More than 30% with Plug Power, Siemens Energy, and Globex Mining! What is next?

Globex Mining: Diversified investment in commodities

Those looking to benefit from the commodities boom with reduced risk should consider the share of Globex Mining. The mining incubator from Canada has bought up numerous exploration projects or abandoned mines in recent years. The portfolio now comprises 240 projects ranging from precious metals such as gold and silver to rare earths and lithium, the raw material for electromobility. Globex even holds a license for a silver, copper and zinc project in Germany. Important here: Globex does not take over the costly exploration of the projects but makes them available to other companies in return for cash, share options and subsequent royalty payments. This minimizes the Company's own risk and, at the same time, generates a steady cash flow. Incidentally, the Company is debt-free.

The share is also listed in Germany and has gained around 30% in the current year. At CAD 0.95, it looks exciting on the chart and could tackle the all-time high of CAD 1.45 in the coming year. The market capitalization of CAD 52 million is still not high, is underpinned by a cash position of around CAD 25 million, and the news flow is positive. The next deal was announced at the end of November. Orford Mining Corp. extended its option on Globex's Joutel Eagle property in Quebec, Canada. In return, Globex will receive a payment of CAD 125,000 and 2,500,000 Orford shares. Orford has already completed 3,253 meters of drilling on the option property, intersecting wide intervals of significant gold values. Orford stated: "Our efforts will be focused on identifying additional gold and copper mineralization on the Joutel Eagle property in the coming year." As such, Globex investors can look forward to continued strong news flow in the coming year.

Plug Power: Share about to triple?

Investors in Plug Power have been waiting for positive news flow for some time. The hydrogen specialist's shares are among the losers of the year, having fallen by over 60%, and not without good reason. High losses in the operating business, subdued incoming orders and the threat of a capital increase caused the crash. Last week, however, the share price rose significantly. The reason was a very optimistic study. Cowen not only recommended the Plug Power share as a "Buy" but also gave it an astonishing target price. The analysts have confidence that the share price can reach USD 15. The share would, therefore, have to more than triple from its current level. The price target is well above the analyst average of USD 8.533 (source marketscreener.com).

However, investors should not be blinded by the price jump of over 30% in recent trading days. There was no operational news, and the issue of financing requirements, until reaching break-even, still needs to be resolved.

Siemens Energy: Goldman Sachs and S&P reassure

At least the issue of financing requirements has been taken off Siemens Energy's plate for the time being with the guarantee from the German government. The share recovered from its October low of below EUR 7 and was quoted at EUR 11.38 yesterday. And Goldman Sachs sees further upside potential. The analysts recommend buying the DAX share with a target price of EUR 18.60. The analysts are optimistic about the fact that rating agency Standard & Poor's has withdrawn its "Credit Watch Negative" rating. This would alleviate fears of financial difficulties, and a necessary short-term capital increase is now less likely.

S&P continues to rate Siemens Energy at BBB with a negative outlook. The planned asset sales of EUR 2.5 billion would largely offset the longer-than-expected restructuring of the wind energy subsidiary Gamesa. The measures would make it clear that the group has substance and options to raise new cash without significantly weakening its earnings and cash flow base. This would support its creditworthiness.

Even after the share price jumps, the problems at Siemens Energy and Plug Power are far from over. In the case of Siemens Energy, the impact of Gamesa cannot yet be finally assessed. At least the Group also has profitable business areas. Plug Power lacks a sustainably profitable business model, although the future prospects for hydrogen technology are excellent. Globex Mining has impressed with a large number of positive projects in the current year. The share has also proven suitable for profiting from the commodities boom with reduced risk.