Close menu

June 2nd, 2022 | 11:45 CEST

Shares before the breakthrough! News at Salesforce, Barsele Minerals and Rheinmetall

  • Gold
  • defense
Photo credits:

The number season is coming to an end. SAP's competitor Salesforce was one of the last to report and shone in the outlook by raising its annual forecasts. The order books of defense contractor and automotive supplier Rheinmetall are also more than full at the moment. Although another major order has been added, the share price is reacting only slightly. The situation is similar for gold mining stocks. Despite excellent conditions and undervalued assets, prices continue to correct - a long-term, anticyclical entry opportunity.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: SALESFORCE.COM DL-_001 | US79466L3024 , BARSELE MINERALS | CA0688921083 , RHEINMETALL AG | DE0007030009

Table of contents:

    Gary Cope, President and CEO, Barsele Minerals
    "[...] We are convinced that we could already leverage significant potential with a drilling program of around 35,000 meters. However, to finance this, we need a decision. Fortunately, there are already interested parties who can imagine advancing Barsele together with us. [...]" Gary Cope, President and CEO, Barsele Minerals

    Full interview


    Major order from the automotive sector

    All that can currently be heard on the premises of Rheinmetall Platz 1 in Düsseldorf is jubilation and champagne corks popping. Following the agreement reached between the CDU/CSU government on the EUR 100 billion special fund for the German Armed Forces, Germany's biggest defence contractor, Rheinmetall, is likely to be awarded a large slice of the pie. Weeks ago, Rheinmetall CEO Armin Pappberger already issued a corresponding list for the supply of tanks, helicopters and ammunition worth EUR 42 billion for the Bundeswehr. Of course, no one knows yet how much of this will actually be packed into actual orders.

    In addition to the defense sector, the Düsseldorf-based company is an international technology group for mobility and security. For example, a major order from a German premium car manufacturer for secondary air systems was announced yesterday. According to Rheinmetall AG, the total order value is in the mid three-digit million euro range. Between 2025 and 2032, the Automotive Emission Systems business unit of Rheinmetall's Sensors and Actuators division will produce over 4 million blowers and more than 4.5 million valve modules for secondary air systems, as well as fulfilling further development services for customer-specific adaptation.

    There were no significant fluctuations in the share price after the agreement on the special fund or after publication of the major order. The share lost momentum after the steep rise. The relative strength indicator and the trend following indicator MACD gave a fresh sell signal. The first short-term correction target would be the March high at EUR 162.95.

    Explosive environment

    Gold is in correction mode despite the geopolitical situation. Accordingly, the change in the monetary policy of the US Federal Reserve, which announced several interest rate steps this year, is proving to be a brake. However, this increases the risk of a recession. Further interest rate hikes would further slow down the already sputtering growth engine. Thus, the Fed has little room for manoeuvre to make more significant hikes. However, the situation is even worse in the eurozone, where the ECB is still sticking to its historically low key rate of 0%. Although calls for a stricter monetary policy are growing louder, the European monetary guardians remain inactive. Given the high debt levels of the southern EU countries, in particular, this is not too much of a surprise. A rapid, stronger sequence of hikes could bring down a house of cards.

    Barsele Minerals with treasure in Sweden

    From a portfolio diversification perspective alone, around 10% of the total value should be in precious metals. In addition to buying physical coins and bars, shares of gold producers or exploration companies are also suitable. An investment in Barsele Minerals would also have an advantage in terms of geographic diversification. The Barsele project of the same name is located in the mining region of Västerbottens Län in northern Sweden, 600km north of Stockholm and covers 34,500 hectares in the Fennoscandian Shield. Here, the Belcarra Group-led company, with a 45% ownership interest, is a junior partner in the joint venture to develop the Barsele Gold Project.

