Close menu




August 26th, 2021 | 11:08 CEST

Lang & Schwarz, NEL, GSP Resource - Short-term or long-term rebound?

  • Copper
Photo credits: pixabay.com

No annual general meeting, no dividend, in-house tax discovery and loss of confidence - the news from Lang & Schwarz on Tuesday could hardly have been more severe. Accordingly, the share price fell by more than 35% in after-hours trading. On Wednesday, the share price rebounded with a double-digit gain. But the possible involvement of the stockbroker in the Cum-Ex deal will certainly keep investors busy for longer. The NEL share also made significant gains on Wednesday. It benefited from an order and the generally friendly mood in the hydrogen sector. Copper specialist GSP Resource has been on the rise again for some time because the raw material could soon become scarce. When asking how sustainable the rebound is in each case, one should look at the details.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: LANG+SCHWARZ AG NA | DE0006459324 , NEL ASA NK-_20 | NO0010081235 , GSP RESOURCE CORP. | CA36249G1090

Table of contents:


    Lang & Schwarz's confidence gambled away with Cum-Ex?

    On Tuesday evening, the Board of Lang & Schwarz announced that it would cancel the Annual General Meeting scheduled for August 26, 2021. The dividend and the stock split are also off the table for the time being because on August 23 (evening), the interim report of a tax audit was received. The transactions of the years 2007 to 2011 are being examined concerning the capital gains tax credit. Thus, the Company seems to slide into the Cum-Ex scandal. Lang & Schwarz rules out the possibility of multiple capital gains, tax refunds or anything similar. Nevertheless, it is possible that those responsible could subsequently be assessed differently for tax purposes. In this case, up to EUR 61 million would probably be due. Therefore, the Executive Board decided to set aside a provision of EUR 45 million from the profits of the first half of the year. Although the amount is still manageable, confidence has been lost for the time being. Only a few days earlier, the Company had celebrated "the best half-year in its history". Even if the interim report of the tax investigation was not yet available, the question may at least be asked whether Lang & Schwarz should not have reported on the investigations earlier. Customer confidence could also suffer as a result of the investigations. Therefore, it is likely that the rebound was relatively short-term and that the share will be volatile for the time being.

    GSP benefits from scarce copper

    The GSP Resource share has made a more solid rebound in recent weeks. It went up by a good 25% in about 4 weeks to CAD 0.28 for the shares of the copper specialist. The reason is sustainable: Copper is scarce and prices are rising. Thus, the head of the Munich-based economic research institute Ifo, Clemens Fuest, already warned the Handelsblatt: "If commodity prices continue to rise significantly across the board in the coming years, this could become a problem." For US investment bank Goldman Sachs, copper is the favorite in the commodities sector, after gold. For them, copper is the crucial metal for the transformation to a greener economy; moreover, especially in China, there are problems in production and thus a shortage of supply.

    GSP Resource (GSP) is benefiting from this. The Canadians own two projects in British Columbia. Copper has already been mined in both areas in the past. At that time, however, they were mined with picks and lorries. So the chances are good that modern production methods will be used to extract attractive quantities from the ground. A small capital increase has just been successfully placed to finance exploration. The drilling program for the flagship project, the Alwin Mine, is currently underway. The results should be available by the end of August. Interestingly, Teck Resources' Highland Valley Copper Mine is located in the immediate vicinity. If the drilling results are positive, the probability that the large competitor will make a takeover bid increases. In addition, the Olivine Mountain project was purchased in May. Two discoveries have been reported so far, the Asp deposit with 3.51% copper and some silver over 3.4m and the Hop deposit with 7.49% copper, 23 g/t gold and 89.5 g/t silver.

    GSP shares were already trading at CAD 0.46 in early June. With successful drill results at the larger project, this mark should be reached again. The favorable general conditions for copper should not change in the near future.

    Orders from the UK beckon for NEL

    The NEL share is also in a rebound. The Company is currently benefiting from the renewed friendly sentiment towards companies in the hydrogen universe. In addition, the framework agreement with the consulting and engineering Company Wood gives rise to hope. The new partner employs around 40,000 people and offers consulting, project and operating solutions in more than 60 countries. Together, they intend to implement hydrogen projects in a wide range of countries. In the meantime, the NEL partner has secured a loan of around EUR 500 million. The loan is to be used to exploit the opportunities presented by the energy transition and to develop hydrogen projects, among other things. As a cooperation partner, NEL should be able to benefit from this. New orders are also needed, as the last quarterly figures had disappointed.


    All three shares are in rebound mode. Due to the ongoing investigations, this is likely to be relatively short-term at Lang & Schwarz, and the share will remain volatile. At NEL, hope continues to rule, as the operating figures are likely to remain weak. GSP is benefiting from the copper shortage, and the excitement for the drill results is rising.


    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 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.

    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

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by André Will-Laudien on June 20th, 2022 | 12:58 CEST

    Nel ASA, Nordex, Nevada Copper, Siemens Energy: Energy Crisis 3.0 - Copper is the solution!

    • Copper
    • Hydrogen
    • GreenTech

    The copper market is constantly on the move. Along with Shanghai and New York, the London Metal Exchange (LME) is now one of the world's largest metal trading centers. In Europe, the LME is the benchmark for copper prices and metal trading. In contrast to other exchanges, part of the trading is still done by call and floor trading by brokers in an open ring. The LME copper contract is the second-largest exchange-traded contract on the London Metal Exchange. The demand volume for copper has been at a very high level since 2018, currently even at a 25-year high. Last week, prices came under slight pressure as the specter of recession flew through the trading halls. Where are the biggest opportunities at the moment?

    Read

    Commented by Nico Popp on June 13th, 2022 | 10:40 CEST

    Stocks on the brink - here is how you can trade: thyssenkrupp, Nevada Copper, K+S

    • Copper
    • Commodities
    • fertilizer

    When companies are on the brink of collapse, it is usually already over for the stock market: As a rule, share prices react quickly to corporate distortions. Sometimes, however, these difficulties are only anticipated by the market and exaggerated in the context of the overall market. One such example is thyssenkrupp. The Company currently has its back to the wall again. We look at the situation and draw parallels with comparable companies at differing stages.

    Read

    Commented by Fabian Lorenz on June 8th, 2022 | 13:50 CEST

    Shares: Plug Power and BYD with exclamation points! Patience is needed at Nevada Copper

    • Copper
    • greenhydrogen
    • Electromobility
    • Mining

    Hydrogen or battery, which is better? This question is often asked. The answer is simple: both technologies will play an essential role in the energy and mobility revolution. While batteries seem to be gaining ground in the passenger car sector, hydrogen has numerous other potential applications, such as commercial vehicles and ships. Plug Power and BYD put exclamation points on incoming orders and vehicle sales. At the beginning of the value chain are commodity companies like Nevada Copper, which has now suffered a setback on its way to becoming a copper producer. However, the price slide could also represent an opportunity for investors.

    Read