December 13th, 2023 | 08:00 CET
Morphosys, Power Nickel, Nvidia - A pre-Christmas gift
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"[...] 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
Morphosys AG - Surpasses annual high
The ups and downs of the biotech company continue, but it seems that 2023 will be a profitable year for shareholders. Since the beginning of the year, the Morphosys share price has risen by over 150%. A new buy signal was generated on Monday when a high for the year was reached. Once this marked resistance at EUR 32.39 has been overcome, the next short-term target is close to the EUR 40 mark.
The share price of the Martinsried-based company benefited from new results from the Phase III study with its key hopeful, pelabresib. These were presented at the annual conference of US hematologists. A combination of pelabresib and ruxolitinib, the current standard therapy for the rare, malignant bone marrow disease myelofibrosis, showed an improvement in all disease characteristics compared to a placebo combined with ruxolitinib, Morphosys announced on Monday.
The announcement of the initial disappointing results of the cancer drug from the myelofibrosis study sent the share price tumbling to around EUR 14.50 in November. Following the presentation of the pelabresib study data, the US bank JP Morgan has maintained its "Overweight" rating on the share. The target price was also reiterated at EUR 31.
Power Nickel - Step by step to the target
Despite the continued weakness of the underlying commodity - the metal nickel has lost around 45% of its value since the beginning of the year alone - the performance of the Power Nickel share is clearly in the green at 25%. The reasons for this outperformance are complex. Firstly, the Canadians own 50% of the Nisk project in Quebec with an option to earn a further 30% upon submission of a NI 43-101 technical report. Power Nickel is focusing on expanding the historic high-grade nickel-copper platinum group metal mineralization with a series of drill programs aimed at testing the original Nisk discovery zone and extending the property to adjacent potential nickel deposits. The feasibility study is scheduled for the second quarter of next year.
The Canadians have now published the NI 43-101 Mineral Resource Estimate, which includes a total of 5.43 million tons of Indicated Resources at a weighted average grade of 1.05% nickel equivalent and 1.79 million tons of Inferred Resources at a grade of 1.35% nickel equivalent, using a cut-off grade of 0.20% nickel equivalent within the open pit and 0.55% nickel equivalent for the underground workings.
In addition to Nisk, Power Nickel owns further hard assets with larger properties in the Canadian province of British Colombia and in Chile. These are intended to be contributed to the Company Consolidated Gold and Copper Inc., and management plans to issue 25% of Consolidated shares to Power Nickel shareholders.
Nividia - Was that it?
Have the shares of the world's leading provider of AI computing seen their highs for an extended period? From a bearish perspective, a double high could have formed in the USD 502.66 area. In addition, the MACD and RSI indicators have already given sell signals. A gap the size of a barn door awaits on the downside, which would only be closed at USD 316.78. On the upside, this scenario would, of course, neutralize itself with the formation of new highs.
One of the largest developers of graphics processors and chipsets for personal computers, servers and game consoles has cause for concern, and this arises from China. The dominance of US companies in AI-specialized chips is eroding in the Middle Kingdom due to the tightened US regulations on technology exports.
As "Reuters" reports, companies like Huawei and Tencent are increasingly marketing their Chinese-made processors. Huawei, primarily known as a provider of telecommunications technology and smartphones and the subject of controversy in some Western countries, is a major competitor to NVIDIA's "A100" chip with its "Ascend AI 910B".
This Company has already sold a large number of these chips to AI developers such as Baidu. With "Ernie", Baidu aims to develop a Chinese alternative to ChatGPT from OpenAI in the US. In contrast, Tencent presented its own chips "Zixiao v1" and "Zixiao v2Pro" as cheaper options to other NVIDIA products, mainly in the use of speech and image recognition and in the training of AI systems. However, Tencent emphasized that these chips are not for sale but are used exclusively in its own cloud service.
Morphosys reached a new high for the year with the publication of new study results. Power Nickel published strong data on the occasion of the NI 43-101 mineral resource estimate, while Nvidia is feeling pressure from competitors in China.
Conflict of interest
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