September 28th, 2021 | 13:31 CEST
Nel, JinkoSolar, Saturn Oil + Gas: It looks good!
Table of contents:
"[...] 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
Saturn Oil & Gas - Oil: bull market meets P/E 1
Eric Nuttall is convinced oil is in a multi-year bull market. He is a senior partner at Canadian asset manager Ninepoint Partners and sees a rosy future for oil stocks. This is because the fear that demand has peaked - for example, due to the promotion of electric mobility - would, in reality, lead to the world heading for an oil shortage, says the commodities expert in an interview with Bloomberg. Globally, too little would be invested in the exploration of new oil fields. If this is true, the champagne corks should pop at Saturn Oil & Gas - and also at its shareholders.
The Canadian oil producer has just massively increased its oil reserves.
Thanks to the acquisition of the Oxbow oil field - on outstandingly favorable terms - the Company has been able to increase its production by 2,000% this year. Just recently, an independent appraiser confirmed reserves of 43.3 million barrels of oil equivalent (BOE). That translates to a value of CAD 435.7 million or CAD 0.87 per share. Saturn had acquired the assets in June 2021 for a net CAD 76.8 million. The price was agreed last year when the oil price was down due to the Corona pandemic. Now not only the oil should bubble up, but also the earnings. Saturn Oil & Gas aims to generate a net operating income of around CAD 70 million annually. Measured against the current share price, the stock is thus valued at a price-earnings ratio of just over 1. Too little, say the analysts of the German GBC Research. Their target price is CAD 0.46. Saturn shares are currently trading at around CAD 0.18.
Nel - New order creates a good mood
Nel shareholders finally had reason to rejoice again last week. On the one hand, the rise in the share price gave hope for a turnaround. On the other hand, there were good reasons for the increase; the Norwegian hydrogen specialist reported an order again after a long time. The Company received an order from the British utility SGN to deliver a 5 MW alkaline electrolyzer. SGN is thus planning the first 100% hydrogen-based home heating system on the east coast of Scotland to supply up to 900 households. The contract includes installation and commissioning, as well as longer-term service and maintenance. The electrolyzer will produce up to 2,093 kg of green hydrogen per day. The system will be powered by a nearby offshore wind turbine and grid electricity. This announcement was well received, and not just by investors. Barclays raised its price target for Nel shares to 25 Norwegian kroner and recommended "overweight."
JinkoSolar - New momentum from IPO of the subsidiary?
Not only the federal election could bring new momentum for the shares of JinkoSolar. The Chinese manufacturer of solar modules and cells is preparing the IPO of its subsidiary Jiangxi Jinko. While this has been known for some time, it is now becoming concrete. The IPO is to take place on the Sci-Tech Innovation Board of the Shanghai Stock Exchange (SSE). In addition, the first figures of the subsidiary have been published. According to these, Jiangxi Jinko is expected to generate sales of between 23.6 billion and 23.8 billion yuan in the first nine months of the current year. In the process, the net profit of the JinkoSolar subsidiary is expected to be between 625 million and 655 million yuan. Even after the IPO, JinkoSolar intends to retain a majority stake in Jiangxi Jinko.
Investors seem to have a renewed appetite for renewable energy and electric mobility-related stocks like JinkoSolar and Nel. It is likely that this will become greater as a result of the outcome of the federal election. For many, the surprise could be great if oil suddenly becomes scarcer due to less exploration. Saturn Oil & Gas is prepared for this and is very attractively valued.
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.
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.