Close menu




May 23rd, 2022 | 11:42 CEST

Share sell-off: TUI, Barsele Minerals, Nel ASA - Buy or sell these stocks?

  • Gold
  • Investments
  • Hydrogen
  • travel
Photo credits: pixabay.com

The sell-off in equities entered a new round in May. With rising inflation, disrupted supply chains and uncertain energy supplies, the risk for investors is increasing as interest rates are now exploding to unprecedented levels in parallel with the highly volatile environment. The 10-year yields on government bonds in Germany and the USA have moved up from near zero to 1.14% and from 1.5% to 3.12%, respectively. Whenever there was a noticeable rise in interest rates for bonds, things became critical on the stock market. At the moment, this is weighing on technology stocks in particular. The DAX and S&P have already lost 20% in the current correction phase. After initial losses, gold is now accelerating. Where are the opportunities for investors?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: TUI AG NA O.N. | DE000TUAG000 , BARSELE MINERALS | CA0688921083 , NEL ASA NK-_20 | NO0010081235

Table of contents:


    Nel ASA - The hydrogen pearl of the North

    The Ukraine crisis shows the vulnerability of the European energy policy. Continuing as before not only jeopardizes supply but also political stability in Europe because a permanent doubling of energy prices would put an extreme strain on purchasing power and future growth. The sooner the EU switches to renewables, the sooner it will regain control of its own energy system. The energy renewal plan recently unveiled by the EU Commission called "REPowerEU" is a bold initiative. It will cost around EUR 300 billion.

    Nel ASA is one of the hydrogen protagonists and fits well into the "REPowerEU" plan. With the recently reported figures for the first quarter, Nel was not quite able to meet analysts' expectations for sales, but a look into the future promises further growth. The order book climbed by 19% to a new record level of NOK 1.29 billion. A successful private placement of NOK 1.5 billion means that Nel is still sitting on a comfortable cash position of a total NOK 3.9 billion.

    Even if Nel's figures were disappointing at first glance, market participants should not lose sight of the high investments in the future technology "hydrogen" against the backdrop of the overall political situation. Nel is able to land large orders consistently, and the further essential development of the technology is thus secured. The share price is now down almost 30% on a 12-month basis and has already corrected more than 65% from its high. The current valuation based on estimated sales (P/S) for 2022 of approximately NOK 1.2 billion is still ambitious at a factor of 16. Buy in weakness!

    Barsele Minerals - A promising investment in Sweden

    Those looking for stability for their portfolio should look at the current gold spot price after the last correction. Because after a steep rise to USD 2,072 at the time of Russia's invasion of Ukraine, the yellow metal has now corrected considerably. The current price of USD 1,844 is once again giving a positive signal in the long-term upward trend.

    Mining has been going on in Scandinavia for centuries, as the large area and the very sparse population offer a good location for mining. In the international race for critical metals, Sweden, in particular, is well-positioned because its deposits of rare raw materials and energy sources are outstanding compared to Europe, which is otherwise relatively poor in raw materials. Due to a friendly jurisdiction, it is also possible for smaller mining companies to implement suitable exploration projects.

    In the mining region of Västerbottens Län in northern Sweden, we have come across a promising project with the Canadian Company Barsele Minerals. Within the polymetallic deposits indexed on 34,500 hectares, a resource estimate of 2.41 million ounces was already carried out in 2019. Under the management of the successful Belcarra Group, drilling will continue in 2022. The project is currently still 55% owned by the major Agnico Eagle. With their assistance, 155,000 meters of drilling program have already been completed. Also striking about the deposit are the deposits in metals such as lead, zinc and nickel. These materials are still in demand for the e-mobility and high-tech industries and add value to the property.

    The Canadians have indicated that they would also like to take over the remaining 45% of the project. As is usual with such promising claims, the back-and-forth tactics of the shareholders will probably take some time until a price acceptable to both sides has been found. At present, this is still speculation, but it is precisely this that gives the Barsele share its great charm. With a market capitalization of EUR 32 million, the share is far below its intrinsic value.

    TUI or Lufthansa - Who has the better balance sheet for a turnaround?

