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January 7th, 2022 | 13:53 CET

Lufthansa, Prospect Ridge Resources, S&T - Profits beckon here

  • Gold
Photo credits: pixabay.com

2022 is beginning like 2021 - Corona is still the number one topic. Despite the pandemic, one can draw hope from the past year because, despite all adversities, the shares have, in part, made very decent gains. Now, with Omicron, endemicity seems possible. The virus is more contagious, but the course is milder than the previous variants. Infection could bring about the herd immunity that has long been longed for. In addition to Corona, however, one must also keep an eye on inflation. It has been taking hold since mid-2021 and will continue to occupy us in 2022. The question on all investors' minds is: where do the gains beckon in the coming year? Today, we highlight three possible winners.

time to read: 4 minutes | Author: Armin Schulz
ISIN: LUFTHANSA AG VNA O.N. | DE0008232125 , Prospect Ridge Resources Corp. | CA74358Q1054 , S+T AG (Z.REG.MK.Z.)O.N. | AT0000A0E9W5

Table of contents:


    Lufthansa - Hope for the end of the pandemic

    If Omicron succeeds in heralding the end of the pandemic, we can expect air traffic to return to normal from the summer onwards. That would significantly improve Lufthansa's prospects. The German government recently eased entry restrictions for Great Britain and eight other countries. The possibility of a reduction in quarantine times will also benefit the airlines.

    Transport flights and business travel, in particular, should pick up in the short term, provided the situation eases further. However, there was also negative news. It became known at the end of December 2021 that Lufthansa would be forced to operate 18,000 empty flights due to EU regulations. If the Group did not carry out these flights for climate protection reasons, it would have to forego take-off and landing rights in the future. Attempts to persuade the EU Commission to change its mind failed.

    Ultimately, however, hope for an end to the pandemic prevails, and the Lufthansa share has performed strongly so far this year. Since the turn of the year, the share price has risen from EUR 6.18 to EUR 7.20 at its peak. The share is currently trading at EUR 6.75 and has formed a small upward trend. On January 5, the downward trend was broken. Recently, several analysts have raised their price targets for Lufthansa. However, interested investors should wait for a setback.

    Prospect Ridge Resources - 3 interesting projects at once

    Gold has always been popular as an inflation hedge. The Canadian commodity explorer Prospect Ridge Resources (PRR) already has gold deposits but has only been listed on the Canadian Securities Exchange (CSE) since the end of May. Since then, a lot has already happened. On August 27, the Holy Grail project was acquired from Loan Wolf, located in British Columbia (BC). The area is 70,000 hectares and is situated on the edge of BC's Golden Triangle. Exploration drilling from 2020 indicated gold grades of 893, 976 and 984 g/t gold over an area of 3.5 km by 6.5 km.

    In-house exploration collected 500 rock samples, 850 soil samples and 40m of channel samples. Up to 117 g/t gold and 581 g/t silver were found, as well as copper, lead and zinc. Holy Grail can be considered the flagship of the Company. On November 9, the Company announced the acquisition of the Knauss Creek property, where the Dorreen Mine produced an average of 57 g/t gold and 205 g/t silver in 1924. The property is 3,152 hectares in size and is also located in BC. In addition to precious metals, copper, lead and zinc were also mined here. In addition to the historic mine, 5 other zones of visible gold mineral occurrences have been identified with little testing. Initial results from December look promising.

    In addition, the Galinee project in Quebec is also on the exploration schedule this year. The area consists of 15 contiguous claims totaling 839 hectares. The Company has raised the money for the upcoming exploration in private placements with a total of CAD 8.5 million raised. The share made its stock market debut at CAD 0.20 and then shot up to CAD 2.75. Since then, the stock has consolidated and is currently trading at just CAD 0.65, well below the CAD 1.00 price of the last capital increase. If the results continue to be positive, the share could quickly rise again.

    S&T - Waiting for the report from Deloitte

    With Corona, it has become clear to even the last doubters that digitalization must proceed more quickly. IT companies such as S&T should benefit from this. However, an analysis by Viceroy Research in mid-December 2021 sent the share price on a downward slide. It mainly criticized acquisitions from the IoT sector and the unclear corporate structure. This is the second time after 2020 that the Company has fallen victim to a short attack.

    Following Viceroy's report, the share fell from EUR 19.30 to EUR 12.36. An initial statement by the Company announcing that it would address the criticisms largely fizzled out. The Company's chief executive Hannes Niederhauser reiterated that S&T AG's operating performance is within the range of the current guidance for 2021. Meanwhile, Deloitte has been commissioned to conduct an independent audit.

    In addition, Michael Riegert was appointed as the new Chief Operation Officer for IoT Solutions Europe on January 5. The Company's structure is also to become more transparent. The approach pleases analysts, such as Alster Research, who see the price target at EUR 31. Hauck & Aufhäuser has issued the same price target in its BUY recommendation. The share is currently trading at EUR 14.53 and thus has more than 100% potential. The prerequisite should be a corresponding report from Deloitte.


    All three companies have significant upside potential. In the case of Lufthansa, Corona plays an important role. If the situation normalizes, the share will also take off again. Prospect Ridge Resources has promising projects, some of which have very high gold and silver grades. One can be curious about upcoming results. S&T is trying to smooth the waters. So far, this has only been partially successful. Things will remain bumpy until the Deloitte audit is completed. If a positive report comes in for the Company, the share has clear potential.


    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.

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    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



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