Close menu




December 5th, 2023 | 06:40 CET

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

  • Mining
  • Commodities
  • renewableenergies
  • Energy
  • fuelcell
Photo credits: PNE AG

Is the Plug Power share about to triple? Despite being one of the disappointments of 2023 along with Siemens Energy, both shares have risen in recent days. And analysts see further upside potential. The price target for the hydrogen specialist, in particular, is surprising. On the other hand, Globex Mining is performing well operationally throughout 2023. The shares of the mining incubator from North America have gained over 30% in value this year, outperforming commodity giants such as Barrick Gold. The Canadians' recent transaction shows that the business model has potential and is appealing to investors.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0 , GLOBEX MINING ENTPRS INC. | CA3799005093

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    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.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided 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 February 23rd, 2024 | 07:00 CET

    Will GreenTech soon be back in vogue? Nel ASA, Klimat X, Nordex, and Plug Power are under analyst scrutiny!

    • Sustainability
    • GreenTech
    • renewableenergies
    • Hydrogen

    Despite new record highs in global stock markets, the GreenTech sector has yet to show any gains. The hydrogen sector, in particular, which was hyped in 2020/21, has been struggling for the past three years. With share price losses of 70 to 90%, investors are hopeful that a bottom could be reached in the foreseeable future. We analyze whether this could already be the case and present an alternative in the form of Klimat X. Business is running smoothly here, and the CO2 savings are even certified.

    Read

    Commented by Armin Schulz on February 21st, 2024 | 07:30 CET

    Barrick Gold, Desert Gold, Renk - Golden times everywhere?

    • Mining
    • Gold
    • Defense

    The world is full of economic uncertainty and geopolitical tensions. These are ideal conditions for gold, which is still considered a safe haven. There are now several factors that point to a sustained upswing in gold prices. One factor is the increased involvement of central banks, which are increasing their reserves to an extent not seen for decades. Another factor is the discussion within the BRICS nations about introducing a new currency backed by gold as a counterweight to the dominant US dollar. Therefore, today, we look at two gold companies and shed light on Renk, a representative of the defense industry, which is also experiencing golden times.

    Read

    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.

    Read