Close menu




February 26th, 2021 | 07:30 CET

GameStop, Triumph Gold, Nikola - the madness continues!

  • Gold
Photo credits: pixabay.com

The battle continues. Good against evil. Large hedge funds bet on falling prices while Internet users of the Reddit platform hold against it. There are probably only a few winners. After GameStop's share price rose by over 1000% at the beginning of the year, it collapsed like a house of cards. However, the game goes on with GameStop and other stocks touted on Reddit in the "WallStreetBets" forum.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: US36467W1099 , CA8968121043 , US6541101050

Table of contents:


    Bill Guy, Chairman, Theta Gold Mines Limited
    "[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited

    Full interview

     

    GameStop - Back in the game

    Last week, the GameStop share was replaced by Palantir Securities, a data analysis Company from the US, as the most discussed share in the forum. The comment volume on the Company co-founded by Peter Thiel was 2,535 compared to 1,465 on GameStop. Palantir's shares fell to their lowest level since late January after it reported disappointing fourth-quarter results with a loss of 2 cents per share. Analysts, on average, had expected earnings of 6 cents per share. The selloff has drawn the online crowd's attention only further excited by its association with Elon Musk, Tesla's CEO, the Wall Street Journal reported.

    On Wednesday, after the close of trading, GameStop shares exploded again without news. A so-called "gamma squeeze" is said to have been to blame. As a result, massive amounts of far-out-of-the-money calls expiring Friday were bought. Shares of AMC Entertainment, another prominent Reddit stock, also shot up 18% in regular trading. After the US close, the movie theater chain's stock rose another 19%. There is no end in sight to this frenzied trading.

    Triumph Gold - Time to position

    The situation for the crisis metal gold is much more relaxed at the moment. The ongoing correction, which has accompanied us since August after highs of over USD 2,000, is still underway. From a chart perspective, it is likely to go down one more level to the target range of USD 1,680-1,720. However, we see good entry opportunities in the long term, both in gold and in attractive mining stocks. The Triumph Gold share has already corrected well. While the value was still at CAD 0.48 at the end of July, it is currently at CAD 0.185 on the price board. Due to the extremely favorable price, large shareholders might consider increasing Triumph Gold further. Newmont Mining with 12.8% and the Zijn Mining Fund with 9.8% are some of the largest shareholders.

    The Canadians' main project is the wholly-owned Freegold mining project in Yukon. The area, which has an excellent infrastructure, is home to several deposits with great potential. The "Revenue" mine has copper-gold-moblyden-silver, the "Nucleus" mine has gold, and at "Tinta Hill," many differentiated metals are found. The results, which were published at the end of January, are promising. Last year's exploration program focused on test drilling near-surface gold targets in the Revenue-Nucleus and Mount Freegold areas. Nine holes were drilled for a total of 2,068.52 meters. All nine holes returned significant gold intercepts in underexplored or under-explored areas. The complete program for the current drill program has also been secured. Triumph Gold has just under CAD 5.0 million in its pocket at the moment.

    Nikola - Light at the end of the tunnel

    Last night it was exciting for the crisis-ridden electric truck maker Nikola. In a press conference, the fourth quarter and the 2020 fiscal year results were published. However, these are negligible. The self-proclaimed market leader's turnover is equal to that of a corner store in a small town in a mediocre location. The bulk of analysts expected minus USD 0.24 per share for the fourth quarter in terms of losses - Nikola announced a loss of 0.17 USD per share. For the full year, losses per share are expected to be minus USD 0.66. Much more decisive for investors is future forecasts and the Company management plans concerning production and possible cooperations. And it is precisely here that the US Company seems to have found the thread again. Nikola is receiving support from the highest levels. The new US president Joe Biden wants a 100% emission-free industry by 2050 at the latest.

    The Company unveiled its latest models on Tuesday. Nikola plans to introduce an FCEV variant of the Nikola Tre Cabover and the long-range Nikola Two FCEV Sleeper, for ranges between 300-900 miles, to the North American market. The Nikola portfolio includes trucks for the full spectrum of commercial freight operations, including the metro/regional Nikola Tre BEV Cabover for trips up to 300 miles, the regional Nikola Tre FCEV for longer ranges up to 500 miles and for quick refueling/rapid turnaround, and the long-haul Nikola Two FCEV Sleeper for long-haul operations up to 900 miles. Undeniably, the stock is still in the "highly speculative" category. However, with further positive developments in collaborations and production, the stock is poised for a comeback. Many negatives are already priced into the share price. From a chart perspective, a breakout above the USD 22 mark would generate a buy signal.


    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.

    Risk notice

    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.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered 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 Carsten Mainitz on January 25th, 2022 | 11:14 CET

    Allkem, Triumph Gold, K+S - Take advantage of price setbacks!

    • Gold

    What moves prices? When reduced to the core, it is supply and demand. So simple and yet so complicated. The forecast or anticipation of the two factors and the pricing of the future is what moves the stock market. Many developments and general conditions speak for rising commodity prices. While the prices of industrial and battery metals have been rising significantly for many quarters, the increases in precious metal prices, on the other hand, have been moderate. Where are the opportunities to take advantage of price declines?

    Read

    Commented by Carsten Mainitz on January 24th, 2022 | 12:20 CET

    Barrick Gold, Prospect Ridge Resources, Glencore - The starting signal has been given!

    • Gold

    With the publication of quarterly results last week and the achievement of full-year targets, the share of the second-largest gold producer Barrick Gold was able to gain. As a result, this also boosted the entire sector. In addition, the price of gold, which has maintained the USD 1,800 mark at a level of USD 1,830, provides support. The prospects for investments in gold shares remain good.

    Read

    Commented by André Will-Laudien on January 21st, 2022 | 13:15 CET

    Barrick Gold, Troilus Gold, Gazprom - Ready for takeoff: Gold ignites now!

    • Gold

    Increased geopolitical risks and inflation fears have created an initial reaction in gold. For weeks it stood motionless at USD 1,790 - 1,820. However, the intensification of the Russia-Ukraine conflict has now caused interest in precious metals to rise noticeably. The amount of gold held by the world's largest gold ETF also went up for the first time in two weeks. Since the beginning of the year, it has increased by around 3.7% to currently 981 tons. The highly regarded ARCA NYSE GOLD BUGS Index also moved significantly upwards with +7.8%. Where are the biggest opportunities in the gold market?

    Read