Close menu




August 9th, 2022 | 10:22 CEST

Split fantasy: Amazon, Alphabet, Viva Gold, Tesla - Shares with top prospects!

  • Mining
  • Gold
  • Technology
  • Investments
Photo credits: pixabay.com

Now the tide has turned again. The crash hysteria has disappeared, and bond prices are gradually recovering. The yield for 10-year German government bonds fell in the last 6 weeks completely surprisingly from the high at 1.75% to under 0.90% - that does not look like a boom. The specter of inflation is also slowly losing its scare, with oil prices now consolidating by more than USD 25 from their recent highs. The pressure on central banks to raise interest rates is thus easing considerably, giving equities the necessary room for positive momentum again. We take a look at promising stocks.

time to read: 5 minutes | Author: André Will-Laudien
ISIN: AMAZON.COM INC. DL-_01 | US0231351067 , ALPHABET INC.CL C DL-_001 | US02079K1079 , VIVA GOLD CORP. | CA92852M1077 , TESLA INC. DL -_001 | US88160R1014

Table of contents:


    Gold and equities defy the weak euro and inflation

    The European single currency has undergone its greatest devaluation in over 10 years. It has lost a full 20% against the Swiss franc since March 2018 and a whopping 25% against the US dollar over the same period. Gold, on the other hand, has gained over 40% in the last 5 years. So those who have held gold for several years turn out to be clear winners against the low-interest rate environment of the past few years. However, those who had kept their Euros in their bank accounts experienced a real negative interest rate for years and recently even had to accept inflation rates of 8%, broken down to daily consumer goods of more than 25%. Stocks in Germany barely rose from January 2018 until today, but the S&P 500 index still performed by more than 60%. So experience shows that investing in precious metals and international diversification to equities and real estate promises the greatest long-term value preservation.

    Amazon and Alphabet - Great performance after the split

    Blockbuster stocks listed on NASDAQ with market capitalizations in the trillions are also always in focus. These include Apple, Amazon, Alphabet, Microsoft and Tesla. All stocks have enjoyed meteoric share price growth over the past 5 years, as they are considered the undisputed market leaders in their segment.

    Apple's shares have been split five times since 1987. The number of shares has reached 16.070 billion after the last distribution of bonus shares. At a share price of around USD 157, the Company is worth USD 2.52 trillion today. Due to the weak EUR development since the beginning of the year, Apple shares are up 31% on a 12-month basis and were also recently able to iron out all losses from the Russia discount in March.

    The two most recent splits concern Amazon and Alphabet. Both companies had increased their number of shares by 20 times. As a result, the heavy USD 2500 stocks on the stock market have now become stocks trading in the EUR 100 range. Shooting star Amazon was quoted at EUR 115 on the day of the split and swung up to EUR 139 in the last few days. On a 12-month view, the value is now only 2% in the red. Since the allocation of the new shares, it has gained a good 20%. In the case of Alphabet, the split took place only 2 weeks ago. This much can already be said: 10% plus in one week points in the right direction. Keep an eye on the big NASDAQ stocks. The largest performance contribution should be generated by these growth stocks.

    Viva Gold - In the Nevada desert

    The current price of gold should not obscure the fact that for centuries gold, in addition to value stability, has also contained an insurance component, especially in politically difficult phases. In times of war, such as now, gold becomes the focus of stability-oriented investors. Even though Russia, for example, is currently tending to be one of the sellers of gold to finance its war of aggression against Ukraine, many other market participants are happy to take these additional physical trading volumes into their portfolios. Real gold is thus always in demand. Significant trading locations for the metal are London, Singapore and Switzerland.

    Among the medium-term investors, however, some do not expect significant rises in the precious metal for a few years and therefore tend to buy into a promising property that will only increase in value through corresponding exploration successes. In 2017, Canadian explorer Viva Gold secured a 4,250-hectare property in Nevada with a prospecting license. It lies within the historically well-known Walker Lane, where Kinross, Coeur Mining, Augusta and Centerra operate. There have also been spectacular acquisitions in this district in recent years, for example, with the Bullfrog Mine.

    The well-known mining giants such as Barrick, Newmont and Agnico-Eagle are regularly on the lookout for good mining zones. Nevada has been rated third in the world by the Fraser Institute as a mining-friendly US state, which increases the chances of carrying out rapid mine expansions. With an estimated and suspected 600,000 ounces, Viva Gold's Tonopah project is not far from Kinross, with a quarter of a million ounces being mined here each year. The major would need to raise just shy of CAD 8 million to put Viva Gold's 5-year exploration work on its books. That is just the equivalent of 3,500 ounces of gold. The speculative gold investor is already picking up a few pieces here.

