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December 5th, 2022 | 10:14 CET

Investment stories that inspire: Freyr Battery, Manuka Resources, BASF

  • Mining
  • Commodities
  • Batteries
  • renewableenergies
Photo credits: pixabay.com

In order to be successful with stocks in the current market situation, a thorough analysis of companies and their business models is required. Blanket instructions for action do not lead to success. Investment strategies such as the value approach and the focus on unconditional growth are not guaranteed to lead to success. What matters now are convincing investment stories! We take a look at three stocks that are currently in focus and check their future.

time to read: 3 minutes | Author: Nico Popp
ISIN: Freyr Battery | LU2360697374 , Manuka Resources Limited | AU0000090292 , BASF SE NA O.N. | DE000BASF111

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    Freyr Battery: Attention, capital increase!

    At first glance, the Freyr Battery share has everything it takes for success on the market. The Company manufactures batteries for e-cars, continues to expand and has already forged promising partnerships with the major players in the industry - one example being Volkswagen. However, after Freyr Battery's quarterly figures were encouraging a few weeks ago, the stock went into reverse gear at the end of last week. The announcement of a capital increase put the value under pressure. Around 20 million new shares are to be issued at an offer price of USD 11.50. The sell-off began as the share price was well above this level when the measure was announced.

    With some luck, Frey Battery will still be able to hold its ground at the price of the new shares. This is supported by the fact that the new funds are intended to support expansion. Starting in 2025, Freyr Battery wants to score with large unit volumes. Another source of fantasy around the Company is that Freyr has a technology that is supposed to favor the recycling of old batteries. An intact and efficient circular economy could be a good argument for further partnerships with industry. The stock offers a medium-term perspective, but the air is out in the short term.

    Manuka Resources: Where cash flows and growth come together

    In contrast, the Australian company Manuka Resources offers incomparably more potential. The Company offers a good project mix and scores with growth and substance in equal measure. While a gold and a silver mine in Australia are currently ready for production and have so far alternately fed a processing plant that also belongs to Manuka, the Company was able to secure a gigantic vanadium project in New Zealand. The South Taranaki Bight project (STB project) offers a preliminary feasibility study and has been well advanced over the past several years. Among other things, the owners put about USD 50 million into the project. Initial estimates suggest that the project could be responsible for up to 55 million pounds of vanadium annually - which would make the project alone the third largest vanadium producer in the world after Russia and China.

    Vanadium is considered a critical metal for energy storage. Growing geopolitical tensions necessitate the establishment of redundant supply chains for critical raw materials. With its Anglo-Saxon legal system and current environmental regulations, New Zealand has everything it takes for a successful raw material project. Since operator Manuka Resources also has projects around gold and silver that generate cash flows, while at the same time, the resource is steadily increasing in the course of ongoing exploration, the Company looks interesting. Anyone wanting to take a closer look at the investment story will have the opportunity to ask the Company representatives from Manuka Resources questions live and online, free of charge, on December 7 at the 5th IIF - International Investment Forum.

    BASF: All China or what?

    There are hardly any unanswered questions about BASF at the moment - after all, Martin Brudermüller, CEO of BASF, has hardly missed an opportunity for an interview in the press in recent weeks and months. In particular, Brudermüller has taken a stand on China and made it clear that the Middle Kingdom will continue to be BASF's most important growth market. The statements did not exactly boost the share price. Now that the stock has recovered from its summer lows, BASF seems to have run out of steam. The Company remains sensitive to the economy. Now that the already priced-in recession is starting to make itself felt, the stock is far from a top pick.

    BASF is heavily involved in Asia, here India (Source: BASF SE)

    While investors currently see few arguments for buying BASF, Freyr Battery at least operates in a promising sector and has already convinced the industry with VW. However, due to the announced capital increase, the share price has run out of steam for the time being. In contrast, the Manuka Resources share has just taken a deep breath. Given the smart combination of cash flows and growth opportunities around vanadium from secure sources, the stock currently represents a promising mix. If the story catches on with more and more investors, the share could head north. Momentum could come from the International Investment Forum on December 7, where Manuka Resources will present.


    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.

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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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