Exciting Stock Stories and Plenty of Upside Potential: Lahontan Gold, United Internet and Generac in Focus

Lahontan Gold: Good News Leaves Investors Wanting More

Sometimes a gold prospector does not have to dig very deep. At Lahontan Gold, part of the hope lies right at surface on the old tailings piles of the Santa Fe mine. The latest drill results provide new evidence to support this. Combined with a larger resource and a planned acquisition, this Canadian mining developer's story is gaining momentum.

At the heart of it all is the 28.3 km² Santa Fe property in Nevada's Walker Lane. Between 1988 and 1995, the mine produced about 359,000 ounces of gold and 702,000 ounces of silver. Roads and power connections are already in place. Such a restart can be achieved more quickly and cost-effectively than a greenfield project.

In mid-August, Lahontan increased its reported resource base by 22%. The estimate includes 1.195 million gold-equivalent ounces in the "indicated" category and 1.190 million ounces in the "inferred" category. The average grades are 0.78 and 0.61 g/t, respectively. These resources do not yet constitute economically proven reserves.

Of particular interest are the near-surface oxide deposits at Slab and York, whose resources increased by more than 37%. Such material can generally be processed using heap leaching, which can eliminate the need for a costly conventional mill. The updated preliminary economic assessment (PEA) also aims to examine the use of the extensive sulfide deposits in a second development phase.

Even the first PEA from December 2024 demonstrated the project's sensitivity to gold prices. Based on spot prices at that time of USD 2,705 per ounce of gold and USD 32.60 per ounce of silver, the after-tax net present value was USD 200 million, and the internal rate of return was 34.2%. The initial investments amounted to approximately USD 135 million. This is not the current project value. More recoverable ounces and higher metal prices could improve the new calculations, while increased construction and operating costs could offset some of those gains.

The tailings piles offer additional potential. On September 1, Lahontan reported on nine drill holes in a tailings pile, previously classified as low-grade, adjacent to leach pad number two. They averaged 1.64 g/t of gold. The material already mined would not need to be extracted from the rock again. This presents an opportunity to restart operations with low-cost ore.

The historic leach pad also still contains precious metals. On September 15, Lahontan reported 16.5 m there with 2.72 g/t of gold. The weighted average of the first ten drill holes was 0.50 g/t, compared to historically expected residual grades of around 0.29 g/t. Further results and processing tests are needed to determine economic viability. Approximately 16 million metric tons of material were once processed at the four historical leach pads.

CEO Kimberly Ann is simultaneously expanding access to the surrounding area. On September 16, Lahontan agreed to acquire Emergent Metals in exchange for shares. Upon completion, Emergent Metals' shareholders are expected to hold approximately 4.7% of the combined company. Lahontan would gain full control of West Santa Fe; it would also waive outstanding acquisition payments of approximately USD 1.73 million and certain production royalties. Added to this would be the immediately adjacent New York Canyon project, which would round out the land portfolio. Shareholder, court, and regulatory approvals are still pending.

At West Santa Fe, located about 13 km from the main project, a drill rig arrived on September 21 to drill approximately 3,500 m across 20 holes. Previous drilling had returned 36.6 m grading 3.11 g/t of gold equivalent from surface. New results are expected in 2026; an initial resource estimate is still targeted for year-end. The satellite project could later provide additional material for Santa Fe.

The stock has no shortage of potential catalysts. Lahontan Gold also recently announced a personnel change: Billy Choi will become the group's new CFO starting in October, replacing John McNeice, who is leaving the company. Choi most recently served as Vice President of Finance at Lithium Royalty.

The revised PEA, still scheduled for 2026, remains crucial to the stock's future performance. Lahontan aims to begin construction in 2027. If resources, tailings, and satellite data translate into a compelling mining plan, the stock could be revalued, and prices could rise significantly. Until then, the hot stock remains a speculative addition for risk-tolerant investors.

