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February 11th, 2021 | 12:21 CET

Nikola, Nevada Copper, Nel ASA - breakout as expected!

  • Investments
Photo credits: Nevada Copper Corp.

It is done. The industrial metal copper has reached a multi-year high, from the development, this was already foreseeable. If you still think that investments in commodities are boring, be my guest. However, you will see how much high-tech industries such as electromobility, hydrogen or blockchain are dependent on various raw materials by the exploding prices in the next few years. Be part of it now!

time to read: 3 minutes | Author: Stefan Feulner
ISIN: CA64128F1099 , US6541101050 , NO0010081235

Table of contents:


    Threatened by scarcity

    The decision of politicians and industry to focus on electromobility in the future is putting enormous strain on the raw material supply chain. The carrier metal copper is also affected. We encounter copper in many areas of life - in information and communications technology, electrical engineering and renewable energies. It is not without reason that the price of copper is rising steadily. If professional market observers are to be believed, the metal's price is likely to multiply in the coming years. By investing in shares of copper producers, one can participate in the current development.

    Nevada Copper is the first new US copper producer in a decade. The Canadians have been in the market since 2007, exploring for metals near the corporate headquarters of Tesla and Google in the US state of Nevada at their own Pumpkin Hollow copper project. Pumpkin Hollow has significant reserves and resources, including copper, gold and silver. The Company's two fully-permitted projects include the high-grade deep mine and processing plant, now in production, and a large open-pit project that has progressed toward feasibility.

    Well structured

    Over the past year, experienced management has been put in place and the debt problem that Nevada Copper had carried for years has eased. In January, a significantly oversubscribed CAD 33.0 million private placement was completed. The capital raised is to repay outstanding debt and construct or expand the Company's Pumpkin Hollow underground mining project. The Company is currently valued at CAD 260 million. Assuming copper prices continue to rise, the Nevada Copper share offers good opportunities for price gains as an investment.

    Catastrophic development

    The second half of 2020 was one to forget for Nikola, a truck manufacturer specializing in hydrogen technology. After the successful IPO on June 4, 2020, with an opening price of USD 35, it abruptly went within weeks towards the all-time high of USD 93.99. Comparisons with competitor Tesla had Nikola almost approaching the stock market valuation of General Motors. Through the IPO, the startup hoped to raise more funds for the infrastructure expansion of hydrogen fueling stations, which were to be built with the help of Norwegian hydrogen Company Nel ASA. In addition, the Company hoped to accelerate the production of its trucks.

    The positive news flow continued in September when the planned entry of General Motors and massive follow-up orders were to take place. At first, the Nikola share marched to USD 54, before allegations of fraud by "Hindenburg Research" made the rounds. The share price subsequently collapsed to USD 37. The accusations, however, are enormous. Allegedly, Nikola lifted a truck model onto a mountain and then let it roll down into the valley.

    It brightens

    The consequences were logical. General Motors withdrew from the planned collaboration. Likewise, the planned order for Nel ASA was gone. And CEO Milton had to vacate his chair. Currently, some calm has returned. JP Morgan analyst Paul Coster published a positive note on the stock at the end of the year. Coster predicted sentiment would improve in 2021 "when Nikola unveils working trucks and other evidence that its technology works." The analyst, who expected Nikola's electric trucks to be on the market by the end of this year, reduced his price target on Nikola to USD 35 from USD 40 but maintained his "outperform" rating.

    In addition, Wedbush analyst Dan Ives raised his rating on the stock to "hold" from "sell" on February 1. The reason lies in the optimism that Democrats in Washington will make policies in favor of Nikola. The US Department of Energy announced it would fund research into hydrogen fuel cell technology, an area that is central to the Company's growth. News that President Joe Biden plans to replace the US national car fleet with electric vehicles is also fueling the industry.

    Share interesting and speculative

    Last week, Nikola was short-listed as the next short-squeeze candidate after GameStop. What can speak for a short squeeze is indeed the very high short ratio of more than 40%. At the moment, the stock market valuation is USD 8.8 million. The price is currently at USD 22.90 in an interesting formation. A breakout above the resistance at USD 25 would result in the next price target at USD 37.95. A breach above this previous high would open the way chart-wise to the 2020 all-time high at USD 93.99. We want to point out that an investment in Nikola is very speculative.


    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.

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    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.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



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