Close menu




March 17th, 2022 | 13:10 CET

Hensoldt, Gazprom, Triumph Gold - These stocks will explode like Alibaba!

  • Gold
Photo credits: pixabay.com

The Ukrainian crisis has triggered a humanitarian catastrophe and a deep and extended price increase around the globe. Inflation is galloping, so central banks will have to react soon. In terms of COVID-19, not much is likely to happen after the freedom declarations, but whether the economy can sustainably gain momentum remains questionable. Supply chains have been disrupted, interest rates for financing are rising vehemently, and there are many question marks on the raw materials side, especially in the metals sector. As if by magic, there was a strong countermovement after the sell-off in China and Hong Kong in the last few weeks. And Alibaba & Co. made leaps of joy of up to 25% plus. We look at other price share price curiosities.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: HENSOLDT AG INH O.N. | DE000HAG0005 , GAZPROM ADR SP./2 RL 5L 5 | US3682872078 , TRIUMPH GOLD CORP. | CA8968121043

Table of contents:


    Steve Cope, President, CEO and Director, Silver Viper
    "[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper

    Full interview

     

    Inflation - With the Ukraine crisis still strong

    The central banks recently followed the guidance of the US Federal Reserve. In the so-called dot plots of the governors, the Fed has drawn an upward path for the development of interest rates, as the inflation figure of plus 7.9% from February held. In the European Union, the last measurement showed inflation at 5.6%, another high since 2008. Precious metals are considered the oldest currency in the world, and they can also provide protection against a decline in the value of their own currency in times of crisis. In Russia, there was no physical gold to buy at the beginning of the invasion of Ukraine. The Putin government probably knew why and quickly exchanged foreign currency reserves for the yellow metal. Now Russia's accounts can no longer be moved, so the accumulated gold remains in the vaults for the time being. There were 2,293 tons in 2021, which is 6th place in the international ranking after the USA, the IMF, Germany, Italy and France and just ahead of China.

    Triumph Gold - Promising property in the Yukon

    Despite the short-term strong gold price increase in 2022 to the course high of USD 2,066, the all-time high at around USD 2,080 could not be reached. A stronger reaction to almost USD 1,900 followed promptly. Many gold producers and explorers stopped their price increase and lost the previously hard-won terrain again.

    Canadian explorer Triumph Gold Corp. has some interesting properties in the Yukon Territory. The well-located claims host three world-class mineral deposits named Nucleus, Revenue and Tinta Hill. The projects are connected to Canada's road infrastructure and are located in the Au-Cu belt of the Dawson Range. The Company also owns 100% of the Andalusite Peak copper-gold property, located 36 km southeast of Dease Lake in the Stikine Ranges of British Columbia.

    Recent drilling at the Nucleus deposit has returned good results. Highlights include 4.50 meters of 2.00 grams per tonne gold (g/t) and 1.57 g/t silver within 46.28 meters. Drilling confirmed and extended large tonnage mineralization from the 2020 resource model, encountering multiple mineralization types including epithermal veins, sulphide breccias and precipitates, skarn and sulphide replacement.

    Current resource estimates are approximately 2 million gold equivalent ounces, with further drill results expected in 2022. Led by an experienced management and technical team, Triumph Gold is focused on actively advancing the project using multi-disciplinary exploration and evaluation techniques.

    The Big Creek property acquired in 2021, which hosts gold and industrially recoverable copper, is being aggressively advanced. For copper and gold, the signs on the commodity markets are stormy. Currently, the TIG share is quoted between CAD 0.10 and CAD 0.12. That could change soon, collect!

    Gazprom and Hensoldt - Suspended and much too cheap

    It is just crazy how some shares are moving at present! In the current crisis environment, all Russian titles came under the wheels until they were then completely removed from the market at the beginning of March. Other stocks in the armaments environment rose in part, as in the case of Hensoldt, by over 100% in just 4 weeks, and Rheinmetall also gained a whopping 50%. The apparent revaluation of the stocks is based on an expected public flood of orders for armaments, above all to make the countries of Europe more capable of defense. However, in an emergency, it will hardly work without NATO support and the great friend, the USA. Time is too short for that, and the availability of necessary industrial raw materials and high-tech components is not given.

