30. June 2021 | 12:07 CET
SAP, Barsele Minerals, BioNTech - Shares have no alternative
The USA is expecting growth of 7% this year and Germany is expected to grow by 3.7%. This growth is above the currently expected inflation. As an investor, you should not be afraid of 2023, even if the FED wants to raise interest rates twice by then. One can confidently assume that interest rates will rise marginally from this historically low level, and that, in turn, is a sign of economies with growth prospects. In addition, the boom in equities could last much longer due to major changes such as e-mobility, climate neutrality and the like. In times of significant changes such as industrialization, there were long-lasting bull markets in equities. Since bonds are still hardly yielding any returns, equities remain highly attractive.
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ISIN: SAP SE O.N. | DE0007164600 , BARSELE MINERALS | CA0688921083 , BIONTECH SE SPON. ADRS 1 | US09075V1026
SAP - Quarterly figures will set the tone
As experience shows, SAP is one of the first to present its quarterly figures, and it promises to be exciting. CFO Mucic recently warned about the exchange rates, which have deteriorated even further since the announcement of the first quarter. The euro's strength is weighing on the Group's results, as a large part of its sales are generated abroad. The other exciting question is whether SAP has managed to maintain the growth in its cloud business from the first quarter.
There is hope that the digitization wave unleashed by Corona will ensure full order books. The cloud strategy will also positively impact the medium term, as the Company can offer solutions for all business areas. The advantage of this is that the issue of cybersecurity, which is increasingly coming into focus, only has to be considered in one place, in the cloud structure. On the one hand, this reduces costs for the Group's customers, and on the other, it also leads to better customer loyalty.
SAP still earns most of its money from the license business, but cloud services are expected to catch up soon and become a profit driver. The CFO hopes for double-digit growth in earnings from 2023. The share is still in an intact upward trend and is attempting to break through the resistance at EUR 121 for the third time. If it succeeds, the next level is at EUR 135.
Barsele Minerals - A gold treasure
Barsele Minerals was an investment company until a few weeks ago. That changed on May 12 with a letter of intent to purchase Agnico Eagle's 55% stake in the Barsele project. The purchase price is USD 45 million, plus 14.9% of Barsele Minerals shares, 6 million warrants and 2% royalty. As a result, Barsele Minerals would be the sole owner of the proven gold deposit of 2.5 million ounces. The property is located in northern Sweden, covers 33,500 hectares, and has a long mining history. There are also active mines in the area.
The former partner has drilled over 400 drill holes totaling approximately 156,000 meters of drilling in recent years. From this, the resource estimate of 2.5 million ounces was produced. Barsele Minerals plans to drill another 30,000m in the main deposit area to prove even more gold over the next 18 months. A target of 3.5 million ounces has been issued. If successful, the site would be of interest to any gold producer globally, and the Company would be a potential takeover candidate. The transaction should be completed by the end of July, but this can be postponed by a month under certain conditions.
In addition to the main gold deposit, there is another area called the Norra Zone, which has massive volcanic sulfide and where Agnico has already shown promising samples. Management has a 25% stake in the Company and is vested in making this project fly. After the spike to CAD 0.82, the stock fell to around CAD 0.70 due to the announcement. Establishing a first position here could be worthwhile. If the goals are achieved, doubling is easily possible.
BioNTech - New study carries risks
BioNTech is considered the most popular vaccine and is made in Germany. Shareholders have been able to enjoy constantly rising prices since the start of the stock market. Every setback was used to buy. This is also thanks to the good news. Because despite all mutations, including the delta variant, the vaccine should help, as stated by Company founder Sahin at the recent Annual General Meeting. The Company is constantly analyzing its effectiveness against new mutations.
In addition, the failure of competitor CureVac means one less competitor on the market for now. Since the middle of last week, the upward trend has stopped, which is due to media reports assuming that the vaccine will be effective for a long time. The status so far was that one would probably need a booster every 6 months. A study published in Nature magazine assumes much longer protection, which would mean fewer vaccine sales.
Separate from this, one must consider the wide range of other drugs in development. Twenty-two are currently in the pipeline. The vaccine has paved the way for breakthroughs in a wide range of diseases. Against this backdrop, the stock is a value with a lot of imagination. Nevertheless, one must expect setbacks, as in the discussion about the cancellation of the patents. Currently, one should look at the further course, as the study could cause uncertainty.