31. March 2020 | 08:35 CET
Saturn Oil & Gas, Wynn Resorts, Zoom Video - The Big Long!
The curfews and avoidance of social contacts in connection with the current Corona Crisis have severely restricted social and economic life. Cars are no longer moved, at most for shopping. Visiting friends and family is taboo. Those who have a systemically important job still drive to work by car at best, in order to avoid the risk of infection from public transport. The prices for petrol and diesel are in the low range, but don't matter if you don't drive anyway. More than filling up the tank is not possible. Hotels are empty and conversations are shifting to the Internet. Life is changing - more than ever.
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ISIN: CA80412L1076 , US9831341071 , US98980L1017
ESG in focus
Saturn Oil & Gas is a young oil company from Canada that was established three years ago as part of a realignment. The company has set itself the goal to be one of the most environmentally friendly oil producers. Canada is already one of the countries with the strictest environmental regulations for oil production, but Saturn Oil & Gas also wants to set new standards in the industry.
That's why the company recently announced that dynaCERT CEO Jim Payne has joined the Board of Directors. dynaCERT's HydraGEN Technology lowers the consumption of diesel engines and reduces the emission of pollutants. The trucks and diesel generators offer enormous savings potential.
Hedging creates room for maneuver
Saturn Oil & Gas announced last week that through a hedge, half of its current production has been sold at over CAD 65.00 per barrel until February 2021. Many competitors might envy the management for this strategic step now. The price of WTI is currently quoted at around USD 20.00 per barrel.
In addition to the decline in demand in connection with the Corona Pandemic, the disagreement between Russia and Saudi Arabia is creating a production overhang, which has exacerbated the decline in the price of oil. However, these games are likely to come to an end in the foreseeable future, as none of the producing countries has any medium or long-term interest in low oil prices. The revenues from the sale of oil are an important source of income for many countries. It will therefore only be a matter of time until the price per barrel will again be quoted at over USD 50.00 per barrel.
Winners and losers
The restriction of freedom of movement also affects Las Vegas. One of the most famous addresses on the Strip is the Wynn Resort. The Nobel Hotel has closed due to the Corona Pandemic and the share price of the company went down after the announcement of the temporary shutdown. Las Vegas has already experienced a lot and so there will also be a time after Covid-19.
Meanwhile, the business of Zoom Video Communications is running at full speed. The provider of video conferencing is currently used by many companies and for private events to make conversations as personal and online as possible.
The Big Long for Post-Corona
The market capitalization of Saturn Oil & Gas is currently approximately CAD 21 million. About 18 months ago the company's value was still over CAD 60 million. The value of Wynn Resorts has fallen to USD 6.6 billion in recent weeks. Zoom Video Communications has now risen to a value of over 41 billion USD. In a few days or weeks, the Corona Crisis will become less important and in this context it is already worth thinking about investments today. Due to the increase in money supply and the various rescue measures, the time after the pandemic can be accompanied by a share price fireworks.