United Internet: A Comeback Candidate After the Big Cleanup

Ralph Dommermuth has demanded a great deal of patience from his shareholders. Building Germany's fourth mobile network was a costly endeavour. Now, United Internet is making cuts at 1&1 Versatel and Ionos. Approximately 800 jobs are set to be eliminated, and processes will be streamlined. This will initially cost about EUR 95 million.

Once implemented, this is expected to free up approximately EUR 55 million annually: up to EUR 30 million at Ionos starting in 2027, and around EUR 25 million at Versatel starting in 2028. The funds are intended to be reinvested in further development—at Ionos, for example, in AI products and the cloud business. Investors should therefore not count the entire amount as additional profit.

The half-year results already show progress. Revenue rose by 3.3% to EUR 3.09 billion, and EBITDA by 5.1% to EUR 676 million. The number of paying customer contracts increased by 550,000 to 30.27 million, driven by Ionos and Mail & Media. At 1&1, however, the customer base declined by 140,000 following a realignment of lower-priced plans.

For 2026, targets remain at approximately EUR 6.25 billion in revenue and EUR 1.45 billion in operating EBITDA; these figures exclude restructuring costs. Capital expenditure is expected to decline to between EUR 600 million and EUR 650 million, down from approximately EUR 731 million in the previous year. Less capital tied up and better results would be a positive combination for cash flow.

Earnings growth remains crucial for the valuation. A higher operating profit is expected next year, which makes the estimated P/E ratios of around 13.7 for 2026 and 11.7 for 2027 seem reasonable. Analysts are also correspondingly confident: there are currently 10 "Buy" recommendations compared to 3 "Hold" recommendations. No expert is currently advising a "Sell". With an average price target of just under EUR 32, analysts still see about 25% upside potential. For a long-term investment portfolio, United Internet stock remains an interesting comeback candidate, provided Dommermuth sustains the operational progress.

Generac: New Customer Amazon Fuels Fresh Optimism

A data centre without power is a pretty expensive warehouse. Amazon knows this too and is securing emergency power solutions from Generac. The US company, known as a supplier of generators for residential and commercial properties, is thus making deeper inroads into the market for large data centres.

The contract, announced on September 16, initially calls for expected deliveries totaling USD 2.4 billion for 2027 and 2028. Amazon also received subscription rights to just under 1.7 million Generac shares at about USD 200.93. A large portion of this will only be realized upon the corresponding generator purchases. The USD 8 billion threshold mentioned here is therefore not yet a confirmed order intake. Nevertheless, the agreement lays a strong foundation for a long-term partnership.

The second quarter already showed strong momentum. Revenue rose 11% to USD 1.17 billion, while business with commercial and industrial customers increased 29% to USD 556 million. Free cash flow jumped from around USD 14 million to USD 63 million. However, tariff refunds provided a boost, meaning the sharp increase in earnings cannot simply be extrapolated going forward.

By the end of July, the order backlog for data centre products stood at around USD 1.6 billion. Now Generac must expand production of large-scale generators and profitably deliver the additional volumes. This requires capital and a well-functioning supply chain. The Amazon contract significantly strengthens Generac's growth outlook.

Analysts also have high hopes for Generac. There are 16 "Buy" recommendations compared to just 6 "Hold" recommendations, and no "Sell" recommendations. On average, experts estimate the fair value at just under USD 296—more than 40% above the current price. Based on earnings estimates for 2027 and 2028, P/E ratios come out to around 16.8 and 13.4, respectively. Long-term investors may want to take a closer look at this stock as a portfolio addition. After the recent price surge, pullbacks may present attractive entry opportunities.

United Internet offers a chance for a comeback if operational progress and declining investments strengthen cash flow. Generac has gained a growth driver in Amazon but must now fulfill the additional orders profitably. Lahontan Gold presents the most speculative story: larger resources, promising drill results, and the planned acquisition are increasingly taking shape as part of Santa Fe's revival. The upcoming revised PEA must provide the decisive evidence. If it shows a convincing path back to gold production, that could be the next catalyst for the stock. For risk-tolerant investors, Lahontan remains an intriguing portfolio addition: the positive news leaves investors wanting more—now the economic prospects need to shine as well.