Close menu

December 22nd, 2021 | 13:33 CET

Infineon, Saturn Oil + Gas, S&T - A lot of movement at the end of the year

  • Oil
Photo credits:

A lot is happening in the last stock market days of 2021. Fears of further lockdowns due to the Omicron variant are weighing on the markets, as are concerns about interest rate hikes in the near future. As a result, the DAX is denied a final spurt towards 16,000 points. The oil price is also consolidating due to the economic risks resulting from possible imminent lockdowns. Finally, Turkish President Recep Tayyip Erdogan caused a drumbeat by introducing several measures to prevent further dollarization of the economy. He succeeded in the short term, with the Turkish lira recovering by around 30% within minutes.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: INFINEON TECH.AG NA O.N. | DE0006231004 , Saturn Oil + Gas Inc. | CA80412L8832 , S+T AG (Z.REG.MK.Z.)O.N. | AT0000A0E9W5

Table of contents:

    Bullish outlook for Saturn Oil & Gas

    The year was eventful for the Canadian oil producer Saturn Oil & Gas. As early as June, the course was set for a spectacular realignment that saw the Company skyrocket overnight to become one of the leading producers in the Saskatchewan region. With the purchase of the Oxbow properties, production capacity was increased twenty-fold to 7,000 barrels per day. For the next three years, the Company also identified the potential to generate annual free cash flow by optimizing and completing more than 500 existing wells.

    The first figures for Saturn Oil & Gas following the acquisition of the Oxbow assets for the third quarter already showed that it had backed the right horse. The producer increased operating cash flow in Q3 by more than a factor of 13 compared to the same period last year, posting CAD 13.9 million. That corresponds to a cash flow of CAD 0.55 per share. Of the CAD 9.5 million in free cash flow, nearly half was invested in three successful wells.

    In a revised report, analysts at GBC AG raised their price target from CAD 9.20 to CAD 12.17 based on the Q3 figures. The maturity of the Oxbow asset and the low decline rate of 12% give Saturn Oil & Gas flexibility for future investment, analyst Julien Desrosier wrote in an available research note. The strong hedge against the WTI spot price does ensure debt repayment at the expense of limiting potential revenue growth. However, it creates revenue stability, facilitates long-term forecasts and secures internal financing for growth projects. In addition, the expert believes the Company is ready for the next stage of development. According to him, this is possible both organically and through acquisitions.

    Infineon benefits from competition

    Germany's largest semiconductor manufacturer, Infineon, benefited from strong quarterly figures from its competitors. From a chart perspective, this impetus was urgently needed to prevent a further slide below the support at EUR 38. A solid quarterly report from US chipmaker Micron and its forecast, which was positively received by the market, gave the Neubiberg-based Company a boost.

    The US counterpart reported earnings per share of USD 2.16 and revenue of USD 7.69 billion. Analysts had previously expected earnings per share of USD 2.10 and revenue of USD 7.68 billion. Micron CEO Sanjay Mehrotra attributed the strong numbers in the past quarter to "strong product portfolio momentum." In addition, new solutions for customers in the automotive, data center, client, mobile device and graphics sectors were delivered. Micron is benefiting from future trends such as 5G, AI and the introduction of electric vehicles.

    Management is also positive about the year ahead and expects the demand side to remain strong. "Today, it is not just data centers, but all end markets that are driving the data economy," Micron's CEO said. Memory and storage will continue to grow faster than the rest of the chip industry, driven by these new markets. "These things do not just affect calendar 2022; it goes beyond that."

    Little resistance

    Shares in the Linz, Austria-based technology group S&T plunged more than 25% to a low of EUR 12.42 following a sharp drop in response to a critical report from Viceroy Research. The investment firm, belonging to Fraser Perring, a well-known short-term seller, commented negatively on the valuation of the share and the quality of acquisitions by S&T, the group's growth and the balance sheet.

    Despite a detailed statement by the Company and several positive analyst opinions, a significant countermovement is still lacking. The private bank Hauck & Aufhäuser, for example, reiterated its buy recommendation with a target price of EUR 31.

    Investors are advised not to reach into a falling knife. Even if the allegations should prove groundless, the situation does not yet appear to have been cleared up from a technical perspective.

    The stock market year is drawing to a close, and the chance of new all-time highs has been wiped out with the arrival of the new Omicron variant. Also, the oil price consolidates. The setback offers a long-term buying opportunity in the oil producer Saturn Oil & Gas. The outlook for the next year is favorable for semiconductor producers, while S&T should be observed from the sidelines.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by Stefan Feulner on February 26th, 2024 | 07:15 CET

    Infineon, Saturn Oil + Gas, Block - Things are heating up here

    • Mining
    • Oil
    • GreenTech
    • chips
    • Technology

    Last week, all eyes were on chip giant Nvidia, which once again surprised Wall Street with a positive performance and a net profit increase of almost 770%. In Germany, Allianz also made headlines with a record profit and a significant dividend increase. In contrast, a report that could significantly impact the future of green technologies, with positive signals for the oil and gas industry, went somewhat unnoticed.


    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.


    Commented by Juliane Zielonka on February 9th, 2024 | 07:15 CET

    Prospera Energy, BP, Plug Power: Fossil or renewable energies - Who leads in the commodity market?

    • Mining
    • Oil
    • Energy
    • renewableenergies
    • Hydrogen

    The US is currently holding back on the export of liquefied natural gas shipments, posing a challenging situation for economies like Germany that rely on energy imports. Investors are increasingly turning their attention to companies that are helping to drive forward the energy transition. To reach that goal, oil and gas companies like Prospera Energy, with their ambitious oil extraction plans, are gaining the attention of many investors. For those preferring dividend investments, BP is an unavoidable choice. The global company also mixes its energy production with renewable energy. Plug Power is a pioneer in this field, having recently commissioned another hydrogen plant in Tennessee, USA. However, the excitement about the innovation is dampened by an analyst rating.