July 26th, 2022 | 11:01 CEST
Here is where the music plays: Deutsche Bank, Barsele Minerals, NEL
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"[...] We can make a big increase in value with little capital. [...]" David Mason, Managing Director, CEO, NewPeak Metals Ltd.
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.
Deutsche Bank: Anticipation of quarterly figures on Wednesday
After the European Central Bank (ECB) also recognized the seriousness of the situation last week and raised interest rates more significantly than expected, banks can hope again. The time of custody fees is over, and banks can finally go hunting for customer funds again. Unlike in previous years, this capital no longer incurs costs but can be parked at the central bank without risk if necessary. Alternatively, banks can lend it out and earn significantly higher interest rates than they did a few months ago. Although the Ukraine war and fears of recession have weighed on bank share prices recently, and the news from US banks such as JPMorgan Chase and Citigroup has been anything but positive, Deutsche Bank, in particular, is not in such a bad state.
For years, reports about restructuring at Deutsche Bank were a running joke - German financial institutions could not get out of restructuring. The problem was that Deutsche Bank and Co. lagged in digitization and suffered from market conditions. On Wednesday, Deutsche Bank is expected to make another announcement on the status of the Group's restructuring when it presents its quarterly figures. There is much to suggest that the announcement will be positive. The interest rate turnaround and past efforts are likely to have a noticeable impact. In addition, Deutsche Bank has sought and found its salvation in the investment bank during the low-interest period. Although the stock is stuck in a downtrend, Deutsche Bank could provide surprises. Investors should make a note of the share.
Barsele Minerals: Plan B can also bring returns
According to shareholders, the time for a comeback is also ripe for the share of Barsele Minerals. The stock has been stuck in a special situation for many months: the Company operates the Barsele project in Sweden together with joint venture partner Agnico Eagle. The deal is clear and positive for Barsele: Agnico Eagle pays for the exploration and can acquire a further 15% of the Barsele project after a preliminary feasibility study is completed. Currently, the stake is 45%. However, Barsele itself wanted to accelerate the work and buy the joint venture partner out of the deal. After much toing and froing, it was announced a few weeks ago that a 3,000-meter drilling program had begun in early June. This drilling will cost Barsele Minerals nothing and should also be suitable for advancing the project.
Although many shareholders had hoped that Barsele Minerals, together with a partner, could manage to buy Agnico Eagle out of the existing joint venture and are now showing disappointment, the mining giant's commitment to the project is also a good sign. Gold from safe regions and mining projects with low energy costs are currently in demand. In Sweden, electricity costs very little thanks to hydroelectric and nuclear power. There is no question that the Barsele project is promising. Already months ago, Barsele CEO Gary Cope commented when the share price was much higher: "The project is now so cheap that the share is a clear buy even without any exploration. I myself am buying every share I can get these days. It is the same with our partners and stakeholders. The sheer value of the Barsele project already justifies a significant premium. But we know that it is easy to expand resources. Everyone who is in the business and knows the project sees it that way. Agnico Eagle, too, by the way," Cope said last December. The stock is down but still interesting because of the underlying conditions. Those with a speculative mindset may want to lurk!
NEL: Hydrogen train starts rolling
For years, private investors have also been lying in wait for NEL: Every time the price of the hydrogen hopeful has come back, days of dynamic upward price movements follow. These price movements are underpinned by a steady stream of new orders. Just recently, the Company announced a major order for electrolyzers. The order volume is ten times higher than NEL's largest order to date, proving that the hydrogen train is just getting rolling. The energy crisis could breathe new life into the hydrogen industry. Since analysts, such as Berenberg, also see price targets near the 2-euro mark, music is in the air for the NEL share again. The share is currently correcting, but the EUR 1.45 mark may hold. But be careful: In the long term, the stock is still in a downtrend. NEL remains a hot potato!
Those who currently want to invest in promising sectors often have to deal with shares in a downtrend. In order to avoid betting on the wrong horse, it is advisable to enter the market in several tranches. Orientation is also provided by fundamental developments, such as the interest rate turnaround at Deutsche Bank or the quality of the Barsele project at the gold share of the same name. Only the growth stock NEL could be a little expensive after the rise of recent weeks.
Conflict of interest
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