October 25th, 2021 | 11:41 CEST
GSP Resource, Nordex, JinkoSolar - Alternative energies on the rise!
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"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Nordex - Now it is time to keep our fingers crossed
Nordex stock can point to a strong rebound. After a month-long sell-off from EUR 26 to below EUR 13, there was stronger interest down there. The downright beaten up stock reported operationally rising orders and a slightly higher expected margin for the following quarters. For the full year, over EUR 5 billion in sales are expected, but profit will only land at the zero line. In 2022, analysts estimate that EBIT will exceed EUR 200 million if revenues remain unchanged. However, Nordex's P/E ratio will still be above 20 until 2024, with the book value at around EUR 9 likely to be key support.
With the break of the downward trend line last Friday and the subsequent dynamic overcoming of the most recently capping 50-day line, the short to medium-term technical picture brightened. To confirm a medium-term relevant bottom formation, it is now necessary to take out the next resistance zone EUR 16.11-16.25 at the end of the day. Yesterday, the stock landed at 16.16, exactly in the middle of this resistance zone. If successful, further price advances in the direction of EUR 16.90 to 19.80 would be possible. If it does not break out, the price is threatened with a further fall towards EUR 13.20. It would be nice if the GreenTech stock finally manages the turnaround.
GSP Resources - New copper projects on the radar
Given the precarious commodity market situation, getting successor projects for mining companies off the ground quickly makes sense. Especially in the copper sector, there is a dangerous dependence on the few producers worldwide.
GSP Resource Corp. is a Canadian explorer specializing in properties in southwestern British Columbia. The Alwin Mine Project is close to its neighbor Teck Resources. The Company holds an option to acquire 100% of the Alwin rights, a claim for mining copper, gold and silver, located in the Kamloops Mining Division, 18 km west of Logan Lake. In addition, GSP can also claim 100% in the Olivine Mountain project, some 600 km away. Directly adjacent to GSP in the Highland Valley is the active mine of Teck Resources, one of the major resource producers focusing on copper.
Additional geological staff have now been mobilized in October to prepare for the next drilling campaign of approximately 1,000 meters at the Alwin mine project. It is expected to start at the end of the month and is designed to test the potential for large tonnages north of the Alwin deposit. The new rotation follows a summer program of five drill holes that totaled 1,439 meters. The 575.72 hectare Alwin Mine copper-silver-gold property is located on a semi-arid plateau in inland South Central BC and hosted a dilute head grade of 1.5% copper in the historic underground mine. Gold and silver grades associated with bornite increase with depth within each mineralized zone.
The Alwin Project continues to hold the best prospects for a commercially viable deposit. With a current fully diluted capitalization of only CAD 5.5 million, GSP could be interesting for little money, especially for major Teck Resources. Therefore, you should put a few shares aside.
JinkoSolar - Political pressure is growing over here and over there
Solar stocks are an important surrogate in energy production to the recent explosion in commodity prices. The more fossil energy increases in price, the more political pressure arises, especially in Europe, to provide alternatives. Although the price hikes in the raw materials sector also make modules more expensive, there will be no solution to this in the medium term.
The pull of rising commodity prices is also causing technology stocks in the alternative energy sector to go through the roof. The papers of JinkoSolar have also clearly broken away from the last correction lows. Photovoltaics is back on the wish list of politicians, and the plans of the probable German traffic light coalition, in particular, are generating additional fantasy.
In China, too, renewable energies are now to be further expanded with state aid because the share of solar energy in the electricity mix must increase. That should keep demand for solar modules on the upswing. According to market analyses, the essential raw material polysilicon could even ease slightly next year due to a good supply situation, ensuring rising gross margins for manufacturers.
A technical look at the Jinko share shows the value in an important resistance zone of EUR 48 to 52. This area would first have to be overcome for real fantasy on the upside. The all-time high is just under EUR 69 - but in May, the stock had already fallen to EUR 23.
Investments in GreenTech stocks are subject to strong cyclicality. While Nordex has been under pressure for months, the solar stock Jinko has been climbing again. GSP Resources is sitting on an excellent copper project, which could end up in the hands of a major at any time due to its favorable valuation.
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