Close menu




July 11th, 2022 | 15:33 CEST

Easing at BioNTech and BASF, and Almonty Industries with a clear signal

  • Tungsten
  • Biotechnology
Photo credits: pixabay.com

Concerns about the onset of a global recession are increasing dramatically, as shown by the economic data published last week. As a result, almost all asset classes corrected, and the fluctuation range increased enormously. In addition to the stock markets, which have been in a correction for months, crypto and precious metals prices also fell sharply. Even the oil price, which has been booming due to the Russian sanctions, was dragged down. At current levels, however, attractive, anti-cyclical entry opportunities are emerging.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , BASF SE NA O.N. | DE000BASF111 , ALMONTY INDUSTRIES INC. | CA0203981034

Table of contents:


    Almonty Industries with first tranche

    The stock market price of the Canadian exploration company Almonty Industries has fallen by around 37% year-on-year from CAD 1.30 to CAD 0.82, leaving a market value of EUR 136.00 million. At the same time, the mining company, which focuses on the mining and exploration of tungsten, is on the verge of a major breakthrough. Moreover, Almonty serves one of the most pressing issues of the moment, namely the procurement of critical raw materials from western regions.

    Based in Toronto, Canada, Almonty's primary business is mining, processing and shipping tungsten concentrate from its Los Santos mine in western Spain and its Panasqueira mine in Portugal, as well as developing its Sangdong tungsten mine in South Korea. When fully commissioned, the Sangdong mine at the Almonty Korea Tungsten deposit will be responsible for 50% of the world's tungsten supply outside China.

    With the closing of a USD 3.3 million private placement to directors and existing insiders in May, the final condition precedent to closing the USD 75.1 million KfW financing was completed. As a result, Almonty was able to announce the fully completed application for the drawdown of the first tranche of USD 12.82 million from KfW-IPEX Bank.

    Lewis Black, President and Chief Executive Officer of Almonty, commented, "The world's largest tungsten mine is now fully funded and construction is well advanced. Our pursuit of further growth in one of the most strategically important global sectors is also now in full swing. Eventually, we will be the only transparent vertical tungsten oxide producer in the West. With our flagship project under construction, we will increase our production by more than 300% with the opening of the Sangdong mine and by another 150% with our current growth plan." The market has barely recognized Almonty's potential, but that is expected to change as construction progresses.

    BioNTech shows signs of easing

    The chart of the Mainz-based biotech company BioNTech has been like something out of a technical analysis textbook in recent weeks. After peaks of USD 464.00, the share price dropped to the 78.6% Fibonacci retracement and the test of the 2020 high of USD 130.38. This striking support area has been successfully tested for the fourth time in recent weeks. Currently, the price is moving north again. In the event of a sustained break of the resistance at USD 189.07, the price gap at USD 194.61 should be closed first. Then the attack on the downward trend that has been developing since July 2021 at currently USD 203.00 should take place. The 200-day line is also located at this level. A successful and sustainable breach could result in a price target of around USD 240.00.

    BioNTech and Pfizer received a tailwind last week from the US Food and Drug Administration (FDA), which approved the two companies' application for full approval of their COVID-19 vaccine Comirnaty for use in individuals aged 12 to 15. The vaccine was previously available in the United States under an emergency approval for use in this age group. To date, more than 9 million adolescents aged 12 to 15 years have completed the primary vaccination series in the United States. The approval is based on data from a Phase 3 clinical trial involving 2,260 participants aged 12 to 15 years. Pfizer and BioNTech have also submitted these data to the European Medicines Agency (EMA) and other regulatory authorities worldwide.

    BASF - Chance to bottom out

    The shares of Badische Anilin- und Sodafabrik, or BASF for short, have been badly shaken in recent years. After peaks of EUR 98.80 at the beginning of 2018, it went down by 62% until the outbreak of the Corona pandemic in March 2020, when, as is well known, a broad-based market recovery took place, allowing the DAX stock to rise to a level of EUR 72.84. However, the Ludwigshafen-based company, which focuses on the core businesses of chemicals, plastics, performance products, crop protection and nutrition, as well as oil and gas, has since shown significant weakness in the overall market and has fallen back to the Corona low at the time. However, a double bottom could currently form here at around EUR 40, offering at least a short-term trading opportunity up to the resistance at around EUR 47.13.

    Meanwhile, the US investment bank Goldman Sachs has a "neutral" stance on BASF. The price target was raised from EUR 57 to EUR 59 by analyst Georgina Fraser in a recently updated sector report. The expert refers to increased economic uncertainties due to the Ukraine war and concerns about an impending gas shortage, the corona lockdowns in China and recession risks.


    Due to the uncertainties regarding geopolitics and fears of an impending global recession, the markets are fluctuating strongly. BASF and BioNTech could hold at important support lines and offer entry opportunities at discounted levels. At Almonty Industries, the starting signal has been fired.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Stefan Feulner on February 20th, 2024 | 08:15 CET

    Rheinmetall, Almonty Industries, Applied Materials - From high to high

    • Mining
    • RareEarths
    • Tungsten
    • armaments

    The rally in chip stocks continues unabated. After ARM opened its books last week, investors bought as if there was no tomorrow. This week's figures from top dog Nvidia promise to be exciting. Will the share continue its upward trend, or will Wednesday herald an extended correction? Defense stocks are also at the forefront of the outperformers. As orders in the sector continue to rise, investors should take a look at the producers of the raw materials needed for the systems.

    Read

    Commented by André Will-Laudien on February 20th, 2024 | 07:30 CET

    Takeover fever in the biotech sector! Will MorphoSys now be followed by Defence Therapeutics, Evotec and Bayer?

    • Biotechnology
    • Pharma
    • Innovations

    It has happened: Novartis is bidding for MorphoSys. Once again, a long-lasting and persistent rumour mill eventually confirms itself. Those who remained loyal to MorphoSys despite heavy selling last fall have now made a profit of over 300%. If we turn the analytical magnifying glass on the sector, we can see that the speculative biotech stock market segment has started to move again since the challenging year 2023. Hopes of falling interest rates in the near future, along with several other M&A hopes, have led to steady inflows into listed bio-ETFs, resulting in fund managers having recently adjusted their weightings upwards. We analyze which stocks are currently making the loudest noise.

    Read

    Commented by Juliane Zielonka on February 16th, 2024 | 07:15 CET

    Almonty Industries, thyssenkrupp, Rheinmetall: Three metal industry shares in focus

    • Mining
    • Tungsten
    • armaments
    • Steel

    The metal industry contributes globally to the development of various sectors through continuous innovation driven by mining, R&D and technological advances. Tough times lie ahead for thyssenkrupp. During the Annual General Meeting, CEO Miguel López emphasized that energy costs for steel production will account for up to half of total costs. Quo Vadis, Germany, as a business location? So, let's take a look at South Korea, another renowned steel producer. The tungsten mining company Almonty Industries is positioning itself as a pioneer here, aiming to cover 7% of the global market. Its strategy involves mining in democratically governed countries and establishing first-class trade partners such as the US and South Korea. Given the geopolitical tensions, in which 90% of tungsten production comes from China and Russia, investors should analyze Almonty more closely. Meanwhile, Rheinmetall, an arms manufacturer, is enjoying full-order books and, for the first time, is exploring a completely new technology division for its portfolio expansion.

    Read