Close menu




January 20th, 2021 | 09:58 CET

Lenovo, Triumph Gold, K+S: Are the stragglers jumping now?

  • Gold
Photo credits: pixabay.com

Looking at the stock market today, one sees the major indexes at record highs and stocks, like Tesla and Ballard Power, far from anything that can be reasoned with. The current situation is a deterrent to many investors. But that's a mistake. Instead of staying completely out of the market, it's worth taking a look at stragglers. These still exist today. Many of these stragglers are indirectly benefiting from strong major trends and could be on the verge of a revaluation. Three of these representatives are Lenovo, Triumph Gold and even K+S.

time to read: 3 minutes | Author: Nico Popp
ISIN: CA8968121043 , HK0992009065 , DE000KSAG888

Table of contents:


    Bill Guy, Chairman, Theta Gold Mines Limited
    "[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited

    Full interview

     

    Lenovo: What's next for the home office stock?

    PC manufacturer Lenovo showed that the pandemic did not affect all industries equally and impressed the market with a record quarter between July and September. The reason is probably also because consumers still bought a lot of equipment for the home office in 2020, and Lenovo was well-positioned for it with its products. At the same time, the Company streamlined itself in 2020 and worked on its cost structure, among other things. 2020 has changed a lot for computer manufacturers. While PC systems and accessories were relatively slow sellers in the years before, sales developed rapidly in 2020. Especially with peripherals such as webcams, and it is still noticeable today that margins have even increased. Everyone needs PC accessories, and companies have correspondingly higher pricing power.

    In contrast, things went less well for Lenovo in 2020 in the sectors of cloud and smartphones. Hardly any customers today think of smartphones when they hear the brand "Lenovo." The ship seems to have sailed, and Samsung and even Xiaomi are uncatchably ahead in the Android phone segment. However, this is not a disaster for Lenovo shareholders - Lenovo is too strongly positioned in the other hardware segments. Another special price boost for Lenovo is that business in China is solid with more than 20% of sales. Lenovo also generates more than a fifth of its sales in the rest of the Asia-Pacific region. Coupled with the low valuation of a P/E ratio of around 12, these are good conditions. The stock has already made significant gains on a one-month horizon and could stand a setback. Nevertheless, the fundamental situation is promising.

    Triumph Gold: Financed gold prospector with Newmont as a shareholder

    Triumph Gold is a stock that has not yet put together a brilliant price rally in recent weeks. The Company has properties in the Yukon in Canada and is prospecting for gold there. The Canadian Freegold Mountain project, in particular, is considered promising. In 2020, the Company impressed with outstanding drill results, which caused the share price to rise rapidly: Between March and August 2020 alone, the share price more than tripled. In the meantime, however, the share price has corrected more than 50% again.

    Since Triumph's projects are promising, the Company has a good name in the industry - after all, mining giant Newmont has a 12.8% stake in Triumph - and the share price has come back, investors with an affinity for gold can make a note of the value. In recent days, the price repeatedly jumped for a short time and then calmed down again. Triumph Gold is sufficiently financed for the upcoming drilling program and could explain why the value has currently bottomed out.

    K+S: Is history repeating itself?

    A similarly explosive situation as with Triumph Gold is currently evident with the German standard stock K+S. Some time ago, the Company divested itself of its US business, which had become a burden over the years. At the same time, potash prices rose. During this development, the share has freed itself in the long term - at least from a chart perspective. If you look at the share price performance over one year, the former crisis share only shows a small loss. If it manages to rise above the EUR 10 mark, there will soon be room for dynamic development. Price drivers could be familiar factors such as demographics or increasing prices for agricultural raw materials.

    During the last commodity boom in 2008, K+S also benefited from rising prices for agricultural commodities. In the end, the share even stormed the DAX. Although K+S is still far away from this today, the value could soon be on the watch lists of opportunity-oriented traders, given its catch-up potential. Whether K+S or Lenovo: There are still moderately valued blue chips with potential. With second-line stocks, such as the gold developer Triumph Gold, the opportunity appears favorable in the mirror of the price trend during the past year. Those who shy away from investments in hot trend stocks will currently find a favorable risk-reward profile in stragglers.


    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

    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 June 2nd, 2023 | 08:00 CEST

    ThyssenKrupp, Orestone Mining, Nevada Copper - Optimistic about the future

    • Mining
    • Copper
    • Gold
    • Silver

    Overall, copper is an indispensable part of the green transformation due to its excellent electrical conductivity, corrosion resistance and reliability. It enables the efficient use of renewable energies, promotes electromobility and supports sustainable infrastructure development. Due to recession fears, the base price corrected strongly in recent months. In the long term, copper should make a renewed attempt to reach new highs due to high demand and too little supply.

    Read

    Commented by Nico Popp on June 1st, 2023 | 07:30 CEST

    The breaking point for the dollar - All new for gold? Barrick Gold, PayPal, Tocvan Ventures

    • Mining
    • Gold

    'Dr. Doom' Nouriel Roubini not only predicted the world financial crisis. The Stern School of Business economist in New York also heralded the Corona Shock. Now Roubini predicts the end of the dollar's supremacy. Here is what that could mean and which companies might even have opportunities as a result.

    Read

    Commented by Armin Schulz on May 30th, 2023 | 10:00 CEST

    Barrick Gold, Desert Gold, Deutsche Bank - What happens after the US debt ceiling is lifted?

    • Mining
    • Gold
    • Copper
    • Banking
    • Investments

    In the US, the Democrats and Republicans have agreed on a compromise in the debt dispute. This means that the US can take out more loans, which will ultimately result in an increasing money supply. This could further fuel inflation, while on the other hand, it could boost the gold price. In recent months, the gold price has soared due to the turbulence in the banking sector and was able to mark a new high. Nevertheless, this is remarkable because the FED had raised interest rates significantly, which would typically have tended to argue for a falling gold price. If interest rates do not rise further or even fall, this would be another positive signal for gold. We, therefore, look at 2 gold companies and analyze Deutsche Bank.

    Read