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June 1st, 2022 | 10:01 CEST

Markets running now: TUI, MAS Gold, NEL

  • Gold
  • travel
Photo credits: pixabay.com

Inflation, economic slump...but wait! Things are not quite that bad for the markets! In the US, inflation is losing momentum. At the same time, consumers remain in a buying mood and wages are at least halfway keeping pace with energy prices. The market experts at Deutsche Bank believe that the environment for growth stocks is becoming more positive again. Reason enough to take a closer look at three shares.

time to read: 3 minutes | Author: Nico Popp
ISIN: TUI AG NA O.N. | DE000TUAG000 , MAS Gold Corp. | CA57457A1057 , NEL ASA NK-_20 | NO0010081235

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

     

    TUI: The desire to travel is returning

    Strictly speaking, the share of tour operator TUI is not a growth stock - after all, TUI is Europe's largest tour operator with billions in sales. But because of government aid during the pandemic, the share price has come under pressure. The share seems cheap. That has also attracted speculators and made the value volatile. But now it appears that the business could provide a tailwind for the share price: Industry experts expect a good summer travel business. According to relevant tourism sector media, activity should be well above pre-pandemic summer 2019 levels.

    But how much will an old industry heavyweight like TUI benefit? When it comes to travel, many customers are much more flexible today than they were years ago. Package tours have often become obsolete or are "last minute" on relevant portals or via corresponding newsletters. Anyone who wants to invest in tourism would be better off looking at competitors such as booking.com. Nevertheless, the TUI share is good for short recovery movements - but the trees are not growing into the sky for TUI this spring.

    MAS Gold: This is where management invests

    While the market has a clear opinion around TUI, MAS Gold's stock is a comparatively blank slate outside of Canada. The Company, led by serial founder and commodities professional Jim Engdahl, operates in the La Ronge Greenstone belt in the Canadian district of Saskatchewan. Here, the Company is advancing the Greywacke, North Lake, Point and Preview SW Deposit properties. The Company is pursuing a hub-and-spoke model with the projects: because of their geographic proximity, the properties complement each other and can share infrastructure in the future.

    Just recently, management and people close to the Company went ahead with financing and underwrote the majority of the capital raise themselves. "I am very pleased that we were able to close the first tranche of financing above the minimum expected amount, largely due to the investment of the Company's management, insiders and board members who underwrote the majority of this tranche. Current markets are extremely bearish and the closing of this first tranche demonstrates strong shareholder support for the Company's strategies to achieve its gold resource expansion objectives. Further results from our winter drilling program are expected soon, which we believe will also assist the Company in achieving its exploration and development objectives," Engdahl commented a few weeks ago. Market sentiment has since brightened. However, MAS Gold's stock hasn't gotten much more expensive yet. In the coming days or weeks, MAS Gold plans to close a second financing tranche. After that, the share could become interesting again.

    NEL: Hydrogen - more than trading?

    The share of NEL is currently also interesting - at least for traders. The hydrogen pioneer from Norway is well positioned worldwide. But more and more traditional industrial groups are pushing into the hydrogen business. There is not much left of the hype of more than a year ago. But NEL is moving sideways quite reliably between EUR 1.20 and EUR 1.60. Its image as a gambler's stock ensures that many short-term traders still have the share on their radar and that price dynamics reinforce themselves. However, strategic investors with a long-term view should consider an investment carefully.


    Those looking for stocks that are on a roll should pay attention to the starting conditions, especially in uncertain market phases. Anyone who buys at a high price always buys a certain amount of downside. For example, NEL's stock is still considered expensive by many investors even after the end of its bull market. Given the backdrop of digital competition, TUI could also be considered expensive in the long term. MAS Gold, on the other hand, is a different story. The share price is close to its lows, and the management itself has just invested in its own company. Since the gold sector is anything but "hyped", the stock could soon become interesting for anticyclical long-term investors.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    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



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