07. June 2021 | 11:06 CET
QMines, BioNTech, Beyond Meat - Stock pearls with a lot of potential
Commodity prices are rising, Corona is still a major theme and stock gambles, like AMC last week, are still working. As a resourceful investor, you have to do your research and ideally get an information edge over other investors. If you read a lot, you learn a lot and can often profit from it. Today we have picked out three stocks with a lot of potential - one from the commodities sector, another the Corona flagship and a chance on the next AMC.
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ISIN: AU0000141533 , US09075V1026 , US08862E1091
QMines - Eagerly awaiting the update
Recently listed Australian junior explorer QMines has reported the first results from its historic Mount Chalmers project. It has some high-grade copper-gold-silver deposits. 11 holes were drilled for 1,587m with up to 13.4% copper, 6.11 grams per tonne gold, and 31 grams per tonne silver.
The Company has been working on reactivating Mount Chalmers for some time, evaluating historical drill data as the project had been dormant for 25 years. In February, the drill program started to confirm the historical data. CEO Andrew Sparke feels that Mount Chalmers has excellent development potential. Good results are expected to continue, leading to a resource update.
QMines also aims to excel in sustainability and become Australia's first carbon-free copper and gold developer. The upcoming results are eagerly awaited. The share price rose by 60% when the first drill results were announced. It has now been sold off again, and the gap has almost been closed. If the upcoming results continue to show such good values, there is a chance of doubling.
BioNTech - An industry leader with a product pipeline
BioNTech is the most renowned vaccine manufacturer, made in Germany. For 2020, the Company could report total sales of USD 482 million. BioNTech is approved throughout Europe for all children 12 years and older. Last week, approvals were also reported in Switzerland and the United Kingdom. The clinical trial in adolescents between 12 and 15 years of age showed 100% protection against disease. Now national vaccination committees must decide whether to approve the vaccine.
There is also good news for BioNTech in the patent dispute. The EU Commission favors compulsory licensing, which means BioNTech would allow other companies from poorer countries to produce the vaccine in exchange for money. That way, money would still flow into the Company's coffers, even if they stopped making it themselves. BioNTech is more than just the Corona vaccine, however. A total of 22 drugs are in development, and if Corona opened the door to other mRNA substances, there are still plenty of opportunities.
There was a sell-off following the push by the US to remove patent protection. However, this has now been offset, and the stock has formed a new all-time high. Sales of around USD 10 billion are expected for 2021. Should the drugs in development prove useful, there is even more price fantasy here. Lots of potential, but just not immediately. One should wait for a setback to enter.
Beyond Meat - Trend market and possible short squeeze
Beyond Meat's quarterly figures were poor. Both sales and profits were missed. Restaurant sales were down as much as 34%, and retail sales were also down a whopping 40% year-on-year, growing 45%. In addition, inflation is taking its toll on the Company and profit margins are thinning as there is also more and more competition.
Still, this should only be a short-term picture, as the trend toward healthy, sustainable eating continues to grow. Even though retail will not continue to grow as strongly in the long run, it is building a decent foundation. Sales of vegan meat products in Germany increased by nearly 100% in 2020. After Corona, restaurants will also increasingly turn to Beyond Meat products again.
So why might Beyond Meat's stock be a stock with a lot of potential? For that, you should take a look at Reddit, where the stock is being hotly debated because it has a 25% short ratio. Like AMC recently, there could be a short squeeze here. The stock already jumped last week and Jim Cramer, a CNBC stock market commentator, is fueling the sentiment with tweets. Those not afraid of risk could bet on the next AMC with Beyond Meat.