Close menu




April 1st, 2021 | 05:50 CEST

NIO, Defense Metals, Rheinmetall: These shares have catch-up potential

  • RareEarths
Photo credits: pixabay.com

While Germany is facing a new lockdown rather than finally taking flight, the DAX has risen to over 15,000 points. What this shows: The market is already anticipating the post-pandemic upswing. Around the globe, societies are divided into two; those suffering from the pandemic and those that are pandemic winners. The latter sit on high reserves and are just waiting to finally spend their money again, which suggests a clear upswing. With stocks in a doze, this can lead to great opportunities.

time to read: 3 minutes | Author: Nico Popp
ISIN: US62914V1061 , CA2446331035 , DE0007030009

Table of contents:


    NIO: Even the Chinese are running out of raw materials

    Chinese electric carmaker NIO has often positively surprised the market in recent months. New models scored with their chic design and long range. In addition, as a Chinese automaker, NIO appears to be well-positioned when it comes to the supply of raw materials that are so important for electric cars. First and foremost, these include copper, nickel and rare earths. But recently, there has also been bad news for NIO. Chips for the automotive industry became scarce, forcing NIO to cut production.

    For an emerging Company that wants to grow, this is not a good signal. What's more, Chinese automakers are losing an advantage that the market has always granted them: uncomplicated and inexpensive access to raw materials. Simultaneously, established carmakers are increasingly jumping on the e-car bandwagon, so the prospects for NIO and the like are somewhat dampened. The stock lost almost 20% last month. The long-term upward trend is flattening out. Investors can still wait and see on NIO.

    Defense Metals: Rare earths in Canada

    Meanwhile, the Canadian Company Defense Metals, which is advancing one of the few promising rare earth projects in North America, wants to fight the global shortage of raw materials. The Company recently announced that it had hired experts to evaluate the economics of the Wicheeda property. The area is 1,708 hectares in size and is located about 80 kilometers from the city of Prince George in the Canadian District of British Columbia.

    Defense Metals CEO Craig Taylor said in an interview a few weeks ago that the project already received strong support from policymakers because governments have recognized how important the supply of rare earths is for future technology. "Governments in Canada and around the world are committed to ensuring a secure supply chain for rare earths, and Defense Metals is the frontrunner in Canada in terms of successful rare earth metallurgy," Taylor said.

    Smaller government grants have also already flowed to Defense Metals. In addition to renewable energy and electric mobility, the Company sees its raw materials in demand from the defense industry. "Already in the past, China has threatened to cut off companies, such as Haliburton or Lockheed Martin, from access to rare earths, showing that China has long used rare earths as a weapon. It is therefore highly likely that the US will respond by securing its own supply of rare earths. For Defense Metals, this is a great opportunity," Taylor said. The stock has since corrected after a rally in February. Anyone who wants to invest in rare earths should take a closer look at the stock now.

    Rheinmetall: Poor image, solid figures

    The figures of companies like Rheinmetall also show the fact that rare earths are in demand. The armaments Group may have an image problem, but those satisfied with the figures will see positive signals. Although things have recently been weaker at the level of the Group as a whole, the armaments division has made gains. Rheinmetall is benefiting from rising spending on armaments. Germany, in particular, must do more here to meet its obligations to NATO. As last year was dominated by the pandemic, investors are hoping for a recovery in business. The order books are already full.

    Although Rheinmetall's stock has suffered slight losses in the past 3 months, it is still on an upward trend on a one-year horizon. The stock could be attractive due to its cyclicality, which is in demand on the market. However, investors cannot expect big jumps. Those who do not categorically rule out small caps can take a closer look at Defense Metals instead. Here, defense and electromobility demand comes together and meets a still very low market capitalization of around EUR 16 million.


    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 Juliane Zielonka on February 29th, 2024 | 08:15 CET

    Defense Metals, Coinbase, Volkswagen: Critical metals for pioneering technologies

    • Mining
    • RareEarths
    • crypto
    • AI
    • Electromobility

    The demand for critical metals is increasing rapidly worldwide. From growing digitalization to the increased use of cryptocurrencies and AI, from advances in medical technology to electromobility and defense technology - all these areas rely on these critical raw materials. Defense Metals Corporation is an experienced explorer in British Columbia whose Wicheeda project is designed to provide these critical metals. Forward-thinking companies like the crypto exchange Coinbase serve many users who use rare earth metals to power their hard drives for crypto mining. Volkswagen also requires this raw material because car consumers in China have very different needs when it comes to vehicle software than those in the European market. A new CEO for the subsidiary and software company CARIAD knows exactly what needs to be done...

    Read

    Commented by André Will-Laudien on February 28th, 2024 | 08:00 CET

    E-mobility versus combustion engines: Tesla and BYD stumble, Mercedes-Benz and Globex Mining in Vogue!

    • Mining
    • Commodities
    • RareEarths
    • Electromobility

    The Tesla plant in Brandenburg is discharging polluted wastewater into the canals. Permissible limits for phosphorus and nitrogen are exceeded by up to six times. Elon Musk has not yet reacted to the accusations, as he is busy planning the expansion of his production facility. If the authorities were to take action here, the plant could also be subject to a production stop until the harmful sources are eliminated. Once again, environmental protection and the climate debate clash with the self-interest of foreign producers seemingly not on the radar of existing EU regulations. The water debate is nothing new. Since the plant in Grünheide went into operation, local communities have had to contend with a drop in the groundwater level because the plant draws an impermissible amount of water. For those finding Tesla unsympathetic due to these issues, look for other opportunities in the automotive sector!

    Read

    Commented by Stefan Feulner on February 20th, 2024 | 08:15 CET

    Rheinmetall, Almonty Industries, Applied Materials - From high to high

    • Mining
    • RareEarths
    • Tungsten
    • armaments

    The rally in chip stocks continues unabated. After ARM opened its books last week, investors bought as if there was no tomorrow. This week's figures from top dog Nvidia promise to be exciting. Will the share continue its upward trend, or will Wednesday herald an extended correction? Defense stocks are also at the forefront of the outperformers. As orders in the sector continue to rise, investors should take a look at the producers of the raw materials needed for the systems.

    Read