30. August 2021 | 12:22 CET
Porsche, Blackrock Silver, Xiaomi - These stocks are making headway!
Last week, the stock markets were eagerly awaiting the statements of US Federal Reserve Chairman Jerome Powell. His words reassured investors, as the tightening of the reins on the printing press is to be more gradual, and interest rate hikes are currently not an issue. From December, bond purchases are to be reduced by USD 15 billion. The US indices then rose again to near their all-time highs. But even without such events, which the whole world is watching, there are always stocks where exciting things are happening that can boost the stock market price. We are taking a closer look at three of these candidates today.
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ISIN: PORSCHE AUTOM.HLDG VZO | DE000PAH0038 , Blackrock Silver | CA09261Q1072 , XIAOMI CORP. CL.B | KYG9830T1067
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
Porsche - From carmaker to holding Company
When asked who or what Porsche is, most people would probably answer an automaker, but that is not correct if you look at it closely. The Company is not called Porsche Automobil Holding for nothing. The holding Company owns 53.3% of the VW Group's common stock and has holdings in aerospace, 3D printing, software production and a LiDAR manufacturer. The space division could ensure that VW Group has its own satellites in space to monitor its vehicles. The investment in 3D printing will help with the production of individual parts. LiDAR is essential for autonomous driving. The Software division develops solutions in areas such as traffic management, vehicle monitoring, etc. All investments are thus geared toward the future of the automobile.
Porsche's figures for the first half of the year were excellent compared to the previous year. A profit of EUR 2.45 billion after tax was reported after a loss of EUR 329 million in the previous year. This good result increased the group's net liquidity by EUR 24 million to EUR 587 million. As an investor, it is important to remember that much of the gains are due to VW and all of its sub-brands. The only shadow on the stock is the damage claims regarding the diesel scandal, which are ongoing. The inclusion in the new DAX 40, which experts assume to be certain, could have a positive effect.
The share has suffered recently, losing a good EUR 20 from its last high in June due to reports of new claims for damages in the USA. Inclusion in the DAX 40 and the quite lucrative investments offer some potential. Two of the investments, Markforged and Aeva, are now listed on the stock exchange and have thus pushed up the valuation of the investment. Around EUR 2.20 in dividends are paid out. Goldman Sachs sees the fair value at EUR 134.
Blackrock Silver - New vein discovered
Blackrock Silver owns two projects in Nevada. Silver Cloud and the main project Tonopah West. There, deposits with up to 3,075 g/t gold, 1,722 g/t silver and 3,322 g/t silver equivalent were already reported at the beginning of May. These promising results also ensured that a strategic partner, First Majestic Silver, stepped in with 2 million Canadian dollars (CAD) in a private placement in June.
On July 8, the Company provided a further update on its drilling program at the Tonopah West area. New high-grade silver and gold occurrences were discovered. Hole TX21-006 returned up to 21.86 g/t gold and 1,355 g/t silver. Not all drilling has been completed, and some results are pending. On July 19, the Company announced the tripling of its Tonopah West area. A total of 260 unpatented claims have been taken, extending the 10 high-grade veins identified to date.
The Company aims to complete resource estimation by the end of the year. The discoveries to date suggest a high estimate. The question is how to proceed with the second project. Rumor has it that the project could be listed separately. The share has been running sideways between CAD 0.75 and 0.95 for over a month. At the latest with the resource estimate, movement should come into the share.
Xiaomi - Wants to expand business areas
Xiaomi was only founded in 2010 but has already written a success story. Starting as a cell phone manufacturer, the Company produces a wide range of electronic products, including shoes, and wants to be involved in the future autonomous driving market. The Company's vision is to make high-quality technology products available to everyone. The Company, which is still relatively unknown in this country, has moved past Apple into second place among the world's best-selling cell phones in the smartphone sector.
The figures presented by the group on August 25 demonstrate the strong growth in almost all business areas. With sales of 87.79 billion Chinese renminbi (RBM), a new record was set. Compared to the previous year, this is an increase of 64%. Profit increased by over 87% to RBM 6.32 billion. In addition to the figures, the acquisition of Deepmotion, which develops software for driver assistance systems, was also announced. With this, the Company underlines its plans to produce an autonomous car.
While competitors have been working on developing such cars for a long time, Xiaomi seems to be late to the game. Still, looking at the Company's history, nothing seems impossible. The stock did not react positively to the quarterly figures, more precisely to the announced investments in an autonomous vehicle. However, after a gap down, the stock is already on the way up. Recently, the Company itself has also repeatedly bought back shares. As long as the support at EUR 2.50 is not broken, the chances are good that the share will move back to its annual high of EUR 3.85.
Even without major events, there are always exciting shares to discover. One should always keep one's eyes open, do one's own due diligence, and then decide if the stock suits. Porsche, along with the VW Group, is on its way to becoming the number one company in the e-car market. Blackrock Silver is sitting on treasure and has even expanded its previous territories. Xiaomi is writing the growth story par excellence, even if investors are not currently rewarding it. Each of these three stocks offers opportunities.