12. May 2021 | 11:29 CET
Nordex, Desert Gold, Palantir - The comeback of the year
While technology stocks are currently still in correction mode, gold is about to make its big comeback. Even the US Treasury Secretary Janet Yellen could not stop the precious metal with the announcement of a possible interest rate hike. The fear of a significant increase in inflation is currently too intense. The extreme jumps on the commodity markets strengthen the concerns of investors. There is still an opportunity to invest in fundamentally favorably valued mining stocks in addition to gold. Please do not wait until it is too late.
time to read: 3 minutes by Stefan Feulner
"[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.
Desert Gold Ventures - The 100%-chance
After correcting from last year's high of USD 2,075 to its interim low of USD 1,678 by early March, gold successfully retested that low in late April. Since the formation of a double bottom, the precious yellow metal went steeply uphill. Not necessarily to be expected, it was even possible to break through the broad resistance zone at USD 1,820 on the first move. The next resistance to the upside would be the vertical resistance zone at USD 1,860 until the uptrend formed since August 2020 could be taken out.
In addition to the national debt, as already mentioned above, the escalating price increases speak for an investment in gold. However, not only the precious yellow metal itself benefits from the inflation concerns, but also the corresponding gold mining stocks. In addition to the big players such as Barrick Gold or Newmont, which delivered excellent quarterly figures, mining stocks from the second tier also offer enormous opportunities.
The highest price of the gold mining explorer Desert Gold Ventures, for example, was exactly 100% higher than the current price. However, this does not in the least reflect the performance of the Canadians. Desert Gold's focus is on Mali, the number four producer of gold in Africa. Here, projects of industry giants such as B2Gold, Barrick and the Sadiola and Yatela mines of the consortium of AngloGold Ashanti, Iamgold and the government of Mali, among others, are located in the near vicinity. The Canadians' portfolio focuses on two gold exploration permits with large land areas: the SMSZ project and the Djimbala project in western Mali.
Recently announced results at the SMSZ project showed that Desert Gold is looking for the yellow metal in the right place. There are 5 large mines near the project, both north and south. According to the Company, the 410 sq km property is the most extensive contiguous non-producing land package in this region of the country. Exploration drilling is proceeding according to plan. Currently, a good quarter of the planned 20,000 meters of drilling has been completed. Based on the current results, 10 additional target areas have also been identified. That promises a consistent, year-round news flow. Desert Gold is one of the most interesting second-tier mining stocks, and interested investors should buy it at the current level as a portfolio addition.
Palantir - Long-term success story
Even the CEO Alex Karp speaks of his Company Palantir as a long-term investment. A long breath and strong nerves are required for the US data analysis company in any case. While the share price was still at USD 45 in mid-February, yesterday, after the publication of the quarterly figures, a share cost only USD 17.06. However, in the course of trading, the price turned significantly positive and climbed during trading to just under USD 20. The reason for the positive run is the continued positive outlook concerning the solid growth of the Company.
For the second quarter, the Company expects revenues of USD 360 million, while analysts expected only USD 344 million. Palantir aims to grow at 30% annually through 2025. Excluding special items, the US Company generated earnings of 4 cents per share, which was in line with analysts' expectations.
In addition to the publication of the quarterly figures, the data-mining Company announced that Bitcoin will be accepted as a means of payment by customers in the future and is considering making investments in cryptocurrencies itself. In the long term, the share is more than interesting due to the high economies of scale but very volatile.
Nordex - Weak figures, ambitious outlook
Due to postponements caused by the Corona pandemic and the winding down of low-margin business, management predicted a weak first quarter weeks ago. As a result, the net loss of EUR 55 million was significantly higher than in the same period of the previous year. Operating earnings before interest, taxes, depreciation and amortization fell by around one-fifth year-on-year to EUR 10.4 million, with the corresponding margin dropping to 0.8% from 1.4%.
Despite the weak opening quarter, the annual forecast was confirmed. Sales are expected to climb further to EUR 4.7 to 5.2 billion in 2021. The EBITDA margin is expected to range between 4.0 and 5.5%. For 2022, the Company forecasts sales of around EUR 5 billion with an EBITDA margin of 8%.