    Opinions differ when looking at the charts of TUI and Lufthansa. Both shares have been badly hit by the Corona pandemic. Only with emergency aid from Berlin were the two companies saved from the threat of illiquidity in 2020/2021. Lufthansa has already repaid most of the aid, and TUI is now in the process of its third capital increase to repay the silent partnership contributions from the German government.

    However, in the case of TUI, this debt relief process is fraught with significant risks. This is because the German-British travel group raised EUR 425 million overnight from a number of institutional investors. Some 162.3 million new shares have been placed at a price of EUR 2.62, representing 10% of outstanding shares. The proceeds and further cash will now be used to repay one of the two silent participations of the state Economic Stabilization Fund (WSF) with a volume of EUR 671 million. The major Russian investor Alexei Mordashov is currently unable to participate in a capital increase. He owns a good 30% of the Company but ended up on the EU sanctions list at the end of February.

    If you put the two shares side by side, Deutsche Lufthansa seems to be doing its homework better. The share price has at least been able to stabilize at the EUR 6.8 line since the last dilution. In the case of TUI, the current action initiated another crash towards EUR 2.43, and the low at EUR 2.30 is not far away. Both shares are struggling with major defaults in their business and extreme increases in the cost of their services. Whether this will lead to profit increases remains questionable. Nevertheless, both shares are attractive for momentum trading, but we expect the medium-term turnaround to be more likely in Lufthansa.


    The volatility of stocks is currently over 30% on an annual basis. It makes long-term investment decisions difficult and short-term speculation attractive. Nel ASA, TUI and Lufthansa are fluctuating quite a bit at times. Barsele Minerals has access to prime property in Sweden with excellent prospects.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    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



    Related comments:

    Commented by Fabian Lorenz on July 18th, 2025 | 07:00 CEST

    20% in one week! Steyr Motors, Zalando, and Globex Mining shares!

    • Mining
    • Gold
    • Commodities
    • Retail
    • Automotive
    • Defense

    Comeback for Steyr Motors. After a share price explosion in March and the subsequent crash, things had quietened down around the share. However, operations appear to have continued at full speed. Things could get interesting on July 31. Globex Mining also seems to be poised for a comeback. After doubling around the turn of the year, the mining incubator's shares corrected. However, with positive news flow and continued strong gold prices amid a commodities boom, the chances of renewed gains look promising. In Germany, retail is not exactly booming. Zalando is countering this with the takeover of its competitor ABOUT YOU. The transaction has now been completed. Will the share price rise now? Analysts certainly see considerable upside potential.

    Read

    Commented by Fabian Lorenz on July 17th, 2025 | 07:00 CEST

    300% share Almonty Industries: What is next? Strategic partnerships like MP Materials?

    • Mining
    • Tungsten
    • Defense
    • Investments

    Following its NASDAQ listing on Monday, things have quieted down somewhat for high-flyer Almonty Industries - a healthy pause after a year-to-date rally of over 300%. This may even present a buying opportunity or a chance to increase positions. The tungsten gem is likely to generate significant positive news flow in the coming months, including the production start at its tungsten mine in South Korea, new analyst coverage, and possibly even a strategic partnership, similar to what MP Materials achieved. The latter recently made headlines with a US government investment and a partnership with Apple. Although tungsten is not classified as a rare earth element, it can be considered just as critical for defense and high-tech applications.

    Read

    Commented by André Will-Laudien on July 16th, 2025 | 07:20 CEST

    Does Trump love hydrogen after all? The sector is celebrating! Plug Power, Nel, dynaCERT, and MP Materials are in rocket mode

    • Hydrogen
    • greenhydrogen
    • renewableenergies

    Global pressure to reduce climate-damaging emissions is growing, and the hydrogen sector is increasingly coming into focus. Although US policy under Donald Trump does not prioritize climate protection, Europe and Asia are resolutely pushing ahead with the transformation in mobility, logistics, and mining. Hydrogen technologies offer enormous potential here, especially in the heavy-duty sector. Innovative providers such as dynaCERT are focusing precisely on this area with tried-and-tested solutions for reducing emissions and increasing efficiency. The technologies are mature and ready for use, global demand is rising, and decision-makers are under growing public pressure to support sustainable alternatives. The sector remains relatively quiet, but with a bit of industry rotation, the pendulum could swing quickly in the other direction.

    Read