Recent Interviews

Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".

Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".

John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)


Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"

09. September 2021 | 12:49 CET

Royal Dutch Shell, Saturn Oil + Gas, Steinhoff: From 17 to 51 - Triples sought!

  • Oil
Photo credits:

Investing in shares consists of striving for a return on the capital invested. In recent months, there have been many stocks that have increased tenfold in price. However, only few investors had persevered. If one lowers one's targets somewhat and still maintains a reasonable profit expectation, even a threefold increase could bring great joy. We take a look at three stocks that stand at just under 17 today and calmly consider whether a 51 could be possible. Impossible, you say - Possible, we say!

time to read: 4 minutes by André Will-Laudien

Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview



André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author

Royal Dutch Shell - At EUR 17 just at book value

One of the largest private oil companies is the British-Dutch Royal Dutch Shell (RDS). In the first pandemic downturn in Q2-2020, the share price fell to around EUR 10 as global lockdowns were expected to cause a sharp economic downturn. In that quarter, RDS produced a loss of USD 18 billion. With the significant increase in oil and gas prices, Shell is now clearly back in the black, although supply chains disrupted since the pandemic still do not allow for old sales levels. However, net profit has already turned around to a plus of USD 3.4 billion, which means that Shell can pay out higher dividends again and think about debt repayment.

The US bank JPMorgan has left its rating for Shell on "Overweight" with a price target of 2200 pence equivalent to EUR 25.60. Investors should be optimistic about the third quarter in the European oil sector, analyst Christyan Malek wrote in a recent industry report. The oil giant's A-share has already gained 70% from the October low and has been consolidating at the EUR 17 mark for 4 months. RDS is unlikely to triple, but with a price-to-book ratio of 1, a P/E ratio of 8 and a dividend yield of 4%, the cards look good for medium-term appreciation.

Saturn Oil & Gas - At CAD 0.17, plus 200% is not witchcraft

Those looking for undervaluation are more likely to find it in the case of Saturn Oil & Gas from Calgary. The Company, which was still relatively small at the beginning of 2021, managed a mega-deal in the middle of the year and took over the Oxbow property, which is 20 times as large with 6700 barrels of daily production.

Paving the way for this acquisition was, of course, the persistently low WTI price in 2020, between USD 30 and 50 per barrel. The discounting models thus allowed for a moderate purchase price. The completed acquisition has turned Saturn Oil & Gas into a completely new company, with high cash flows and a permanent ability to self-finance projects. While the deal cost Saturn Oil & Gas CAD 93 million, it brings vast oil reserves and a massive production volume from the start. The undeveloped well fields also mean good opportunities for regenerating production output over the next few years.

Saturn Oil & Gas now has a drilling area of 30 square kilometers. There are 350 wells, of which we count 260 booked locations with certified reserves. Proven or probable reserves in the area are 43 million barrels. In today's prices, this corresponds to an undiscounted value of USD 2.8 billion.

Based on the daily production rate, with the reserves mentioned above and a current profit per barrel of around CAD 30, there is enormous profit potential over the next few years, as the liabilities from the acquisition are expected to be paid off as early as mid-2023. At the current production rate, debt will already have been reduced by CAD 70 million by the end of 2022, equivalent to about 60% of existing borrowings. A significant part of the financial planning is based on forward sales, so the balance sheet quantum leap is already easy to calculate.

The stock exchange had to evaluate the financing details in recent weeks, and the actual value of the new Company is now coming to light. With a price of CAD 0.17, Saturn's market capitalization has reached CAD 85 million. However, the sum-of-the-parts valuation and the discounting of future cash surpluses deliver an intrinsic value per share of approx. CAD 0.50, which would correspond to a market value of CAD 255 million. So if you use a sharp pencil, you will be served a triple on a platter. The Saturn share is highly liquid in any order of magnitude, with daily trading volumes of 3-7 million shares.

Steinhoff International - 17 cents and strong fluctuations

Finally, a highly liquid second-tier stock that has been traded on the stock exchange as an insolvency paper for a good 3 years now. It is the furniture retailer Steinhoff International based in South Africa. The German-South African Group is still in dispute with various creditor groups, but the back and forth is likely coming to an end. The foggy veil on how and whether the Company will continue is increasingly clearing.

The Company's 4.27 billion shares in circulation are currently fluctuating wildly, as the creditors' meeting planned for Sept. 3, 2021, on a settlement proposal with which the Group intends to resolve disputes arising from the billion-dollar accounting scandal has again been postponed by a few days. The proposal has already received approval in exploratory talks among some financial creditors but now still needs to be officially ratified by a vote of all invited claimants. But new vetoes from various stakeholders keep coming. If the settlement proposal is approved at the third meeting, the continuation of operations will be secured in the medium term. So far, so good!

In the last few days, the share price started to climb, jumping from EUR 0.12 to over EUR 0.20, then down again to EUR 0.07, and most recently hovering around EUR 0.17. Despite the euphoria, investors should remember that Steinhoff has been running at a loss in recent years, and the fundamentals are still extremely weak. And after all, the market capitalization is over EUR 700 million. Whether a quick triple to EUR 0.51 is lurking here is something we confidently leave to the many speculators, who go wild with every invitation to the creditors' meeting. Steinhoff is and remains a casino stock!

The stocks considered here offer a differentiated spectrum of opportunities. Royal Dutch Shell is a solid dividend stock. Steinhoff is a highly speculative lottery ticket for better times. In Saturn Oil & Gas, the facts are on the table in the best manner, and the story just needs to get going. It is, therefore, the clear triple candidate among the three companies mentioned.


André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author

Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.

Related comments:

16. September 2021 | 13:17 CET | by Stefan Feulner

FuelCell Energy, Saturn Oil + Gas, Gazprom - The Renaissance of fossil fuels

  • Oil

There is no question that Germany has already achieved a great deal in terms of climate protection. In 2020, about 45% of its electricity came from renewable sources. However, the goal of becoming greenhouse gas neutral by 2045 is still a long way off. For this plan to become a reality, wind power still needs to be expanded significantly. The first half of the current year shows that it will not be possible to do without fossil fuels in the coming years. According to calculations by the Federal Statistical Office, over 56% of the total 258.9 billion kWh of electricity generated in Germany came from conventional sources such as coal, natural gas and nuclear energy.


13. September 2021 | 11:47 CET | by Armin Schulz

Bayer, Saturn Oil + Gas, TUI - Which share will be the first to take off?

  • Oil

We have often heard that the profit is in the purchase; however, it is difficult to predict the low of a share and then enter at that low. Often it is better to wait for a reversal using charting techniques, which increases the probability of finding a profitable trade. Those who buy falling knives have certainly suffered losses more often. But there are always stocks that are not "in" with investors, so it takes longer to get the share price going. Especially companies that have had problems in the past must first regain the trust of their shareholders. Today we analyze the prospects of three companies that have had problems in the past and want to take off.


13. September 2021 | 10:41 CET | by Nico Popp

K+S, Deutsche Rohstoff, Barrick Gold: How investors profit from inflation

  • Oil

Prices are rising and rising! In August, inflation rose more sharply than at any time in the last 28 years. It rose by an average of 3.9% compared with the same month of the previous year. The main price drivers were food and energy commodities. But other products and services are also becoming more and more expensive. Here is how investors can take this trend into account in their portfolios.