius, Defense Metals: The scarcer the goods, the higher the price
Table of contents:
E.ON: Good conditions for rising share prices
The above example shows how fundamentally essential consumers like E.ON are for Germany as an industrial location. The Company outsourced its conventional power generators a few years ago and is now focusing on regenerative energy as well as line networks. The latter in particular are becoming increasingly important - after all, regenerative power sources have to be connected to the grids. Many wind turbines in coastal regions only make sense if the electricity subsequently also flows to the industrial sites in southern Germany.
Although E.ON's stock has lost 5.5% of its value over a one-year period, there is a growing conviction in the market that utilities also have prospects for investors. In particular, the promotion of sustainable investments could lead to suitable conditions for companies like E.ON. Added to this is the dividend yield of just under 5%. Given its low equity ratio, E.ON is not a classic value stock, but it is nevertheless well positioned.
Sartorius: More than a pandemic profiteer
Sartorius is also well positioned. The specialist for laboratory supplies and disposables in drug manufacturing is considered the Covid-19 stock apart from the vaccine manufacturers. Although the dividend is negligible after the share price gains, the payout could also go up again in the long term. After all, the business is running smoothly. For 2020, sales should climb by more than 20%. Sartorius should also continue to profit in 2021. After all, the production of drugs and vaccines is likely to continue at full speed in the coming year.
Sartorius is also performing well away from the pandemic and acquired several areas at the end of 2019. Another positive is that Sartorius is well-positioned in Europe, the USA and Asia-Pacific. After nearly 100% in a year, the share could take a breather, but when this will happen remains uncertain. Sartorius' products and services are too much in demand, so market exaggerations are likely to continue.
Defense Metals: Good underlying conditions, speculative share
Defense Metals is still a long way from a share price performance like that of Sartorius. However, the Canadian Company is also sitting on an essential commodity: rare earths. 90% of this critical raw material is mined in China and found in many products, such as consumer electronics and rechargeable batteries. Defense Metals is developing one of the few rare earth properties in North America, emphasizing the strategic importance of the metals, including to the defence industry.
Recently, Jamie Spratt, an expert in corporate finance, joined the Defense Metals team. The appointment is a sign that Defense Metals wants to get down to business as quickly as possible. The Company has an option to buy the Wicheeda rare earth project near the Canadian city of Prince George. Exploration drilling has already shown promise in recent months.
Given the growing scarcity of rare earth metals and the simultaneous increase in demand for raw materials from regions with high environmental standards, the general conditions for Defense Metals are considered good. However, as the Company is still only valued at just over EUR 7 million, the stock must be regarded as speculative.
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.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.