14. June 2021 | 10:55 CET
Plug Power, Troilus Gold, TUI - Step on the gas pedal
While the G7 summit agreed almost unnoticed on global taxes to make the big tech companies pay in the respective countries where they made profits, this news practically did not interest the markets at all. On the one hand, this may be because the introduction will still take years; on the other hand, such news takes a while until it has penetrated fully. Currently, one should therefore exercise a little caution with the large tech stocks. Today, we have picked three companies independent of this and whose share prices should rise in the near future, spurred by good news.
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ISIN: US72919P2020 , CA8968871068 , DE000TUAG000
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Plug Power - Support from Renault and the US government
As a hydrogen shareholder, you have to expect big swings. As recently as January, the hydrogen theme was all the rage, then came the rude awakening after the big rally. Almost all shares went down by nearly 90%. Plug Power's share price fell by a good 75%. Since May 11 and the announcement of the quarterly figures, however, a lot has happened. The established downtrend ended with a break of the USD 30.34 level.
Plug Power has a series of news to thank for this: First and foremost, the collaboration with Renault was announced on June 3 to build a hydrogen-powered van. On June 7, the US government reaffirmed hydrogen as the fuel of the future - prices of USD 1 for 1kg of hydrogen were issued to make hydrogen economically competitive. Lastly, a corresponding infrastructure bill was introduced.
The primary beneficiaries will be companies with a presence in America, such as Plug Power. The cooperation with a European carmaker will also give the Company direct access to the European market. The share is currently struggling with the 200 moving average. If this level is held directly, this is to be seen as a sign of strength, but a setback is also possible; only the low of May 11 should not be undercut again.
Troilus Gold - Expansion of gold deposits
On June 8, Troilus Gold provided an update on its ongoing exploration program at the J Zone and announced the expansion of the gold deposit from 200m to 700m. At the same time, the thickness of the deposit was confirmed by up to 100m of down-dip mineralization. A gold equivalent of between 1.21 and 17.12 grams per tonne was encountered. Drilling is expected to provide a mineral resource update, and a feasibility study of the mine project is expected to be completed this year.
Since January, 55,400m of drilling has been completed, and 10,000m is to be added in each of the coming summer months. This drilling is costing money, and so on June 10, the Company announced an increase in its bought-deal funding to CAD 42.5 million. The shares are priced between CAD 1.10 and CAD 1.89. It shows that institutional investors are interested in the Company and are providing it with fresh capital. On the other hand, there is a dilution of the existing shareholders, which has led to a decline in the share price up to CAD 1.06.
Currently, you can get in cheaper than in the bought deal. In addition, Urban Gold was acquired in May, which is a reasonable extension of the original project. With the financing, the Company should cover all costs, and one can calmly wait for the resource update and the feasibility study. Anyone who wants to invest in gold can currently do so here at a favorable price.
TUI - Just before the outbreak
On Sunday, the German government removed several popular vacation countries and areas from the list of risk areas, such as the Greek islands, Austria, Croatia, and several other places. Corona numbers are down, and people are longing for time off from the pandemic and thus for a vacation. TUI should benefit from this, especially since the digital vaccination passport is also to be introduced, making travel much more straightforward, at least for those vaccinated.
But TUI is not idle in other ways either. It has agreed to cooperate with Nezasa, a Swiss travel technology company, to create a new digital platform that will make multi-day trips and related activities plannable. It is a smart move by TUI, as the market is growing and offers a current annual revenue of EUR 96 billion. They are trying to digitize this offline market and can offer an advertising platform for B2B customers on the one hand, as well as added value for B2C clientele.
The share has already tested the resistance at EUR 5.25 three times and is currently trending sideways. With such positive signals as more travel areas, fewer Corona cases and a rising travel sales market, it is probably only a matter of time until the EUR 5.25 falls. The news flow is optimistic for a good summer business, and shareholders should benefit from it too.