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Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


17. February 2021 | 12:19 CET

NEL, Saturn Oil & Gas, K+S: Who benefits from inflation?

  • Investments
Photo credits: pixabay.com

No less a figure than Bundesbank President Jens Weidmann believes that more than 3% inflation is possible in 2021. For savers, this is terrible news given low interest rates and poor financial products. For active investors, rising inflation can work out to be an opportunity. That is if they invest in securities that profit from inflation. Here's a look at three promising stocks.

time to read: 3 minutes by Nico Popp


 

Author

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


NEL: A good choice amid the hype

The shares of Norwegian hydrogen experts NEL have been a hot potato for months: On a one-year horizon, the stock is up a whopping 160%. But recently, the value has weakened. What is the reason for this? After the hype around hydrogen had reached the last speculation-oriented investor in January, the share went into consolidation. The wait-and-see attitude is further reinforced by the fact that NEL will report figures this Thursday. After its performance so far, the Company may well fail to generate any euphoria at all.

On the stock market, euphoria usually arises whenever the market is looking far into the future, and the sky is full of violins. A dull quarterly report often only ensures that investors are brought back down to earth. It is not for nothing that most analysts currently see NEL as a stock to be held. But that can change again quickly: as soon as the markets pick up speed again, familiar hot stocks like NEL automatically attract more attention. Rising inflation rates also favor inflows of funds into speculative future technology. However, given its already high valuation, NEL is not the preferred inflation pick for investors.

Saturn Oil & Gas: Nimble oil producer on expansion course

Whenever economists take a detailed look at inflation and analyze which prices drive up the cost of living, energy prices are among the most significant price drivers. Both at the gas pump and for heating, prices rise year after year. Now that the Corona pandemic seems to be over on the stock market, and the rise in prices has even got the Bundesbank president talking about inflation, oil producers could be an interesting alternative. The Canadian Company Saturn Oil & Gas has a long track record behind it. Even adverse oil prices did not harm the Company last year. The reason: the management, which has now been working for the Company for several years, hedged half its oil production at prices of CAD 65. In retrospect, a smart move. While oil prices are reaching the hedge level these days, Saturn's agreement is expiring.

At the same time, with the onset of the crisis, the Company announced its intention to focus on acquisitions in the future and to jump-start its previously successful organic growth. Saturn Oil & Gas has not yet announced a closing. At the end of 2020, however, the prominent addition of Jean-Pierre Colin as a strategy consultant caused a stir. Colin has been involved in numerous acquisitions in the commodities sector in the past and is now involved in cleantech. Saturn is also fully committed to sustainability and aims to convince investors with its ESG concept.

Saturn Oil & Gas is a small oil producer with a clear growth strategy and a promising focus on ESG. While the Company cannot be compared to large producers and is disproportionately more speculative, management has now proven over the years that it can also master challenging situations. Since oil traditionally rises in an inflationary environment, Saturn Oil & Gas shares could be a dynamic addition. The share price has recently gained some momentum, and prices above the CAD 0.16 mark could be a starting signal for the share.

K+S: Traditionally, an inflation winner

The K+S share also experienced a jump-start at the end of last year. The fertilizer producer sold its weakening US business and the share price rose dynamically. Since then, however, the share has been in "dull mode." Most recently, the fertilizer producer stalked towards the EUR 10 mark.

In the long term, K+S benefits from demographic factors and the inflation of agricultural raw materials - the more yields the fields have to produce, the more important adequate fertilization is. The share was already considered a safe bank in an inflationary environment more than ten years ago. A look at the long-term chart indicates where the share could be headed.

While K+S has not yet been kissed awake and traditionally has a relatively sluggish business, new developments in small caps, such as Saturn Oil & Gas, usually have a more immediate impact. As a hedge against inflation in the portfolio, the Canadian small-cap with its convincing track record can play a crucial role in the portfolio even for smaller amounts.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

18. June 2021 | 15:10 CET | by Carsten Mainitz

MorphoSys, Biogen, Sierra Growth - What is next?

  • Investments

Pharmaceutical stocks are a bit like that: Giants like Johnson & Johnson or Novartis have an extensive product portfolio and can cushion failures of individual products quite well. It is often a matter of life and death for smaller, specialized companies with every development. Just yesterday, this could be observed in the CureVac share after its Corona vaccine candidate only achieved an efficacy of 47% in the clinical 2b/3 phase. Within a very short time, it disintegrated the stock price. Meanwhile, biotech pioneer Biogen surprised with an unjustified share price rally, which, however, could come to an abrupt end after a new setback. The situation is different for MorphoSys. Its planned acquisition of Constellation Pharmaceuticals initially weighed heavily on the share price, but it holds exciting potential. And the Canadian mining Company Sierra Growth is operating in a completely different environment; however, it has a top opportunity to offer in the current inflationary environment and should not go unmentioned.

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18. June 2021 | 09:56 CET | by Nico Popp

Adler Modemärkte, Steinhoff, Osino Resources: Which penny stocks have substance?

  • Investments

Penny stocks often have something disreputable about them - at least in Germany. As soon as a share is quoted at less than EUR 1 in Germany, it is considered to be at risk of insolvency. The reason for this is that the minimum nominal value of German stock corporations is EUR 1. Abroad, however, things are quite different: In Australia, it is not uncommon for shares to trade even below one cent. For investors who are used to this, it is anything but disreputable. In concrete terms, it all depends on the companies themselves anyway. We profile three companies that are either penny stocks or were, not long ago.

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17. June 2021 | 13:52 CET | by Nico Popp

Daimler, Mineworx Technologies, BASF: Investing in the mobility revolution

  • Investments

The world keeps spinning - faster and faster, it feels. New technology is causing certain industries to rethink. Electromobility is one such catalyst: mining companies and companies from the chemical industry and other suppliers must prepare themselves because soon, most cars will run on batteries. There are great opportunities here - for carmakers who are on their toes and for resourceful experts in the field of recycling.

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