06. October 2021 | 11:13 CET
JinkoSolar, Silver Viper, Volkswagen: The time is ripe
Observers call silver the precious metal of the energy transition. Why? Silver is in solar plants, sensors for wind turbines, electric cars and infrastructure for 5G. The latter mobile communications standard is needed to make many devices smart and is thus also a mosaic of the energy transition. We present three stocks that are directly or indirectly related to silver.
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ISIN: JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , SILVER VIPER MINER. CORP. | CA8283341029 , VOLKSWAGEN AG VZO O.N. | DE0007664039
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
JinkoSolar: Share in no man's land
The JinkoSolar share has been riding a roller coaster in recent weeks. The reason lies in the uncertainty surrounding China. Many foreign investors have already withdrawn money months ago from the giant empire. Since the mess of the real estate developer China Evergrande has kept the world on tenterhooks, no new China fans have been added to the market. But it is worth taking a look at JinkoSolar itself. The Company is one of the most important in its sector and is convincing in quality and price. So it makes sense to buy the stock when it is weak, doesn't it?
Looking at the chart, investors will notice that JinkoSolar had already shown weakness before the China issue. In July, the share failed to break above the EUR 50 mark in German trading and turned down again. This sell-off, however, ended at EUR 34 and was not accelerated by the reports on China and Evergrande. Those who believe in the Company and assume that the overall market will recover in the coming weeks can look for an entry point in JinkoSolar. While the stock is not cheap and many market participants are already familiar with it, JinkoSolar is undoubtedly one of the beneficiaries of climate change and one of China's most promising companies.
Silver Viper: Is this a good opportunity?
Silver Viper must also be considered promising. The Company operates the La Virginia Silver Project in Mexico, where it has already announced grades of 3.15 g/t gold and 228 g/t silver over 13.13 meters. The team believes there is further potential on the property and intends to determine this as soon as possible and convert it into a resource estimate. The Company's share price has trended sideways over the past 12 months and includes repeated steep rises of up to 50%. This volatility can be an opportunity for short-term oriented traders. Currently, the value is trading again near the 52-week low.
For long-term investors, the current price level can offer the option to enter. The prices for precious metals have calmed down; at the same time, inflation continues to rise. Those who see precious metals as inflation protection and, at the same time, want to profit from the fantasy around regenerative energies can take a closer look at Silver Viper. Since the management also holds 23% of the shares, investors are in the same boat as the decision-makers, who have a combined 150 years of experience in commodities.
Volkswagen: Where is the bottom?
One of the drivers of the silver price is the auto industry. In recent months, companies such as Volkswagen have been the most consistent in making the shift towards electromobility. If you look at the roads in Germany today, e-cars from Volkswagen are relatively commonplace. A few years ago, that was unthinkable. These advances in e-mobility make Volkswagen a hot stock. In addition, the Wolfsburg-based Company is still valued much lower than its competitors, such as Tesla.
The chip crisis is currently harming all carmakers - semiconductors are in such short supply that even the assembly lines are at a standstill in some cases. These conditions are also weighing on Volkswagen shares, even though the group still has an ace up its sleeve in the form of Porsche. If the subsidiary were to be floated separately on the stock market, the investment would show its true value and probably bring a lot of fresh capital into Volkswagen's coffers. The share price is consolidating and has not yet found a bottom.
While at VW and JinkoSolar, it is currently not entirely foreseeable when an entry will be available, Silver Viper is trading near the 52-week low. The small value is always good for upward momentum, and it can be worthwhile to put a foot in the door even with small amounts. Compared to Volkswagen, however, the stock is still significantly more speculative.