April 9th, 2024 | 06:45 CEST
Palantir, Globex Mining, Bayer - The trend is pointing upwards
After a successful first quarter of 2024, the DAX and Dow Jones took a well-deserved breather last week. In contrast, the precious metal markets for gold and silver continued their upward trend. Gold also reached new absolute highs of USD 2,354 per ounce. While gold producers such as Barrick Gold and Newmont remained in hibernation, they have been following the rising base price for several weeks now. There is currently also an opportunity for smaller commodity stocks to participate disproportionately in the upward trend.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
PALANTIR TECHNOLOGIES INC | US69608A1088 , GLOBEX MINING ENTPRS INC. | CA3799005093 , BAYER AG NA O.N. | DE000BAY0017
Table of contents:
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Globex Mining - Asset classes with buy signals
CEO Jack Stoch has been at the helm of the commodities incubator Globex Mining since 1983, focusing on acquiring and optioning properties to partners. Since then, a diversified portfolio of 247 projects has been built up. This includes interests in 123 precious metals, 68 base metals and 56 specialty metals and industrial minerals.
The gold and silver projects, in particular, are likely to significantly increase the intrinsic value due to the exploding underlying values. If one considers the market capitalization of CAD 51.39 million and subtracts the portfolio of cash, shares and marketable securities of more than CAD 25 million, the value of the almost 250 holdings would be around CAD 26 million. The portfolio's undervaluation is obvious at first glance.
In addition, Globex Mining receives a regular cash flow through income from license fees, the leasing of mining rights and the pro rata collection of minerals sold by partners. The Company is currently cooperating with around 100 projects with such licensees, who also bear the exploration costs.
In addition to rising gold and silver prices, the tide is also turning for industrial metals. The copper chart has been pointing upwards for weeks, and metals such as lithium, which are urgently needed for the energy transition, are also currently forming a stable base. The Globex share chart reflects the positive portfolio development. At CAD 0.93, the share price is on the verge of breaking out of an ascending triangle. If this succeeds, the stock should quickly leave the penny stock zone.
Palantir - Before the next move
The technical chart development of data analysis specialist Palantir is almost textbook-like. Since the beginning of May last year, the Company's market capitalization rose by around 280% from USD 7.28 to USD 27.50, partly due to the boom in the trending topic of artificial intelligence. The Palantir share has since corrected and further reduced the overbought conditions created by the price jump. A prominent support zone, the annual high of USD 21.85 reached in 2023, has been successfully defended so far.
The new cooperation agreement with Oracle could result in a push in the share price. The two US companies intend to collaborate on the sale of cloud and AI services, which should once again significantly increase the revenue and profit of the Denver, Colorado-based company.
One analyst who was not surprised by Palantir's recent rally is Bruce Kamich from TheStreet Pro. Following the Oracle deal, he set a new price target of USD 48. This would mean a potential upside of around 120% on the current share price.
Bayer - A drop in the ocean
Despite the positive news over the weekend, the suffering continues for investors of the pharmaceutical and agricultural giant. Nevertheless, the Leverkusen-based company reported a partial success in a legal dispute, which once again concerned the weedkiller Roundup.
According to court documents filed on Friday, Judge Daniel Green in Jefferson City, Missouri, reduced the damages awarded to the three plaintiffs by a jury from USD 1.5 billion to USD 600 million. Bayer had lost the case against the three plaintiffs in November. The plaintiffs claimed that the long-term use of the weedkiller caused their cancer.
However, as revealed in the published annual report for the year 2023, this was just one of approximately 54,000 lawsuits related to the weedkiller glyphosate. Thus, the Company is far from resolving this ongoing issue. Accordingly, Bayer shares were only able to recover briefly, but they gave up all their gains again yesterday and were once again at the bottom of the DAX, down 4%. A turnaround looks different!
The intrinsic value of Globex Mining's portfolio is likely to have developed positively due to the sharp rise in precious metal prices. Meanwhile, analysts see a doubling of the Palantir share price. Bayer celebrated a partial success, but the glyphosate lawsuits will likely continue to weigh on the Company.
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