February 1st, 2021 | 07:40 CET
K+S, Osino Resources, McDonald's: Where patience pays off
Table of contents:
"[...] The transaction offers benefits to all parties: Shareholders now have three promising projects in their portfolio. [...]" Bradley Rourke, President, CEO and Director, Scottie Resources Corp.
K+S: Everything is in order here
The K+S share experienced its heyday during the last commodity boom and was even catapulted into the DAX. The fertilizer specialist benefited above all from demographic factors. More and more people need to be supplied, and in addition, there is a growing demand for biofuels, which was the thinking of many investors more than fifteen years ago. Today, the situation is similar. Central banks and governments are again working to create an inflationary environment that could drive commodity prices. Although biofuels no longer play a role today, the price of K+S in recent months has already shown the beginnings of where the journey could lead over the next few years.
If one looks at K+S in the long-term chart, one could assume an end to the multi-year downward trend. After a dynamic breakout movement, the value is now consolidating and moving towards the breakout level of around EUR 9. If the value turns upwards again in this area, this would confirm the breakout and the positive chart picture would immediately catch the eye of even more investors. Now that K+S has been able to sell its US business, it also has more room to breathe fundamentally. Although the share has been a loser in recent weeks, the long-term picture remains promising. Every further drop in the share price makes K+S cheaper. However, the share should find a bottom between EUR 8 and EUR 9.
Osino Resources: Gold explorer on fertile ground
The Osino Resources share has already reached a bottom around the CAD 1.25 or EUR 0.80 mark. The paper of the Canadian precious metals Company has been trending sideways at this mark for weeks. Osino Resources operates in politically stable Namibia in the middle of a gold mining area. In the vicinity of Osino is a producing open-pit mine, which shines with high gold grades. Osino has recently explored a similar-sized area, with indications of further deposits beyond that. Only the gold grades currently lag behind the neighboring Otjiko mine. However, Osino recently announced drill results with grades of 1.75 g/t and 1.74 g/t, which are quite competitive.
If Osino Resources manages to confirm these grades, the share could develop further potential. The neighboring project shows that open-pit mining is possible in this area. It is not unlikely that Osino's Twin Hills property's geology is similar to the Otjiko mine geology, some 80km away. Moreover, since Namibia is considered a safe mining location and mining is highly valued in the country, the current price level at Osino Resources could be fertile ground for long-term investments.
McDonald's: Something heavy in the stomach here
The McDonald's stock is also considered a long-term investment by many investors. However, things are not looking so good at the moment for the burger griller, which has increasingly followed the spirit of the times in recent years and even offers vegan alternatives. Thanks to its drive-thru counters, the Company is weathering the crisis well and is undoubtedly benefiting from the trend toward ordering food at home. Added to this is the strong brand and the many restaurants in prime locations around the world. But the share price is weakening. Over a period of one year, the stock has lost around 12% and has failed to break through the EUR 200 mark three times in three years.
In line with the old stock market adage "what doesn't rise will fall," the share is currently preparing to correct in the direction of EUR 160. The share price has found support there several times in recent months. However, if things go badly for McDonald's, prices of EUR 140 could also be possible in the short term. Below this level, the long-term upward trend would even start to falter. While K+S and McDonald's have not yet found their bottom, Osino Resources seems to be trading in safe waters again after a correction. Instead of buying into the correction, investors make sense in waiting for a bottoming out. Even when essential support zones in the chart are reached, the stock does not immediately jump back up. Investors can take their time with an entry and do not have to chase the price. This is a major advantage over many hype stocks.
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.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. 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.