September 2nd, 2024 | 07:15 CEST
PayPal, Desert Gold Ventures, and Nel ASA facing decisive milestones
Despite fears of recession and increasing geopolitical tensions, Germany's leading index, the DAX, and the Dow Jones reached historic highs and generated fresh buy signals. The precious metal gold is also unstoppable and, after a brief breather, is once again targeting the USD 2,531 per ounce mark. The smaller gold producers and exploration companies, which have so far hardly been able to capitalize on the strong rise, should also benefit disproportionately from a longer bull run.
time to read: 3 minutes
|
Author:
Stefan Feulner
ISIN:
PAYPAL HDGS INC.DL-_0001 | US70450Y1038 , DESERT GOLD VENTURES | CA25039N4084 , NEL ASA NK-_20 | NO0010081235
Table of contents:
"[...] As we look at four or more zones in more detail from the beginning, investors can expect a continuous news flow that will underscore our vision of the Holy Grail project as a giant opportunity. [...]" Nick Luksha, President, Prospect Ridge Resources
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.
Tag cloud
Shares cloud
PayPal - End of the bottoming process
For months, investors have been expecting an end to the bottoming out and a strong rebound that would at least push the share price back into the three-digit range after the horrendous price losses of recent years. After the payment provider's share marked a double bottom at USD 56.97 at the end of July, it rose impulsively to the current level of USD 73.16. The next resistance area is USD 76.54, after which the downward gap at USD 85.20 that was torn in February 2023 beckons.
PayPal shares received a tailwind last week with the announcement of the expansion of the partnership with payment service provider Fiserv. The common goal is to simplify the integration of PayPal services for merchants in the US. This marks another step in the decade-long collaboration between the two companies, which focuses on improving the customer experience through innovative payment solutions.
Highlighted is the PayPal product Fastlane, which allows customers to make payments with just one click, even without an account with a merchant. This functionality is in line with similar efforts in the recent cooperation with payment processor Adyen.
"This partnership underscores our commitment to improving the checkout experience by working with leading payment processors and e-commerce platforms," said Frank Keller, Executive Vice President and General Manager of PayPal's Large Enterprise and Merchant Platform Group.
Desert Gold Ventures with significant catch-up potential
The exploration company Desert Gold Ventures has benefited significantly from the rising gold price in recent months, posting a performance of over 100% to reach CAD 0.075. However, the share price has still lost almost 80% since its high of CAD 0.35 in July 2020. This could change quickly for two reasons. Firstly, smaller mining companies perform with a time lag compared to the gold price, but in a longer upward cycle, they have historically made up for this performance with leverage. On the other hand, Desert Gold Ventures owns a real gold gem in its portfolio with the SMSZ project in West Mali, Africa.
The 440 sq km land area, which has proven mineral resources of almost 1.1 million ounces, is located in the highly mineralized Senegal-Mali shear zone, in the immediate vicinity of producing mines operated by Barrick Gold, Allied Gold, Endeavour Mining, and B2Gold.
Recently, CEO Jared Scharf released an update on the project's preliminary economic assessment (PEA), which includes oxide and transitional resources from the Barani East and Gourbassi West zones and is expected in the fourth quarter. According to the update, the new assay results from 12 drill holes show promising gold grades and have been sent to South Africa for further investigation. In addition, drone surveys were carried out to obtain precise topographical data for the planning of the mining infrastructure.
In their latest study, the experts at the analyst firm GBC AG set a target price of CAD 0.425. In addition to the extensive 30,000 m drilling program, the prospect of the construction of a profitable heap leach mine is likely to trigger a sharp rise in the share price.
Nel ASA - Subsidiary monetized
Hydrogen innovator Nel ASA has been hit even harder than payment service provider PayPal in recent years. After peaking at USD 4.20 in January 2021, the Norwegian company's share price fell by over 87%. Disappointing results and postponements were the reasons for this decline. The Nel ASA share is currently trading at USD 0.52 but could be ripe for a stronger countermovement in the coming weeks. On the one hand, the price is on the verge of breaking above the 50-day line, while on the other hand, several bullish divergences have been forming for months in both the RSI and the trend-following indicator MACD.
The share price received a tailwind in recent trading days from the news that Faro BidCo ApS, an indirect subsidiary of an infrastructure investment fund of Swiss Life Management AG, has submitted a takeover bid. The bid is the equivalent of EUR 1.11, which equates to a valuation for Everfuel of around EUR 96 million.
The three major shareholders of Everfuel, HvVC ApS, the Clean H2 Infra Fund, and E.F.Holding, which together hold around 75% of the shares in the Company, have agreed to the takeover bid.
In its latest study, US analyst Bernstein upgraded the Nel ASA share from NOK 6.75 to NOK 7.25, equivalent to EUR 0.62, and gave it a "Neutral" rating. Following the hydrogen company's exit from the refueling business, which has diluted liquidity, the focus is now back on electrolysis.
The payment service provider PayPal announced an expansion of its cooperation with Fiserv and celebrated reaching a new 52-week high. Nel ASA continues to focus on its electrolysis business. According to the experts at GBC, Desert Gold Ventures will benefit from a further rise in the gold price and has multiplication potential.
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.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
