September 30th, 2022 | 12:36 CEST
Higher, faster, further: BYD, Infinity Stone, Porsche, Varta - The energy transition stock portfolio is wanted!
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"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
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.
BYD - The Chinese automotive giant has arrived in Europe
Three weeks before the Paris Motor Show from October 17-23, Chinese manufacturer BYD ("Build Your Dreams") presents its new models for the European market. Germany is one of the focus markets for the upcoming offensive of the well-known Chinese brand. German drivers will soon discover new models on the road, whose logos will first have to be memorized. How long this will take depends on the pace at which BYD wants to conquer the European continent and which discount programs will be used for marketing.
Warren Buffet's protégé is currently in the middle of the preparations for the market launch, and the first details are already available. The website has just been launched, and the price range is also known. The entry-level model Atto 3 will be available from EUR 38,000, while the sedan Han and the SUV Tang will start at EUR 72,000. From 2023, the BYD Seal will also be available at around EUR 30,000. It will likely make life difficult for the competitors - Tesla Model 3 and VW ID.3. Let's see how the first models will be introduced to the market and how much market share they will take away from the top dogs.
In the meantime, the BYD share has gone under the wheels. The stock held its ground in the EUR 30 to 35 range for a long time, but now the Chinese public share has fallen back to EUR 25.80. The figures published at the end of August could still convince analysts, but now the technical catch zone of EUR 20 to 25 is coming into focus. Our advice: Stay on the sidelines of the stock market darling from China until the traffic light turns green again.
Infinity Stone Ventures - Critical metals for the energy transition
For Infinity Stones Ventures (GEMS), the energy transition and the increasing number of electric vehicles in the next few years is an opportunity to develop into an internationally known commodity. The Canadian Company searches for critical metals in the provinces of Quebec and Ontario and focuses on the Taiga, Hellcat and Camaro lithium projects on an area of 3,850 hectares. Very close to Camaro is the well-known Corvette lithium trend discovered by Patriot Battery Metals in 2017.
According to the latest news, Infinity is looking to move forward quickly. Extensive exploration programs have been agreed upon with Axiom Exploration Group of Saskatchewan for the Camaro and Hellcat properties. The rocks hosted there include lithium-bearing pegmatites that can be explored using AI-assisted machine evaluation techniques. The focus remains on the prospective LCT region around James Bay. Also owned by Infinity is the graphite project called Rockstone in Ontario. Here, with the help of the world-renowned certification and testing service provider SGS, the Company wants to investigate the extent to which the stored graphite can be purified via acidic fluoride leaching in such a way that the end result is a raw material with EV battery quality (99.8% CG purity).
The currently available raw material selection enables Infinity Stone to achieve a future supplier position in the battery market, which is expected to register a growth rate (CAGR) of 15.8% during the forecast period 2022-2027, according to a study by Mordor Intelligence. Specifically, the automotive battery segment is expected to witness significant growth during the forecast period owing to the increasing adoption of electric vehicles in several major and emerging global economies. The recent German-Canadian energy initiative initiated by Chancellor Scholz makes it easier for local resource companies to find potential industrial customers in Europe. Infinity Stone shares are trading in a broad corridor of CAD 0.25 and 0.45 with good trading volumes. The latest news should lead to renewed interest. After all, the promising stock is currently valued at only around CAD 15 million.
Porsche AG versus Varta - Buy or sell?
Porsche AG is not really a symbol of climate change because this brand stands for classic sports cars, pleasure and freedom. Nevertheless, the Swabians are working for a more green ambience, at least in the product mix, and are also focusing on e-mobility. The clientele of the last combustion cars from Zuffenhausen will probably go on record as saying that a green attitude to life can also be maintained with a rarely used 911 since shopping trips are made with the little Stromer, after all. Irrespective of what is decided in the field of mobility in Brussels in the medium term, the "Porsche" brand, which is charged with a lot of emotion, will always exist.
Yesterday, Porsche AG went public with an initial listing of EUR 84. The issue price has been set at the upper end of the subscription range of EUR 76.50 to EUR 82.50. The initial listing thus flushes just under EUR 9.4 billion into the coffers of parent company Volkswagen. The market capitalization of the listed subsidiary amounts to around EUR 75 billion ad hoc, which is a quarter more than the Mercedes share after the spin-off of the truck division. At the same time, this high value represents almost 90% of Volkswagen AG. It's curious what kind of stock market reputation can be generated with a dream brand like Porsche at the start. The following weeks will show whether the share will be an investment vehicle because the free float is thin and the investor community is unique. In a weak environment, however, there was initial selling pressure towards the close.
The Varta share remains just as firmly in the field of vision. The Company had issued three sales and profit warnings to the market in quick succession. The Guidance has now been suspended completely, and the stock exchange price crashed a further 50%. Caution is advised here. The chart suggests further lower prices, even though the value has already lost 85% from the top. It is also reported that CEO Herbert Schein is taking on a new task. The price said goodbye yesterday near the daily low. Keep an eye on the technical catch zone of EUR 20 to 25.
The energy transition is closely linked to e-mobility. Mammoth investments in GreenTech and infrastructure are being initiated worldwide to counteract the constant global warming. Currently, stock market trends are also negative in this popular investment sector. But the lower the values fall, the greater the resulting profit opportunity could become. In addition to the aforementioned standard stocks, commodity stocks such as Infinity Stone Ventures are also suitable for long-term portfolio building.
Conflict of interest
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