Close menu




April 22nd, 2022 | 10:06 CEST

Investments of yesterday for tomorrow: K+S, Globex Mining, Netflix

  • Commodities
  • entertainment
Photo credits: pixabay.com

It is better to have and not need than to need and not have - this rightly somewhat hackneyed saying is more topical than ever. Everything is in short supply, whether structural timber, metal fittings or inverters for photovoltaic systems. The first property developers are already reacting and are no longer planning so far into the future for new construction projects. The reason - galloping prices could otherwise eat up the margins. We explain how you as an investor can invest in this phase with the example of three companies below.

time to read: 3 minutes | Author: Nico Popp
ISIN: K+S AG NA O.N. | DE000KSAG888 , NETFLIX INC. DL-_001 | US64110L1061 , GLOBEX MINING ENTPRS INC. | CA3799005093

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

     

    K+S: Bread for the world

    As a fertilizer producer, K+S is a winner in the current circumstances. The share price has multiplied in recent months. With the war in Ukraine severely disrupting food production, the focus is now on making agriculture as efficient as possible in the rest of the world. K+S is an important supplier for this. The Company has been making profits again for some time. The turnaround and good market conditions are coming together for K+S.

    Even before the outbreak of the war, K+S was optimistic and wanted to expand its existing business and open up new areas. The fact that these plans are now receiving so much tailwind from the market as a whole is a fortunate coincidence for K+S. But the favorable situation has already been comprehensively rewarded by the market. The share has made considerable headway, and a correction is imminent. Fundamentally, however, K+S is well-positioned to generate good figures beyond 2022.

    Globex Mining: 200 raw material projects in safe North America

    While the K+S share tends to be rather expensive, the Globex Mining share has not yet gained as much ground. Globex Mining is a Canadian company with over 200 commodity projects valued at the upper double-digit millions. What at first glance appears to be a colorful general store has a system: Globex has sold projects again and again in the past years. Currently, the Company's portfolio includes copper, nickel, lead, gold, silver, platinum, palladium, manganese, titanium, iron, molybdenum, lithium, cobalt and rare earths.

    The projects are in various stages of development. They range from properties where only some rock samples have been taken to projects for which feasibility studies already exist. Examples are the Authier Lithium Royalty (resource and feasibility) or the Rocmec1 Gold Mine (resource estimate 570,000t gold at 6.32 g/t ). Globex Mining's share price has picked up recently, but the sheer mass of projects may not yet be adequately valued. Even a few exits at current market conditions could be a catalyst for the share price.

    Netflix: The tension is out

    While companies like K+S and Globex Mining focus on tangible assets, Netflix is all about digital content. For about a decade, this approach was considered the most promising - after all, digital products can be multiplied, and business models scaled that way. The higher the number of subscribers, the lower the proportionate costs. It is not surprising that Netflix has invested billions of dollars in new series and films over the years - after all, the Company was on a growth path. Recently, Netflix lost subscribers for the first time in years. We predicted this setback here a few weeks ago - the pandemic is as good as over, and people want to get out - even if the cinema costs as much for an evening as Netflix does for an entire month!

    In the stock market, too, the conviction is gaining ground that digital consumption and hyped tech giants, such as Netflix and also Peloton, are losing ground as the economic foundation erodes. In large parts of the Western world, this foundation still consists of industry and the middle class. When people have hardly any money left in their wallets due to sharply rising prices and when companies reach their limits due to sputtering supply chains and high purchase prices, needs shift to essentials. In the end, it will be tangibles and commodities instead of digital subscriptions.


    As scarcity and rising prices are also increasingly impacting the real economy and people are beginning to fear for their jobs, investors should focus less on "the next big thing" and more on proven problem solvers. Energy producers and suppliers of fertilizers and seeds are currently hitting a nerve in the market. Commodity companies are also in demand. Firstly, because of scarcity, and secondly, because of the trend toward diversification of supply chains. Since the pandemic and the Ukraine war, it is no longer practical for certain raw materials to come predominantly from one country. Suppliers from safe regions, such as Globex Mining, which operates mainly in Canada and the US, could score points.


    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.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    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



    Related comments:

    Commented by Stefan Feulner on September 27th, 2022 | 13:47 CEST

    Barrick Gold, Tocvan Ventures, Newmont, Glencore - Long-term positioning in gold makes sense

    • Mining
    • Gold
    • Commodities
    • Investments

    The FED's recent interest rate hikes and Chairman Jerome Powell's statement sent both equity and precious metals markets into the valley of tears. By all means, the monetary guardians want to curb rampant inflation. Whether this will succeed seems at least questionable. After all, it should not be forgotten that this would put an end to the already sputtering engine of the global economy. In addition, many already highly indebted countries are falling into ever greater problems due to higher interest payments. Thus, it is time to take a long-term, anticyclical position in the precious metals sector.

    Read

    Commented by Armin Schulz on September 26th, 2022 | 12:41 CEST

    BASF, Manuka Resources, Varta - Buy when the cannons thunder!

    • Mining
    • Commodities
    • Batteries
    • chemicals

    That is Warren Buffet's motto, and the Oracle of Omaha has done very well with it over the past decades. In the biggest crises, the investor always made a bold move, while others waited rigidly in fear. This could also be observed during the last Corona Crash. Many waited for lower prices, or at least a retest of the lows, which never came. At the moment, it seems to be the case again that no one wants to buy shares, and this is precisely where the opportunity lies. No one can predict the exact low, but if you want to be there, you have to get in at some point. We look at three companies that have great potential.

    Read

    Commented by Stefan Feulner on September 26th, 2022 | 10:28 CEST

    BYD, Globex Mining, Newmont, Freeport-McMoRan - Copper with doubling potential

    • Mining
    • Copper
    • Gold
    • Commodities
    • Electromobility

    The price of copper has lost around a third since March of the current stock market year. Investors are selling the metal, which is known as an economic barometer, due to global recession fears and concerns of a drop in demand. However, due to the great importance of copper with regard to the energy turnaround, the tide is likely to turn again soon. Mining companies and commodity traders are already warning of a massive shortage of the world's most important metal. Goldman Sachs expects the price of copper to reach USD 15,000 per ton by 2025, which would mean a doubling of the current level.

    Read