March 18th, 2021 | 08:42 CET
Nokia, Square, Triumph Gold - The money is on the street!
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"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Nokia - Focus on 5G and digitalization
There was a fabulous rally in Nokia shares at the beginning of the year due to social media campaigns, which unfortunately was not backed up by operational figures. While that is certainly the case with Tesla and Plug Power, only Nokia saw a prompt sell-off of almost 50% from EUR 5.9 to EUR 3.10. Recently, the price was able to stabilize again because the reported figures were at least in line with positive expectations, and the outlook was also cheerful again.
Yesterday, Nokia then announced a major restructuring. The Company wants to focus its energy primarily on 5G technology, and the global capacity expansion still holds some work in store for the network expert. In parallel, the Company wants to permanently reduce its costs by EUR 600 million with the targeted reduction of up to 10,000 jobs. In this context, costs of around EUR 700 million will be incurred by 2023, as the long-standing workforce is to be reduced in a socially responsible manner. Over a period of 18 to 24 months, 80,000 to 85,000 will then remain; the exact number depends on the development of the sales markets over the next two years. With this announcement, management is being somewhat cautious about the future.
In parallel with the job cuts, Nokia wants to put more money into research and development around 5G, digital infrastructures and cloud services. After a temporary rise to EUR 3.72, the share price dropped again to EUR 3.57 yesterday. From a chart perspective, this puts the stock back in no man's land, and it only becomes a buy above EUR 3.85.
Square Inc. - Back on top with peer-to-peer
Square operates a straightforward payment platform for merchants with the app CASH. In recent years, the fundamental growth driver was the consistent development of low-cost POS systems, which allowed even the smallest merchants and service providers to be invoiced immediately. The pandemic created the need for an online and takeaway solution; in the pandemic, customers now want to order and pay in a variety of ways. Square, therefore, had to develop an omnichannel offering to meet this need.
For some time, transactions have been increasing mainly in the peer-to-peer space. The gross payment volume of omnichannel and online sellers accounts for more than half of the sellers' gross payment volume, up from one-third 2 years ago. That's a transformative shift that will change Square's business for years and place new demands on the platform.
Now the music service Tidal is being added as the next transformation, so analysts expect above-average growth rates in the coming years. Currently, the P/E ratio is about 200, but in 2 years, it could fall below 50. After all, Square grew by an impressive 100% in 2020. The share was at a high of USD 283 and is now quoted at USD 235, and the market capitalization is around USD 110 billion. The further performance of the Square share will probably also depend on the further development of the NASDAQ, which is currently sputtering a bit.
Triumph Gold - Big Creek is now integrated
Triumph Gold Corp, formerly known as Northern Freegold Resources Ltd, is a Canadian-based junior resource Company engaged in property exploration in the Yukon Territory and Arizona. In March, they assembled a full-time team focused on advancing the Freegold Mountain project within the prolific Dawson Range copper-gold belt in Yukon.
The flagship project hosts three NI 43-101 mineral occurrences and covers an extensive section of the Big Creek fault zone, a regional structure directly associated with epithermal gold and silver mineralization and gold-rich porphyry copper mineralization. Concurrent with the technical team's expansion, Mr. Bower officially opened Triumph Gold's technical office in Kelowna, BC, last October with Brian May's appointment as senior geoscientist and Marty Henning as principal geologist. A very well-rounded team for further drilling.
The Kelowna technical group has already been working closely with Triumph Gold's existing team to identify new targets that further expand the existing resources. The objective is to develop key areas for exploration on the 200 square kilometer Freegold Mountain project as well as the Tad/Toro property and the recently acquired Big Creek property, all within the Dawson Range copper-gold district. We expect exploration to show very positive results in 2021.
Triumph's shares have a current capitalization of CAD 23.3 million at a price of CAD 0.17 per share. One of the major shareholders is Newmont Corporation, with 12.8%, while Zijin Mining Fund owns 9.8%. With a rising gold price in mind, one is well invested within Triumph Gold.
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