March 11th, 2022 | 10:15 CET
Nordex, MAS Gold, Hensoldt: Shares for the new era
Table of contents:
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Nordex: When headwind meets tailwind
The best energy is the one that is available free of charge, as the saying goes about regenerative energies. But it is not quite that simple. Wind turbines and photovoltaic modules require raw materials that must be recycled at the end of their service life. Nevertheless, the bottom line is that the assumption surrounding renewable energies is correct: wind, sun and water are - provided the appropriate infrastructure is in place - inexpensive and, above all, climate-friendly. Wind turbine manufacturer Nordex has been benefiting from climate change for years. Last year, the Company suffered from weak margins and sought its salvation primarily abroad due to the slow pace of approvals. In South America in particular, business was booming at the end of 2021. And today?
Nordex continues to suffer from weak margins. The market is now waiting to see how the energy price shock will affect Nordex. Over the past few days, energy prices have continued to rise rapidly, putting a strain on all industrial companies. In Germany, there are even fears of a 5% recession. Such a recession is also likely to hit Nordex. However, given the expected massive investments in renewable energies, the stock remains promising. Currently, the value is fighting its way out of its downward trend, and analysts see fair values at around EUR 20. Because of the high volatility due to the war, nothing has yet been decided for the share from a chart perspective.
MAS Gold: Low valuation and potential crisis investment
While investors in stocks from the renewable energy or defense sectors must hope that the increased costs do not destroy the hope of government billions, gold investors invest differently. On the one hand, the precious metal is benefiting from increasing geopolitical instability, the prospect of bloated government budgets and a turnaround in interest rates, which, in view of the war and its consequences, will be a light version at best. This mix of uncertainty and inflation may continue to boost gold. In the course of the week, the precious metal had already exceeded the USD 2,000 mark.
Those who want to get a foot in the door with gold can do so not only with low-cost ETCs but also with shares in small exploration companies. These companies prospect the precious metal on properties and are traded by the market at a large discount to the metals in the ground. The reason is that there are usually many hurdles to overcome before a production decision can be made. However, since the future is traded on the stock exchange and exploration companies repeatedly report drilling results and other interim statuses, these stocks are more or less popular depending on the spirit of the times. With gold above USD 2,000 and growing uncertainty, market-oriented stocks, such as MAS Gold, act as a warrant on the gold price and volatility.
MAS Gold operates in the Canadian district of Saskatchewan, where it is developing four projects totaling 34,323 hectares. As recently as January, before gold surged, MAS Gold secured 100% of the SW Gold project. With the Company's approach to jointly developing its properties located in the middle of the La Ronge Greenstone belt and leveraging synergies between projects, the Company could be exciting for investors. Just recently, a drilling program at the North Lake property ended, with work continuing elsewhere. The results expected in the coming weeks and months could meet with an interested market.
Hensoldt: Will the big bang follow here?
The market has been more than friendly to the Hensoldt share in recent days. The shares of the defense company, which emerged from Airbus Defence and is based in the picturesque Munich suburb of Taufkirchen, recently celebrated record highs. Hensoldt is a specialist in radar and sensors, and according to market participants, it should benefit from rising defense spending in Germany and Europe. From the perspective of several months, Hensoldt's share price performance looks like a flagpole. From the previous high, the share has already corrected about 15%. Since it can be assumed that at least some of the plans presented with verve by Chancellor Scholz will be relativized in retrospect, investors in Hensoldt should be cautious. While the current situation marks a turning point, trees do not grow to the sky.
While the investment story of Hensoldt is possibly too obvious and therefore already over before it has started, Nordex is just about to break free on the chart. However, risks lie in the increased energy costs - Nordex also has to build its wind turbines first. As a growth company, the geologists around MAS Gold care relatively little about energy costs. The Company should even profit from market panic, provided that gold also rises in parallel. Considering the low market capitalization, continued drilling results and a resource estimate announced for the first quarter of 2022, the stock could become interesting for speculative investors.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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