    Gazprom is one of the world's largest oil and gas producers, with 477,000 employees. The Company had revenues of USD 120 billion and a market capitalization of over USD 400 billion at its peak in 2021. Meanwhile, over-the-counter price providers price the share at around USD 1 per share, a full 90% lower than at the December 2021 high. Whether and when the shares will be reinstated remains in question today. Despite the ongoing war, Russia says it continues to supply gas to Europe through Ukraine at high volumes. Most recently, gas purchases from the EU have increased significantly, indicating that gas customers expect further price increases and are now looking to stock up.

    Analytically, Hensoldt has now reached a neutral valuation zone. Experts estimate that the P/E ratio of currently 18 is to fall to around 13 by 2025. Sales should be able to increase by about 20% in the same period. Here, calculations must be made first, so further upward adjustments are expected in the coming weeks. The share presumably justifies its recent appreciation due to many new orders.

    In the case of Gazprom, it remains to be seen when and how the stock will resume trading. The distortions in the share price will probably take a few days to clear up. It is also not certain whether the US will completely suspend ADR trading. The only remaining option would be to exchange the ADR for the original Russian share, which would likely only be listed in Moscow. The German investor, who is currently invested, can do nothing but wait and see.


    In the current environment, good advice is expensive. Inflation rates in the USA are rising above 7%, but gold and silver are still not getting off the ground. The warlike developments could intensify daily or even lead to an international settlement. Either way, the high volatility is likely to continue. Hensoldt and Gazprom remain the plaything of the speculators. Triumph Gold's share will develop after the results of the exploration programs in 2022, which could deliver surprises.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    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.

    About the author



    Related comments:

    Commented by Armin Schulz on April 17th, 2024 | 06:45 CEST

    Barrick Gold, Globex Mining, BP - Commodities In the spotlight: Supercycle started?

    • Mining
    • Gold
    • Silver
    • Commodities
    • Oil
    • Gas

    Global demand for commodities is reaching new heights, partly driven by increasing geopolitical tensions. The exchange of attacks between Iran and Israel is a case in point. This conflict, deeply rooted in religious and political differences, continues to escalate and could have far-reaching consequences for international stability and commodity markets. With this latest escalation of the Middle East conflict, security aspects in the global competition for important resources such as gold, silver and copper are taking center stage. China is demonstrating its hunger for resources. However, the price of oil has also risen recently. There has long been talk of a commodity supercycle. Perhaps it has now finally begun. Where should one invest now?

    Read

    Commented by André Will-Laudien on April 17th, 2024 | 06:30 CEST

    Discount battle over: Commodities on the counter-offensive! Rheinmetall, Power Nickel, BASF and Varta in focus

    • Mining
    • Nickel
    • Commodities
    • Gold
    • Silver
    • Defense

    Since the bombing of Israel by Iran, the clocks are ticking differently in the Middle East. The next stage of escalation has been reached. If Israel now uses the right to defense as an opportunity to initiate something bigger, it is here: the conflagration. Gold and silver are shining as safe-haven currencies and pulling long-neglected commodity shares through the roof. Now is the time to keep the sails in the wind and ride the long-awaited upward momentum. In the energy transition, strategically safer jurisdictions that can safely serve the growing hunger for commodities are still in demand. We highlight a few opportunities.

    Read

    Commented by André Will-Laudien on April 16th, 2024 | 07:05 CEST

    The cannons are thundering, and gold and silver remain in demand! Barrick, Newmont, Desert Gold and SMT Scharf in focus

    • Mining
    • Gold
    • Silver
    • Commodities

    The overnight attack by Iran on Israel underscores the current geopolitical uncertainty. Regardless of whether there is further escalation in the Middle East, the world has already changed dramatically since February 2022. This includes shifts in investor behavior. Until the first quarter of 2024, shares in the artificial intelligence and high-tech sectors were bullish; now, defense stocks and precious metals are on the agenda. After decades of disarmament, NATO, in particular, is now facing a decade of rearmament, and private investors are expressing their restraint in consumption by increasing their focus on private security. This is reflected in the increased purchases of gold and silver. For years, precious metals have been stable guarantors of the daily dwindling purchasing power. We believe that the new valuation cycle in the commodities sector is only just beginning, which is why we are examining favorable entry opportunities.

    Read