November 3rd, 2022 | 11:53 CET
TeamViewer, Tocvan Ventures, Advanced Micro Devices - High rebound opportunities
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"[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.
TeamViewer - Breaking free
The shares of TeamViewer AG, which have been badly hit in recent months, experienced a price firework. With a gain of more than 10%, the stock managed to break through the downward trend formed in February of the current year to EUR 10.85. The next resistance is at EUR 11.92. However, due to the opening of a price gap, a setback to the breakout level at EUR 9.84 would not be unlikely for the time being.
The reason for the strong performance was the announcement of the figures for the third quarter. Despite the challenging market situation, the software developer for the remote control and maintenance of computers increased its billed revenues by 15% to EUR 144.6 million in the third quarter, with the enterprise business growing by 47% to EUR 26.7 million. Adjusted operating profit grew by 42% to EUR 60.1 million. The much-noticed operating margin also grew by 8 percentage points to currently 42%. The Goeppingen-based company beat analysts' estimates for both sales and profit.
Another positive factor was the confirmation of annual sales, which are expected to be at the lower end of the range of EUR 630 to 650 million. Several analyst houses were cautiously optimistic about the fulfilment of estimates for the third quarter. The analyst firm Warburg Research left its rating for TeamViewer at "Buy" with a price target of EUR 14.50. In contrast, Canadian bank RBC continues to see a price target of EUR 19 and reiterated its "Outperform" rating.
Tocvan Ventures - Start of the drilling season
Still, the gold and silver market is on hold due to the strict monetary policy of the central banks with further announced interest rate hikes. However, the strategy of the financial guardians should change at the beginning of next year at the latest if one wants to avoid a hard landing of the economy and an even larger indebtedness of individual states. By this switch, at the latest, this should mean the starting signal for a sustained gold and silver rally. There are already attractive anti-cyclical entry opportunities at the current level with interesting exploration companies such as Tocvan Ventures.
With Pilar and El Picacho, the Canadians own two gold and silver projects in the state of Sonora. Sonora produces about 40% of Mexico's gold. Both of Tocvan's projects are located near producing mines or major projects that are moving toward development. Near Pilar alone, there are three major projects within a radius of up to 80 km: Osisko Development's San Antonio project, Minera Alamos' Sanatana mine and Argonaut Gold's La Colorada mine.
Preparations are underway for the first drill program at the El Picacho gold-silver project, which is expected to last until the second quarter of next year. Tocvan Ventures has evaluated the potential of several target areas at Picacho. Here, drilling is planned primarily at the San Ramon Zone, which is 500m by 500m and has high-grade gold at surface and underground workings that have shown potential for a near-surface bulk tonnage target. In addition, 2,000m of infill drilling and 3,000m of step-out drilling are planned on the Pilar property. A total of 15,000m of drilling and 2,000m of trenching have been approved.
Tocvan Ventures has a market capitalization of CAD 17.14 million. Due to the current market weakness in the precious metals sector, the share price has corrected by around 55% since the beginning of the year. Due to the first-class conditions in Sonora, Mexico, and the results achieved so far, the share could benefit strongly from sustainably rising precious metal prices.
A detailed report on Tocvan Ventures can be found here. In addition, the management will present at the International Precious Metals & Commodities Show on November 4 and 5 in Munich.
Advanced Micro Devices - Disappointing results, rising share prices
Shareholders at chip giant AMD were able to follow a similar reaction to the quarterly figures as at TeamViewer. The US company merely remained within the range of its recently revised downward sales and earnings forecasts. In addition, the estimates for the final quarter were also adjusted downward. Sales of only around USD 5.5 billion are expected for October to December. The reason for the sales warning is the continued weak demand for PCs and high-performance chips for data centers.
On a positive note, the stock market registered a 29% increase in revenues in the third quarter compared to the same period last year. The most important growth driver was the data center business, which increased by 45%. Third-quarter earnings per share hovered around USD 0.67, with gross margin landing at 50% as announced.
In after-hours trading, the stock gained 4% to around USD 64. If the resistance at USD 64.21 is exceeded, a buy signal would be generated with a follow-up potential of initially USD 70.29.
Although the figures for the third quarter were in line with forecasts, both TeamViewer and AMD made significant gains. Due to the possible turnaround in interest rates, an anti-cyclical entry into gold and silver mining companies should promise long-term price potential at current levels. With its two promising properties, Tocvan Ventures should benefit from sustainably rising precious metal prices.
Conflict of interest
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