    Senior partner Agnico Eagle, with a 55% interest, is conducting and financing exploration on the property. In recent years, Agnico Eagle, as the operator, has advanced exploration and drilled approximately 155,000m, with a total of 404 drill holes completed. In 2019, Barsele released a resource estimate of 2.41 million ounces of gold. The next target is to achieve a resource estimate of 3.5 million ounces through a further 30,000m drill program. The planned acquisition of Agnico Eagle's stake by the Canadians failed in recent months, but the issue is likely to be revisited in the coming months. Looking at the stock market value of Barsele Minerals of EUR 24.76 million, the glaring undervaluation comes to light. Back in 2016, the Royal Bank of Canada valued the project at USD 375 million at a gold price of USD 1,350 per ounce.

    Salesforce exceeds forecasts

    The first-quarter results season is slowly drawing to a close. SAP competitor Salesforce was another company to significantly beat its forecasts. In the first quarter, sales climbed 24% YOY to USD 7.41 billion. However, profits slumped from USD 469 million a year earlier to USD 28 million. Analysts, however, expected even greater downturns.

    For the full year, the US company held out the prospect of higher profits. Thus, earnings per share are expected to hit a range between USD 4.74 and USD 4.76. Experts are expecting an EPS of USD 4.68. On the other hand, in the case of sales, the signs are reversed. While analysts on average expect revenues of USD 32.08 billion, Salesforce expects between USD 31.7 billion and USD 31.8 billion.

    Following the figures, the major Swiss bank Credit Suisse repeated its "outperform" investment rating but lowered its price target from USD 375 to USD 315. Currently, the share price is just under 45% below the price target at USD 160.24.

    While Rheinmetall's share price is not reacting upwards despite the agreement on the special assets of the German Armed Forces as well as a large order, a major correction could be imminent. In contrast, Salesforce's strong quarterly numbers should provide momentum. Barsele Minerals has an undervalued asset in its portfolio with its stake in the Barsele project in Sweden.

    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 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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by Fabian Lorenz on March 30th, 2023 | 13:19 CEST

    Panic at Vonovia and Plug Power - Barrick Gold and Tocvan Ventures shine

    • Mining
    • PreciousMetals
    • Gold
    • fuelcell
    • RealEstate

    Concrete gold? Real estate stocks are currently in an absolute panic. The share of Germany's industry leader Vonovia recovered somewhat yesterday, but an end to the downward slide is not in sight. Analysts are also skeptical. The range of price targets is broad, and there is already speculation about an (emergency) capital increase. So buy or sell? The Plug Power share could also use some buying. From a chart perspective, the situation is critical. Fuel cells for smaller forklifts are now being offered. The situation is different at Barrick Gold. The group's share is about to break out to the upside. Price targets for gold of USD 3,000 provide for a good mood. Tocvan Ventures should also benefit from this. The gold and silver explorer published news about its project in Mexico yesterday, and the stock is waking from its slumber - there appears to be further air to the upside.


    Commented by André Will-Laudien on March 29th, 2023 | 08:30 CEST

    Copper massively missing - what to do? Nordex, Orestone Mining, JinkoSolar - Greentech shares in the focus of investors

    • Mining
    • Copper
    • Gold
    • GreenTech
    • Technology

    The energy transition in Europe can only work if critical metals such as copper, lithium or nickel remain available. For an almost complete electrification of road traffic from 2035 onwards, quantities of copper 3 to 7 times the current consumption are required. At present, however, hardly any new mines are coming on stream. It will therefore be exciting to see which copper source the EU will soon tap in order to supply industrial sites with the coveted metal. So the EU Council of Experts should urgently look for a few mining consultants and have the current decisions verified by the Fairy Tale Department. How do we manage it after all?


    Commented by Stefan Feulner on March 27th, 2023 | 09:31 CEST

    American Lithium, Blackrock Silver and Standard Lithium - Lithium is increasingly scarce

    • Mining
    • Silver
    • Gold
    • Lithium
    • Uranium

    Lithium-ion batteries are the most common battery technology for electronic devices, electric vehicles and energy storage due to their high energy density and long life. In addition, the critical metal is used in the aerospace industry, medical technology and metal processing. Demand is rising dramatically, while supply can hardly keep up, mainly due to the mobility shift. Producers of the scarce commodity will undoubtedly emerge as the beneficiaries of this overhang in the future.