18. November 2020 | 10:04 CET
Plug Power, Almonty, Va-Q-Tec - take advantage of these special situations!
As a result of the astonishing rise in market prices since the Corona low in March of this year, not only tech stocks such as Amazon, Apple or Google but also, stocks from future industries such as hydrogen, fuel cell technology or electromobility, benefited. In addition to the share prices, the Companies' future forecasts also rose. Here is where the gravity of the situation diverges, in addition to promising business models, one needs one more thing - capital!
time to read:
ISIN: CA0203981034 , US72919P2020 , DE0006636681
Like at Thanksgiving
The US fuel cell manufacturer, Plug Power, has seized the opportunity. After the share price was still below USD 2.60 in March 2020, the stock was able to participate disproportionately in the industry hype. The closing price on Monday was USD 25.00, an almost tenfold increase. After the close of the stock exchange, the management dropped the bomb. With the issuance of a total of 38 million shares at a price of USD 22.25, the Americans secured a capital inflow of no less than USD 970.0 million. According to dealer circles, the new shares have been placed, and placement is officially scheduled to be completed on November 19, 2020.
Ambitious goals are getting closer
With this massive injection of money, the announced targets are to be attacked. The forecasts were announced as part of the Q3 figures last week. The management expects an increase in sales to USD 412 million for the year as a whole. However, EBIT should still be deep red at minus USD 33.3 million. The leap into the profit zone, with an increase of USD 10.0 million is not expected until 2022. The jumps in sales, however, are enormous. In 2022, the sales target is USD 573 million; in 2024, the sound barrier of one billion to USD 1.2 billion is expected.
Following this message, Plug Power corrected entirely naturally to the capital increase level. This measure could cause the stock to run out of steam in the short term. A relapse to the resistance zone at USD 19.00 is entirely possible. In the long term, however, this smart timing of the management offers significant room for improvement.
On the home stretch
The Canadian Company Almonty Industries, which operates two tungsten mines in Spain and Portugal, has already taken a significant step forward. They are close to completing the mega-project, namely the world's largest tungsten mine in Sangdong, South Korea. The mine could then be responsible for 5% of global tungsten production and cover 30% of production outside China. 80% of the tungsten produced worldwide still comes from China.
Well above the global average
According to analysts at First Berlin, the mine operated in Sangdong is "the best tungsten project in the world". Sangdong has a life span of several decades and the resource to investment ratio is very competitive at 3.9x. Also, the average tungsten content in Sangdong is 0.44%, twice the Chinese and global average. Due to the potential, the experts award a "buy" with a target price of CAD 1.45, a significant premium to the current price of CAD 0.62.
Financing almost completely
Besides a commitment of USD 75 million from KFW - IPEX Bank for the further development of Sangdong, which is 100% owned by Almonty, only the remaining amount of the equity component of USD 23 million is still missing. This remaining amount would be equivalent to the rise from junior to a mid-cap mining Company. CEO Lewis Black commented on the release of the Q3 figures: "Despite the numerous COVID-19 related delays and difficult negotiations, we are pleased to be able to issue the final press release on the financing of our Sangdong project shortly. In the meantime, construction work has started on site. 120 meters of the Monty B portal are almost complete, followed by the second phase of the 600-meter mine development, which will continue from the portal."
The solution to the problem
Even if it always sounds macabre, there are winners in the Corona crisis. The Mainz-based vaccine manufacturer, BioNTech, announced last week the successful data from the pivotal Phase 3 clinical trial for its vaccine candidate BNT162b2. The potential vaccine achieved an efficacy rate of more than 90% seven days after the second dose. Emergency approval in the US can likely be applied for as early as the end of November. So far, so good. The challenge with the first available vaccine is that it requires arctic temperatures of minus 70 degrees Celsius during transport and logistics to ensure its efficacy. Also, the vaccine can only be kept in the refrigerator and for one day only.
Moderna message not important
Profiteer of this problem is the Würzburg Company, va-Q-tec. This Company produces, among other things, thermoboxes and containers for the transport of temperature-sensitive goods. Just last week, an agreement was signed with a global top pharmaceutical manufacturer. According to the Company, the volume of the order should be in the high single-digit million range. The European Commission alone has pre-ordered 200 million doses of the BioNTech vaccine for this year. According to a statement by the management at the currently ongoing virtual equity forum, 3.3 billion doses of the vaccine could be transported globally in 2021 according to current calculations. The potential for va-Q-tec seems unlimited, no matter what the customers' names are.