15. April 2021 | 07:12 CET
Nordex, Silver Viper, Nikola - Caution, turnaround potential!
Anticyclical action requires courage but also offers the greatest opportunities for returns. In addition to individual stocks, which appear attractive again after a correction of several months, there are currently good entry opportunities on the gold and silver market to profit from the long-term increase. In addition to investing in physical gold and silver, it is currently worthwhile to invest in attractive mining stocks. These promise disproportionate price gains in the event of a comeback of the precious metals market.
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ISIN: DE000A0D6554 , CA8283341029 , US6541101050
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
All in one Company
The Canadian Company Silver Viper is mining both gold and silver in Sonora, Mexico. Mexico is the world's leading silver producer and has a long mining history. Silver Viper, which is part of the Belcarra Group, took over the La Virginia project, formerly held by Pan American Silver Corp. Historical data was analyzed to define new target drilling. The previous owners had previously drilled 188 holes totaling 52,000 meters. However, the current focus is on El Rubi, which is located approximately 5 km north of the historic center. Silver Viper's focus on El Rubi was demonstrated by results from the first six holes of the 2021 drill program. The first hole intersected three main zones of mineralization, culminating in the deepest and broadest highest-grade intercept found at El Rubi.
Additional excellent drill results at the El Rubi zone were announced in the middle of last month. The best intercept from drill hole LV21-290 showed an average grade of 88 g/t silver and 2.43 g/t gold over a length of approximately 20 meters, further confirmation of the high-grade zone. As a result, management plans to expand the El Rubi zone. Silver Viper's long-term goal is to advance the project to a point where a major mine producer takes over. However, to fund further drilling programs, an earlier entry by a major would be a distinct possibility. Currently, Silver Viper is traded in Toronto and the OTCQB in the USA and Frankfurt. Particularly in the USA, one sees an increasing interest in the paper. The market capitalization of the junior explorer is currently just under EUR 33 million. With a rising strike price, the Company will be one of the long-term performers.
Light at the end of the tunnel
Will the never-ending story of the specialist for electrically powered trucks find a positive end after all? After allegations of fraud against the old management, Nikola's share price fell from the high of USD 93.40 to currently USD 12.00. Last week, CEO and founder Trevor Milton, who resigned in September and is still the Company's largest single shareholder at 20.1%, sold 3.5 million shares. The timing could not be worse. Nikola currently plans to issue up to USD 100 million worth of new shares.
The new management is currently trying to put the troubled past to rest and is optimistic about the future. Nikola plans to launch its first zero-emission, fuel cell-powered truck in 2023, complete the first phase of a factory under construction in Arizona by the end of the year and build the first of up to 700 hydrogen fueling stations starting next quarter. Yesterday, another step toward a positive future was taken with the announcement of a collaboration between Nikola, Iveco and OGE, a leading European transmission system operator. As a result, the parties intend to accelerate the deployment of hydrogen infrastructure and refueling solutions.
The collaboration is expected to enable cost-effective distribution of hydrogen from production to storage and refueling sites in Germany to meet the industry's needs. Nikola's stock started trading yesterday at a 5% premium on this news. An investment in Nikola is still to be considered speculative. However, should the new management succeed in steering the operating business further in a positive direction, a share price rally could be imminent. The short ratio in the share is currently still over 30%.
The order machine
Wind turbine manufacturer Nordex is currently receiving a steady stream of orders. This time it was Finland. The project developer WPD ordered 17 wind turbines for a wind farm project. The turbines are to be part of the "Nuolivaara" wind farm with a total capacity of 96.9 megawatts. It is being built in the northern province of Lapland, about 25 kilometers northeast of the small town of Kemijärvi. Despite the flood of orders, the Nordex share price had to give way from the high of EUR 29.20 and is currently correcting in the area of EUR 24.20, where there is stronger support. Even a drop to the EUR 23 area would not be a disaster from a chart perspective but rather a renewed entry opportunity.