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June 15th, 2021 | 09:23 CEST

Palantir, Saturn Oil + Gas, RWE - Attention: 200% for your portfolio!

  • Oil
  • Gas
  • WTI
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The stock markets have run hot, and cryptocurrencies such as Bitcoin, Etherum and Co. are too volatile. In contrast, you do not feel comfortable investing in gold and silver despite fundamentally good prospects, such as the high national debt and the risk of rampant inflation. The alternative of leaving the money in the savings account is also no longer effective due to the negative interest rates. We show you an investment with which you can not only preserve your capital but multiply it.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: US69608A1088 , CA80412L1076 , DE0007037129

Table of contents:

    Lack of investment as leverage

    Speculation that demand will boom as the global economy recovers from the aftermath of the coronavirus pandemic is giving crude oil a further boost. North Sea Brent crude price is up 0.6% to a two-year high of USD 73.12 per barrel. Even in the long term, we will not be able to do without oil despite the energy transition. Instead, Rosneft CEO Igor Sechin warned that "the world risks an oil shortage as climate concerns hurt fossil fuel investments."

    Saturn Oil & Gas set an example for the entire petroleum industry last week. The Company confirmed the completion of its previously announced transformative acquisition of light oil assets in the Oxbow area of southeastern Saskatchewan. Most of which is located in one of North America's most economical oil areas, making it one of North America's most significant oil producers. The total cost of the acquisition was USD 93 million. It was financed through a combination of proceeds from the previously announced senior secured term loan, a brokered private placement and a concurrent non-brokered private placement. As a result, the Canadians are acquiring approximately 280,000 net acres for just 1.4x cash flow, or only about CAD 14,000 per flowing BOE. Recent competitors were putting more than CAD 30,000 per flowing BOE on the table.

    Production increased tenfold

    Saturn Oil & Gas previously produced only 500 to 700 barrels of oil per day. With the acquisition, this will now be expanded by a factor of 10 (!) to up to 7400 barrels per day. At the same time, Saturn Oil & Gas ensured that the repayment of the loan plus debt service is fully secured until summer 2023 by selling large parts of the oil production for the next two years. For the next three years, the Company also identified the potential to generate annual free cash flow by optimizing and re-completing more than 500 existing wells.

    Revaluation not perceived

    After a brief jump to CAD 0.21, the Saturn Oil & Gas share price started to retreat again and is currently trading at CAD 0.15. Due to the reported secure earnings from hedging, this is not understandable. Analysts at GBC Research highlighted the potential in a recent study. By optimizing process flows and new wells, the Company's net amount will increase to CAD 65 to 70 million per year within 12 months. Converted to today's market capitalization of CAD 83.8 million, it would raise the potential return to 78 - 84% per year. As a result, a price target of CAD 0.46 has been announced, up 200% from the current price.

    Is the breakout coming?

    Meme stocks are all the rage right now. One of the most popular since the hype began has been the stock of Palantir Technologies. In January, the Reddit sub-community, WallStreetBets, managed to drive the price of the data analytics specialist from USD 26 to USD 45 within a few days. Since then, the stock has weakened in the wake of disappointing annual figures and the end of the lock-up period for existing shareholders, reaching a low for the year of USD 17.06 in mid-May.

    Due to solid figures for the first quarter and the announcement of several prestigious orders, Palantir pushed back towards the breakout level at around USD 24.70. The share price then fell to a low for the year of USD 17.06 in mid-May. At the end of May, it was announced that the US company is expanding its cooperation with the US Special Operations Command (USSOCOM). The contract is worth a total of USD 111 million, including an option to extend, with USD 52.5 million accruing directly when the contract is awarded. A breakout above the mark would mean upside potential initially to USD 30.

    Starting signal at RWE

    Sideways has been the direction of the energy group RWE for more than a year. In a corridor between EUR 31 and EUR 35, the share oscillates relatively untouched by the considerable hype around renewable energies. Now, wind could come into the chart in the truest sense of the word. RWE has launched a multi-billion wind power project off the British North Sea coast. However, it will take up to 5 years before the Sofia wind farm on Dogger Bank is completed. A total of 100 turbines, with a combined capacity of 1.4 gigawatts, will be installed around 195 km off the northeast coast of the UK. The cost of the wind farm is around EUR 3.5 billion. From a chart perspective, the share should break through the resistance zone at EUR 35. On the downside, there are interesting entry opportunities at the current level.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    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.

    About the author

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    Shell, Hard Value Fund, Rheinmetall - All for performance!

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