    Tesla - From one to three

    The Tesla share has split only once, in August 2020. For investors, the timing could not be better because, as a result, there was a hail of positive analyst comments and the price targets drove speculation to unimagined heights. The share reached its all-time high a good year later in November 2021, at around USD 1,243.

    In the same period, Tesla's quarterly earnings rose from USD 0.60 to USD 2.54 per share, representing a fourfold increase. But the numbers were not just operational, as there were also large credits from trading climate allowances in those quarters. In the current year, Tesla may be able to keep its operating beat very high, but losses from crypto speculation and CEO Elon Musk's failed Twitter acquisition are still weighing. The stock began to correct more sharply in the first quarter of 2022, losing a full 50% to USD 620 by May 2022. From this point, however, the value was able to gain another 50% to just under USD 950. However, the former high was not reached again.

    Now Tesla has announced that, in addition to 2 million vehicles produced in 2022, it will also carry out a stock split again. For one old share, two more shares are to be bought on August 25. At the annual shareholder meeting "Cyber Roundup" last week, Elon Musk reiterated the positive development of Tesla's driver assistance system and the construction of 10 to 12 more gigafactories. A renewed declaration of war from Austin/Texas to the competition thus thunders through the stock market halls. Despite all the opportunities, Tesla is highly volatile and only suitable for investors with strong nerves. The price-earnings ratio, based on expected 2022 earnings, is still over 100. Therefore, beware, the Tesla story relies on clear market leadership, but German engineering firms have long since stopped sleeping.


    Investing in stocks depends on many determinants. Interest rates, inflation, the economy, and geopolitics exert a strong influence on valuation and investment performance. The high valuations of US stocks have recently eased somewhat, but new investor money is already flowing into the favorite stocks of yesteryear. Will it start again from this level? Probably only if the widely expected recession does not materialize.


    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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 André Will-Laudien on December 7th, 2023 | 08:50 CET

    Snow chaos and climate madness, who is playing in the Premier League of the energy transition? Nel ASA, Power Nickel and Plug Power under the microscope

    • Mining
    • Nickel
    • BatteryMetals
    • renewableenergies
    • Energy

    Snow chaos and new record highs. While the DAX 40 demonstrates itself as the world's best blue-chip index, the German economy is currently navigating downward. It is not the earnings outlook that is presently driving share prices but the hope of lower interest rates. Meanwhile, the endless climate debates in Dubai continue. Among realists, however, there must be fears that the local oil lobby will not let a German know-it-all put a stop to the lavish margins with fossil fuels. There will, at least, be a friendly Arab nod to the 2050 climate goals and exclusive indulgence for the high-ranking German delegation. Whether this justifies federal expenditure of more than EUR 50 million is something we will leave uncommented. More important is a look at the top titles of the upcoming energy transition - where is the next 100 percenter lurking?

    Read

    Commented by Armin Schulz on December 6th, 2023 | 08:00 CET

    Siemens Energy, Defense Metals, Rheinmetall - Rare earths as a risk factor

    • Mining
    • RareEarths
    • renewableenergies
    • armaments

    The scarcity of and access to rare earths has become a major global concern. China plays a decisive role in the production of rare earths, as the country mines 60% of all rare earths worldwide and processes 85% of them. After the US banned the export of AI chips, China considered banning the export of rare earth metals. These trade blockades from both sides are causing tensions in international trade relations and concerns about supply bottlenecks. Rare earths play an important role in wind power, armaments, medicine, electromobility and the electronics industry. As an investor, one should be aware of these risks.

    Read

    Commented by Stefan Feulner on December 6th, 2023 | 07:20 CET

    Rock Tech Lithium, Altech Advanced Materials, Continental - There is a lot of movement here

    • Mining
    • Lithium
    • Technology
    • Batteries

    The final few weeks of the year are packed with activity. Before the Christmas tree is decorated and the goose is on the table, several companies are planning significant capital measures for the future. The general conditions appear favorable, as the German leading index, DAX, is on the verge of reaching a new all-time high. Technology stocks have also switched back into rally mode in recent days, boosted by the expected loose monetary policy.

    Read