19. May 2020 | 16:37 CET
First Majestic Silver, K+S, Scottie Resources - the best entry opportunities
The advantage of volatile markets is that investors can see potential entry prices that they have missed in the past. Whether or not it is still worth taking action now, of course, depends on the future prospects. A price correction in the share price usually has its reasons, but crashes are special opportunities for those who invest in the medium to long term and follow an anti-cyclical investment approach.
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ISIN: CA81012R1064 , CA32076V1031 , DE000KSAG888
Focus on gold
Scottie Resources is a Canadian exploration company focused on exploring its own properties in the Golden Triangle of British Columbia. In addition to the Scottie Gold Mine, which produced a total of 95,426 ounces of gold at an average grade of 16.2 g/t from 1981 to 1985, the company also owns other areas in the region. With 24,589 hectares, the company is a serious player in the Golden Triangle.
With the successful closing of over CAD 3.5 million in financing, the Company is well funded for the current year to execute a planned drilling program. Scottie Resources' market capitalization is less than CAD 20 million at a price of CAD 0.215. A successful drill program should boost the value of the stock.
The Silver Share
The shares of First Majestic Silver have already gone on a rollercoaster ride in 2020. At the beginning of the year, the shares changed hands at over CAD 16.20 and in mid-March the value briefly slipped below CAD 5.40. In the meantime the price has already recovered to a level of over CAD 12.00. The price fluctuations of the shares are due to the volatile silver price.
The correlation of silver price and share price is due to the fact that the company is margin-dependent. The lower the price of the precious metal, the lower the profit or the higher the loss. The same applies in the other direction. If you want to speculate that the silver price will rise, First Majestic Silver shares might be the right instrument. The market value of the company was recently over CAD 2.6 billion.
Minerals for modern life
K+S is a German supplier of mineral products for agriculture, industry, communities and consumers. In Europe, Asia, Africa as well as North and South America, more than 14,000 people were employed in its offices and production facilities at the end of the year. In total the company has over 94 locations around the globe. In Africa and Asia, the company operates exclusively sales offices.
In connection with the Corona Pandemic, K+S is important for a system-relevant basic supply in the chemical, pharmaceutical, food production, animal feed and agricultural sectors. Over the past five years, the market value of K+S has shrunk by more than 80% to just over EUR 1.0 billion. At the beginning of 2011, the shares were still traded at over EUR 57.00, and at EUR 5.53 shares changed hands most recently.