Close menu




January 5th, 2021 | 08:11 CET

NEL ASA, Desert Gold, Barrick Gold: Risk Check on Trendy Stocks

  • Gold
Photo credits: pixabay.com

The Corona pandemic has led to a real boom in online brokers. More and more people are managing their own money and investing in stocks from their smartphones. What is welcomed, quickly leads to disillusionment for many high-flyers: when trend stocks are bought at an exorbitant price and then sold off again in panic during price corrections. As a rule, the profit on the stock market lies in the purchase. Who enters favorably and gives a share time, can pursue its strategy entirely objectively? Neither buying panic nor the threat of a setback then weighs on the investor's psyche. Nevertheless, shares like those of hydrogen pioneer NEL are still in high demand.

time to read: 3 minutes | Author: Nico Popp
ISIN: CA25039N4084 , CA0679011084 , NO0010081235

Table of contents:


    NEL ASA: Why caution is advisable

    There is no question that the Norwegian Company is exciting. Anyone with solutions around hydrogen at the ready these days is rightly a trending stock. But what NEL's stock has been accomplishing for several months now is breathtaking for investors looking to lock in returns quietly. Although the stock has gained more than 200% over a one-year period, this development has also been accompanied by many frantic price jumps. NEL reached the EUR 2.90 mark around the turn of the year twice and came under selling pressure in this price zone.

    At the beginning of the week, rumors about a possible new large order from the Netherlands created a buying mood - the fact that profit-taking can occur after such news seems to be ignored by many investors who are gripped by the gold rush for hydrogen shares. Investors should exercise caution with the NEL share in the short term given the dynamic price development and the increased volatility.

    Desert Gold: The summer hit of 2020 is grooving again

    Desert Gold's stock shows that there are still trend stocks to buy near historic lows these days. The Company is developing a promising project in Mali, Africa's fourth-largest gold producer, which has unearthed good drill results in recent months. The property is located in the middle of a mining region where B2Gold, Barrick Gold and AngloGold Ashanti, among others, operate mines. Desert Gold says it has the most extensive contiguous land package in the region. In Desert Gold's view, the chances are good that mineralization will continue up to the already producing mines. The Company would then be a potential takeover candidate.

    In December 2020, Desert started a new drilling program that will initially cover 20,000 meters and can be expanded to double that volume if necessary. Desert Gold expects the drilling to provide closer information about its project and has already announced a continuous news flow throughout 2021. After the share reached its previous performance high in Germany of over EUR 0.23 in August 2020 and raised fresh capital in late summer, the share went into reverse and at times even sank to below EUR 0.10.

    In the course of the rising gold prices at the beginning of the year, however, first investors rediscovered the value and gave the share a good success. Given the already financed drilling program and the general conditions around gold, the share could be a promising latecomer - especially in the mirror of hype shares like NEL and Co.

    Barrick Gold: Takeover congestion weighs on established gold producers

    However, investors should not disregard the fact that Desert Gold, with a market capitalization of around EUR 16 million, is anything but a long-established Company and must be considered speculative. Therefore, those who like it more conservative can also take a closer look at the shares of the largest gold producer Barrick Gold. While investors in Desert Gold focus on two properties under development (the Company has optioned one project), Barrick Gold offers a colorful bouquet of gold mines worldwide. Barrick therefore benefits directly from rising gold prices. Nevertheless, the share price has only risen by around 14% over the past year.

    Although the gold giants' figures have improved in recent months and the gold price has brought Barrick new attention, the Company is suffering from an investment backlog. While mines are pulling gold out of the ground daily, the acquisition business has come to a virtual standstill in the wake of the pandemic. However, major producers are relying on replacing reserves and looking for new potential projects. This dilemma also weighs on the share price, as Barrick Gold has been living off its substance for some time. Moreover, buying new projects after the end of the pandemic could be expensive - other companies in the sector are also on the lookout for promising projects. Producer Kinross Gold already announced in the fall that these could well be in West Africa. Desert Gold may then join the big players.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    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



    Related comments:

    Commented by André Will-Laudien on October 22nd, 2025 | 07:35 CEST

    Gold and silver – New record highs! Keep an eye on Barrick, Agnico Eagle, Desert Gold, and First Majestic!

    • Mining
    • Gold
    • Silver
    • Commodities

    Silver prices broke through the USD 53 mark for the first time at the beginning of the week, and gold is attempting to reach the USD 4,300 mark. Precious metal enthusiasts have been anticipating these moves for a long time, but traders on the futures exchanges clearly have not. In addition to extreme physical scarcity, the exploding prices are also attributed to heavy short squeezes. The physical silver market is under tremendous pressure as the availability of real metal to hedge the numerous futures transactions is severely limited. This imbalance is causing erratic market reactions and driving the spot price into an almost exponential sell-off. The current rally in precious metals is driven by geopolitical uncertainty, industrial demand factors, and the search for safe investments. In times of excessive government debt, the weakness of the US dollar is now also weighing on the market. Which companies should investors keep a close eye on now?

    Read

    Commented by Carsten Mainitz on October 21st, 2025 | 07:40 CEST

    Power Metallic Mines, RENK, BYD – An explosive combination! And the winners are?

    • Mining
    • Copper
    • Nickel
    • Gold
    • CriticalMetals
    • Electromobility
    • Defense

    Many topics are dominating the headlines. Peace in Gaza – and soon in Ukraine? This prospect initially put a significant damper on defense stocks – but only temporarily. After just a few days of correction, prices are already rising again. Gold at an all-time high is another major topic being covered in the media. Meanwhile, the geopolitical shifts we were reluctant to acknowledge for far too long are now catching up with many companies: China is cutting the world off from critical raw materials and rare earths. Read here to find out how investors can identify promising high-potential opportunities in this constellation.

    Read

    Commented by André Will-Laudien on October 21st, 2025 | 07:35 CEST

    Gold USD 4,300 and Silver USD 53 – Buying frenzy at Silver North, First Majestic, Nel ASA, and JinkoSolar

    • Mining
    • Silver
    • Gold
    • renewableenergies
    • Solar
    • Energy

    Silver has been shorted by many investment banks for several years because sufficient supply was available from Mexico and other producing countries. The tide has turned. Over the past 12 months, the precious metal has caught up with its big brother gold, gaining 54%. There are several reasons for the scarcity-driven rally: there are only around 250 active silver mines worldwide, compared to around 1,400 gold mines. In addition, silver has massively expanded its importance as an industrial metal: it is indispensable in high-tech, e-mobility, defense, and medical technology. As a result, less and less physical silver is available to investors, while inventories on the futures markets continue to decline. Now is the time to take a position in silver. Alongside industry giants such as First Majestic, Silver North is among the most promising beneficiaries of the new silver boom.

    Read