29. October 2020 | 13:19 CET
SAP, Triumph Gold, JinkoSolar - Mutti blows to get started!
It seems done. Yesterday afternoon, the German Chancellor Angela Merkel (German nickname: Mutti) decided on the second lockdown of this year due to the vastly increasing number of cases in the Corona Pandemic. Although this lockdown is supposed to be somewhat "lighter and more social" than the first, it is causing uncertainty among the population and the capital markets. It remains to be seen whether the stock markets will reach a new low after the experience in spring, or whether they will only get shaken vigorously for a short time. Should the worst-case scenario occur, the central banks with their money printing machines will undoubtedly be ready again. So a second chance to get started? In any case, keep an eye on gold stocks.
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ISIN: CA8968121043 , DE0007164600 , US47759T1007
Chance from the second row
After the gold price reached its high of over USD 2,030.00 in early August, it has since corrected at a high level of around USD 1,900.00. Uncertainties due to the pandemic, the US elections - which will be finalized on November 3, and the high national debt, should provide the precious metal with a further tailwind. Triumph Gold, a growth-oriented Canadian gold exploration and development Company with a large land package in the mining-friendly Yukon, has also returned to lower price level. While the value in the summer of 2019 was still at CAD 0.72, the current value is only CAD 0.22. The market capitalization is the equivalent of almost EUR 20 million.
Recently, the Canadians announced that it had completed the fully funded exploration program PR20-07. This program included minor trenching and reconnaissance sampling as well as 2,068 metres of diamond drilling. The partially near-surface surveys are now in the evaluation and analysis phase. According to Jesse Halle, Vice President of Exploration, several of the reconnaissance samples collected indicate that gold mineralization is much more widespread than previously thought. As a result, the 2021 exploration program will expand.
Conflicting quarterly figures!
SAP would have expected the third quarter figures to sound similar to those of its competitor, Microsoft. After all, it was precisely the cloud business that helped the US Americans to achieve a leap in profits because of the Corona pandemic. In the past financial quarter, which lasted until the end of September, profits increased by 30 percent year-on-year to USD 13.9 billion. Revenue grew by twelve percent to USD 37.2 billion. "Demand for our cloud offerings led to a strong start to the financial year," said Amy Hood, CFO of Microsoft.
Disappointment all along the line
Microsoft's joker, the Cloud business, was responsible for the weak results of the Walldorf-based Company, which felt the full force of the crisis at SAP. The plan for the Cloud Division was for sales of EUR 8.3 to 8.7 billion, but now the figure is still EUR 8 to 8.2 billion.
Analysts lower targets
The development of the former model Company was also incomprehensible to the analysts. Goldman Sachs, for example, took the Walldorf-based Company off the "Conviction Buy List" and lowered its price target from EUR 160 to the current EUR 120. JP Morgan kept the value at "neutral" and left the price target at 120 EUR. The attempt by Hasso Plattner, former CEO and current Supervisory Board member, to support the share price at around EUR 100 by purchasing SAP shares with a value of EUR 250 million failed, for the time being. The share is currently still in free fall at just under EUR 94.
One of the world's leading companies in the photovoltaic industry, JinkoSolar, was forced to give up feathers despite a buy recommendation from the leading Swiss bank. The target price was raised to USD 55. However, this means that the current share price of 57 USD is still above the target price. The quarterly figures announced for today should be exciting. In any case, there is no way around investing in solar stocks in the future.