Close menu




December 1st, 2020 | 09:32 CET

SAF-Holland, ElringKlinger, Almonty: cyclical for the year-end rallye

  • Investments
Photo credits: Almonty Industries

Prices are picking up once again: Vaccination hopes and the recovery of the global economy are boosting cyclical stocks, in particular, such as the automotive industry. However, base metals are also considered a good bet in times of economic upswing. But one after the other. The shares of SAF-Holland, the commercial vehicle and camping equipment supplier, rose by more than 40% on a one-year horizon. In the past few days, it still grew by more than 7% despite a minor consolidation. While the stock was still considered a beneficiary of the trend toward camping trips after the initial lockdown, the hard facts are now providing price fantasy. When the economy is booming, commercial vehicles will be needed again, according to the market.

time to read: 2 minutes | Author: Nico Popp
ISIN: CA0203981034 , DE000SAFH001 , DE0007856023

Table of contents:


    SAF-Holland and the advance praise

    SAF-Holland presented weak figures for the first half of the year, losing ground in all regions and across all business units, particularly in the wake of the pandemic. However, necessity is the mother of invention: The Company cut costs in sales and administration and made diligent savings. Nevertheless, the outlook remains subdued.

    SAF-Holland's shares are one of those cyclical stocks that are not yet really on track operationally. The price gains on the market are mostly early praise. The value may be interesting for gamblers, but those who are looking for substance are better to wait a little longer.

    ElringKlinger: 75% in one month

    The ElringKlinger share is likely to be even more in the focus of speculative investors. The specialist for cylinder-head gaskets and other parts relating to engines, transmissions and exhaust systems, is the epitome of the German supplier: its products are of a high standard and rightly in demand worldwide. However, classic engines are also a thing of the past. For this reason, too, ElringKlinger's shares were worth just EUR 3.80 in mid-March. But these times are over: Today, the share is quoted at around EUR 13.

    Last month alone, the share price rose by a breathtaking 75%. But how long has this trend been going well? With share price rallies of this kind, the principle quickly applies: "The last one bites the dust." Hardboiled gamblers should secure positions and continue to observe the situation on the market. If the mood remains rosy, even automotive suppliers can be good for a few percent.

    Almonty represents tungsten outside China

    One share that is also related to the automotive industry in a broader sense is that of the tungsten producer Almonty. The Company operates two tungsten mines in Spain and Portugal which is a ray of hope given the market dominance of China. China supplies around 80% of the world's tungsten production. The industrial metal is used, for example, in filaments in car windows, where it ensures that these can be heated and freed from ice. Tungsten also plays a role wherever corrosion protection is essential, for example, in chemical plants. Furthermore, tungsten in alloys ensures that these become heat-resistant. Tungsten is therefore also used in engines.

    In addition to the two existing mines in Southern Europe, Almonty has already begun building its mine in South Korea. Once complete, 30% of non-Chinese tungsten production will be extracted from here. Production at the Sangdong mine is scheduled to start in 2022. Almonty is collaborating with Deutsche Rohstoff AG and intends to advance the project rapidly. The preliminary work is currently ensuring that Almonty is in the red, but this is likely to be temporary. The market is presently interpreting the situation similarly: the share has bottomed out in the range of EUR 0.40.

    Base metals attractive looking to 2021

    Given the dizzying heights to which cyclical stocks such as automotive suppliers have risen, Almonty's stock currently seems anything but overbought. Although Canadian mining stocks are often under pressure in December in the wake of tax-driven sales, base metals stocks could offer opportunities in a friendly market environment looking ahead to 2021.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by André Will-Laudien on January 31st, 2023 | 14:50 CET

    E-mobility 2023: The Tesla hunters are coming! BYD, Lucid Motors, Tocvan Ventures. Will the Varta share now also fly?

    • Mining
    • Gold
    • Electromobility
    • Investments

    It Is hard to believe! The Tesla share is once again making a name for itself. Analysts went into the presentation of the annual figures with cautious expectations because there were many negative rumors surrounding Elon Musk's electronics company: Fewer sales? Cars on stockpile? Again, it came as no one had expected it. Elon Musk delivered and simultaneously mocked all the shorties who wanted to push his stock below USD 100 at the turn of the year. This gambit went badly wrong because Tesla was able to deliver even better figures than expected, and there was no stopping the share. With plus 70% in only 4 weeks, the Tesla share belongs to the shooting stars since the turn of the year - the short sellers must have lost their desire completely. But the variety of interesting shares is significant. Where are the opportunities for e-investors lurking?

    Read

    Commented by Nico Popp on January 31st, 2023 | 14:33 CET

    This new project changes everything: Deutsche Bank, Aspermont, Alibaba

    • Digitization
    • Innovations
    • Technology
    • Investments

    When processes go digital, great opportunities arise: automation and scaling can ensure growth and turn established business models into high-flyers. But which companies should investors actively support in their transformation? Where is there real potential for investors, and where are companies just spreading buzzwords? We highlight three stocks for you.

    Read

    Commented by André Will-Laudien on January 30th, 2023 | 09:13 CET

    Mega biotech rally 2023! Defence Therapeutics, Bayer, BioNTech, Morphosys - Where to put the money?

    • Biotechnology
    • Cancer
    • Covid19
    • Investments

    Who would have thought it? Since the beginning of the year, the stock markets have been jubilant despite difficult predictions about the economic trend in 2023. High inflation and rising interest rates are not a good breeding ground for the popular biotech stocks because they have to constantly refinance their research expenses. As the risk fee is readjusted as costs rise, investors demand higher premiums for providing money. However, some biotech stocks have taken off since the beginning of the year despite adverse conditions. What is their secret?

    Read