December 1st, 2021 | 13:17 CET
Nordex, MAS Gold, Deutsche Telekom - Should you invest now?
Table of contents:
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Nordex - Benefiting from the traffic light government
Since one of the cornerstones of the traffic light coalition is the climate, companies from the renewable energies sector, such as Nordex, are benefiting. How much tailwind the stock gets could be observed on November 25 during the DAX crash. The Nordex share managed to close green - a rarity on that day. According to Bloomberg, the new government wants to pay EUR 60 billion into a climate fund in the next 4 years to get closer to the climate targets set.
The wind turbine manufacturer reported one major order after another in November. First, there was an order from Peru for 30 wind turbines with a total capacity of 177 megawatts. It was followed on November 30 by a follow-up order from Brazil for 65 turbines for the expansion stage of the Cajuina wind farm with a total volume of 370 megawatts. Three further orders for a total of 213 megawatts were also landed.
The 9-month figures show YOY growth of 46% to 4.9 gigawatts, corresponding to just under EUR 4 billion sales. The order backlog remains consistently high at EUR 8 billion. Only the margin remains low at 2.5%. An improvement in this area is probably not in sight until 2023. The stock formed a double bottom on November 9 and was on track to take out the October high. Then came the crash due to the new Corona variant, and therefore the level has not yet been overcome.
MAS Gold - New drill results
With inflation rising ever higher, concerned investors are hedging with gold. The physical gold demand has already increased by one-third this year. Those who do not have a safe at home can invest their money in gold producers or explorers. Gold explorers have a higher risk, but above-average returns can be expected if the stock takes off. One interesting gold explorer is MAS Gold, which operates in Saskatchewan's domestic La Ronge Gold Belt. The Company owns several projects, some of which have already proven gold under the NI 43-101 report.
Management's vision is to prove 1 million ounces of gold at the North Lake, Greywacke North, Point Deposit, Contact Lake, Henry Lake and Elizabeth Lake projects and then process the mineralized material at a central point to produce gold. At the Greywacke project, 81,500 ounces of gold have already been proven, with an additional 14,100 ounces inferred. A PEA study is underway as well as a new LiDAR survey. However, dated November 29, the latest results come from the largest project, North Lake, where the summer drill program was completed.
A total of 11 holes were drilled for a total length of 3,490m. Up to 4.96 g/t gold was encountered, and one hole revealed 1.38 g/t gold over a length of 103m. Jim Engdahl commented, "The 2021 summer drill results have again increased the known extent of the North Lake gold deposit...". A further 5,500m is to be drilled this winter to extend the mineralization intersected. Since July, the stock has been in a sideways trend between CAD 0.10 and CAD 0.12 and is currently trading at CAD 0.105.
Deutsche Telekom - Change in strategy
The new German government's digitization plans were supposed to have a positive impact on Deutsche Telekom. However, last Friday's crash put pressure on the share, which has been sold off since then. Add to that news like the settlement from an investor lawsuit that could come to an end after 21 years. On the one hand, it is good that this chapter is probably over, but on the other hand, it costs money. According to an article in Handelsblatt, the management wants to change strategy due to the high debts of EUR 130 billion.
The Company is looking for partners in several EU countries to reduce the cost of fiber rollout. These collaborations are planned for the first time in Austria and Poland. In addition, European telecom companies have joined forces to demand that the major US tech giants share in network investments, as much of the data traffic is generated by their platforms. The German DAX company is looking to significantly reduce its net debt to an adjusted EBITDA ratio in the coming years.
Operationally, things are going very well due to the growing stake in T-Mobile US and dividends are expected to continue to be paid. Even in the event of a new lockdown, this should not do much harm to the stock. For the chart technique, the share must not close below EUR 15.64. Important support would then be broken, and a test of EUR 14.52 would be possible.
Even a new lockdown should not particularly hurt these three companies. Nordex benefits from the climate-friendly policy of the new government. MAS Gold is a possible portfolio addition as inflation protection. Deutsche Telekom is currently battered on the chart; however, the business model works independently of the lockdown.
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