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September 22nd, 2022 | 13:28 CEST

Here are the rising prices: Nordex, Defense Metals, JinkoSolar

  • Mining
  • RareEarths
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Recession worries and interest rate fears: experience shows that the market always goes up when sentiment is at its lowest. The first market participants, who have so far always been on the side of the bears, see hope. With the upcoming financial season, new bad news could herald the final sell-off. And then? Which stocks have long-term potential, and who could miss out on a special boom?

time to read: 3 minutes | Author: Nico Popp
ISIN: NORDEX SE O.N. | DE000A0D6554 , DEFENSE METALS CORP. | CA2446331035 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007

Table of contents:

    Wind power paradox: Why Nordex is in the doldrums

    Anyone producing electricity today is perfectly positioned. While the business models were already profitable before the Russian war, the returns are going through the roof today, given rising prices. As a shovel manufacturer in a gold rush, Nordex should be benefiting. However, the thin margins hurt the value despite its full order books. In the meantime, despite its origins, Nordex was considered a company that no longer had much to do with Germany at all. The reasons: The rotor production in Rostock was wound up, and orders from Germany also virtually stopped coming in. Instead, things went better in South America. However, a small order from a regular customer for 31.5 MW now gives hope. On top of this, Nordex is also to provide service for at least 15 years.

    The order gives hope that the expansion of wind power will also pick up again in Germany. However, for Nordex to benefit, the Company must get a grip on its margins. Nordex will only be able to put its horsepower on the road, and the share price will only benefit if something of the many orders comes to fruition. Since the stock is in a downtrend, investors need not rush into anything. However, bargain hunters can already keep an eye on past lows.

    Defense Metals: Critical metals for the day after tomorrow

    One aspect of the weak margin at Nordex is increased costs for basic and raw materials and logistics in the construction of wind turbines. In the area of raw materials, critical metals, which are increasingly coming from China today, are becoming more and more important. Although the Middle Kingdom is currently showing itself to be cooperative and is walking a tightrope between Western partners and Russia, this concession could also be due to the still strong international integration of the respective economic areas. In the long term, self-sufficiency and short supply chains are gaining in importance - whether for reasons of security of supply or cost and environmental protection. The Canadian company Defense Metals is advancing one of the most promising properties, the Wicheeda rare earths project. Rare earths are needed around modern electronics, but also in the renewable energy sector.

    In August, the Company completed exploration drilling at Wicheeda and is awaiting laboratory results. Further work is currently underway to provide information on the economic prospects. A preliminary economic feasibility analysis has already been completed on Wicheeda, including a property valuation of CAD 517 million. With new results, this value could even increase in the future. The property covers a total of 4,244 hectares, is developed by roads and is located close to electricity, highways and railroad lines. The Defense Metals share price has already risen recently. Critical commodities from safe economies and with an ESG profile will likely be in demand over the long term.

    Defense Metals, by the way, was invited to the International Investment Forum (IIF) at the end of September.

    JinkoSolar: Watch out for this China firecracker

    Photovoltaic systems are also in demand in the long term. Anyone ordering such a system today must hope it will be installed before the end of next year. Profiteers are companies like JinkoSolar. The Company scores in terms of quality and price. But an investment is not a foregone conclusion. Here, too, basic and raw materials play an important role. Since PV manufacturers compete with each other, rising prices can quickly erode margins and cause the stock market to plummet because of ambitious valuations. In addition, in the case of JinkoSolar, there are geopolitical tensions and efforts by Western countries to diversify and establish their industries in critical areas. The JinkoSolar share is currently at an exciting mark: If the value remains above the EUR 55 area, a recovery movement could begin. Below that, however, there is a threat of losses from a chart perspective.

    Times are challenging. Even companies that manufacture urgently needed products are currently on shaky ground. The reason is the uncertain situation around the world economy and how it will be organized in the future. Companies like Defense Metals, which are not yet producing but have metals in demand in the ground, do not yet have to deal with short-term problems in the market. In the long term, however, they could play a major role. Those betting on a market comeback today should not forget such profiteers of the day the day after tomorrow.

    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 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.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

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    Commented by André Will-Laudien on September 25th, 2023 | 08:35 CEST

    Make a return instead of sitting on the sidelines! Nel ASA, Desert Gold or Nikola Motors - Who belongs on the buy list?

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    Recalculation! These are the bare figures: TUI, Saturn Oil + Gas, Deutsche Bank - Buy prices non-stop!

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