02. December 2020 | 11:18 CET
Everfuel, Fokus Mining, Bayer - you need to know that!
When greed is at its greatest and development at its peak, the milkmaids buy and it's in the BILD newspaper. At the moment, the hydrogen trend has not yet reached that point. Nevertheless, it is all the more essential to take a closer look at the facts and figures. Many things that are still celebrated today can quickly turn into the negative and speaking of turning, the gold chart has held at a critical support level. Here, after the sell-off, there are good opportunities to enter gold mines once again.
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ISIN: CA3442041024 , DE000BAY0017 , DK0061414711
Tight, tight, Everfuel
Hydrogen is the latest hot topic with forecasts for the coming years looking relatively rosy, and government support programs worth billions support this thesis. Nevertheless one should take a closer look at the possible high flyers in the depot. Caution is advised with the Danish hydrogen specialist Everfuel. The spin-off of the well-known industry leader, Nel Asa, went public last month at the equivalent of EUR 2.00. After initial difficulties, the shares of the hydrogen filling station specialist shot up to EUR 9.20 in the middle of the week.
Good friends stick together
One might think that the forecasts would justify these prices. Everfuel is working in a field that can bring significant growth; however, a quadrupling within a few days is extremely rare in regulated trading. If you look at the shareholder book of the Danes, it becomes more apparent. Besides Nel Asa with almost 17%, which is intensely interested in a rising share price, the principal shareholders are E.F.-Holding, which owns nearly 68%. The supervisor behind the EF shares is none other than Everfuel's CEO, Jacob Krogsgaard, meaning that 86% of the shares are already in safe hands. In addition, there are institutional investors such as Saga Tankers, Goldman Sachs and JP Morgan. The real free float is not even 5%. That works well as long as the share price increases. But woe betide the rubber band! Then private investors are usually the ones who suffer.
Turnaround with gold
Gold has kept the critical support zone at $1,800 and is currently pointing north again. Gold mining stocks, which corrected in the past months, some of them strongly, are also becoming interesting again. The shares of the gold exploration Company Fokus Mining offer a promising opportunity. Here, Canadians concentrate on the acquisition and exploration of significant precious metal deposits in the province of Quebec.
Management sees particular potential in the Galloway project acquired in August. The property is located in one of Canada's most productive mining regions. Many large projects, such as Bousquet and Noranda, have produced impressive drill results along the Cadillac-Larder Lake Fault. Over the past 100 years, more than 100 million ounces of gold have been produced from these mining sites.
The Golden Triangle
At the heart of the project are the three main zones, namely GP, Hendrick and Moriss, the so-called golden triangle. Although they are not directly adjacent to each other, the various gold zones, including a fourth, the Hurd Zone, could be linked together at surface and underground to form a potential corridor of approximately 1.7 kilometers.
The Canadians have already proven that Fokus Mining has ambitious plans. For example, a CAD 5 million financing deal was signed in mid-October, with the proceeds used immediately to start the planned 40,000m diamond drill program on the Galloway project. To date, six holes have been drilled on the Moriss gold mineralization area, and samples from four of these infill holes have been sent to the laboratory for analysis. They will test the continuity of the mineralization and try to understand the structure of the mineralization better. The Chairman of Fokus Minerals, Jean Rainville, was delighted with the developments and expects to continue to provide exciting results regularly through the end of the year.
Another blow to the neck for Bayer
Monsanto and no end yet. A significant settlement package agreed with US plaintiffs in June, in settlement of water allegedly contaminated with the chemical PCB, was denied by the Los Angeles Federal District Court. The judge responsible for the PCB case concerning allegedly contaminated waters now refused to agree to the compromise of the parties to the dispute. A total settlement sum of EUR 545 million was agreed with the plaintiffs. For the judge, this was, however, too little. The pharmaceutical giant has been given another deadline until the end of the year to adjust the amount upwards.
Sale of the share tranche
The pharmaceutical giant has secured the money that Bayer urgently needs for the increasingly expensive settlements relating to its seed business by selling Elanco shares. For the 54.5 million Elanco shares, USD 1.65 billion are now flowing into the war chest. Bayer has also announced that a further almost 8.2 million shares will be silvered in the next 30 days. With the completed sale of its veterinary medicine division to Elanco at the beginning of August, the Leverkusen-based Company received 72.9 million shares in addition to almost USD 5.2 billion in cash.