Qualcomm, Saturn Oil + Gas, MARA Holdings – Expansion in focus

MARA Holdings – Follow the trend

Michael Saylor, founder of MicroStrategy, is massively increasing the Company's value with Bitcoins, a strategy that is being copied in the community. MARA Holdings has now jumped on the bandwagon. MARA is a global leader in digital asset management, developing and deploying innovative technologies to create a more sustainable and inclusive future. So far, the Fort Lauderdale-based company has 26,747 Bitcoins in its portfolio, which is, of course, significantly less than MicroStrategy's 331,200 Bitcoins.

To significantly increase the number, the Company issued 0.00% convertible bonds due 2030 with a total volume of USD 1 billion. The bonds were sold to individuals in a private offering. MARA expects to use approximately USD 199 million of the net proceeds from the sale of the bonds to repurchase USD 212 million of the aggregate principal amount of its existing 2026 convertible bonds in privately negotiated transactions, while the remainder of the net proceeds will be used to acquire additional bitcoins.

In the wake of the placement, MARA shares rose significantly from around USD 18 to USD 26.03. A jump above the year's high of USD 27.30 in August would generate a strong buy signal with a short-term target range of USD 34.

Saturn Oil & Gas – Opportunities amid the correction

Donald Trump's victory in the US presidential election should benefit oil and gas companies in the long term. The Republican has little regard for renewable energies and instead wants to push ahead with LNG production from North America, particularly to Europe. Currently, oil prices are still in correction, which is creating favorable entry opportunities for many producers such as Saturn Oil & Gas. A peer group comparison clearly shows the undervaluation of the Calgary-based producer.

Thanks to recent acquisitions, daily production increased by 49% to 39,049 boe/d in the third quarter of 2024 compared to the same quarter of the previous year. Compared to the current year's second quarter, this represents an increase of 30%. Adjusted EBITDA reached a new high of CAD 135.8 million in the last quarter, an increase of 28% over the second quarter of 2024. This occurred despite a 9% decline in realized oil prices. Net income increased to CAD 101.6 million, equating to CAD 0.50 per share.

As a result of the decline in oil prices, the price of Saturn shares also fell to a low of CAD 1.95 but was bought up under high volume. The current price per share is CAD 2.29. The analysts at Ventum Capital Markets view the Canadian energy company as a strong candidate for significant growth due to its drastic undervaluation. In their latest report, they assigned a price target of 7.50 CAD with a "Buy" rating.

Qualcomm – Standing on its own two feet

The global market leader in mobile chips is planning for a future beyond Apple and is working to minimize dependencies more and more. Qualcomm showcased its strength and strategic direction during its Investor Day. The contracts between the giants, which determine the licensing of 5G modems to Apple, will run until 2027.

Meanwhile, CEO Christiano Amon is planning for the future outside of the smartphone business. By 2029, revenues of USD 22 billion are expected outside of this segment. The diversification strategy focuses primarily on the areas of PC chips, automotive and mixed-reality headsets.

Management sees enormous growth rates in the automotive chip sector and intends to increase its revenues tenfold by 2024, from USD 800 million to USD 8 billion. A large proportion of these revenues, around 80%, are already secured by contracts, with partners including major carmakers such as General Motors, which use Qualcomm technologies in their driver assistance systems.

Revenues are expected to increase further by an additional USD 4 billion through the IoT sector, with chips for industrial applications and smart devices. The Extended Reality (XR) sector, including chips for Metas Quest headsets and Ray-Ban sunglasses, is expected to contribute a further USD 2 billion. In the development of artificial intelligence, Qualcomm is positioning itself as a pioneer in the field of edge AI. This innovation makes it possible to run AI directly on devices instead of on cloud servers.

Despite the optimistic statements, the share price is hovering dangerously close to the current annual low of USD 151.39 at USD 156.79. A slide below this prominent mark will likely trigger further stop orders, which could push the price to the next support level at USD 146.46.

MARA Holdings is taking advantage of the boom in cryptocurrencies and issuing a billion-dollar convertible bond to expand its Bitcoin holdings. Qualcomm looks confidently toward a future beyond Apple. Saturn Oil & Gas has once again achieved a production record and is considered undervalued within the industry.