November 26th, 2021 | 11:28 CET
The copper sensation continues! Nordex, Nevada Copper, JinkoSolar, Daimler
Table of contents:
"[...] If we pursue our goals conscientiously, the market will adjust its valuation accordingly, I am sure. Often, all it takes is a trigger. [...]" Ryan McDermott, CEO, Phoenix Copper
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.
Nevada Copper - Mine expansion can go ahead as planned
One company that is on the cusp of delivering new copper capacity to the parched market is Nevada Copper. The Company has just completed a major reverse stock split and further optimized its debt. It has also been able to acquire additional funding and financing commitments from KfW and core investor Pala Investments. Shareholders have rewarded this progress with an additional capital increase of CAD 114 million. The placement was made at CAD 0.77 and included half a warrant with a subscription price of CAD 1.00.
In total, this should have raised the financing requirements for the Pumpkin Hollow underground mine. Based on a plan from the year 2020, the aim is to bring production to 77 million pounds of copper concentrate in the first step. Great hopes are also pinned on developing the open pit mine in the immediate vicinity, which is estimated to have a production volume of up to 200 million pounds. Exploration work is now entering the next round.
There has been no new production facility in North America in the last 10 years, so the Nevada Copper project is attracting international attention precisely because of its promising potential for expansion. Nevada has a new boss in ex-Barrick manager Randy Buffington and an experienced team for the upcoming technical processes - it will likely deliver first results in 2022. The market is waiting for progress on copper.
NCU stock remains very liquid after the rollback, with more than 1 million shares changing hands daily in Canada. The outlook has clearly brightened after the financing. Nevada Copper could surprise operationally next year.
Nordex SE - This could be the breakout
It was quiet around the Nordex share for a long time. There was a significant capital increase in mid-2021 to replace old investors as creditors. The share price then fell back to a level of EUR 13. During this capital round, the Company managed to land further large orders. The only remaining problems are the shortage of materials and the rising purchase prices for preliminary products, which permanently put pressure on the EBIT margin.
In recent weeks, however, the picture seems to be brightening. Several mega-orders are arriving as governments look to deliver on their climate protection pledges made in Glasgow. As a result, the number of Green Energy projects is increasing worldwide. The wind turbine manufacturer has just received a major order from Peru: 30 N155/5.X turbines for a 177 MW wind farm in the Ica region. Due to its geographical location, Peru has a high wind energy potential. Mainly in the coastal areas between the Andes and the Pacific Ocean, average annual wind speeds of 7.5 m/s and more prevail at heights of 80 m.
The project is the first order for N155/5.X turbines of the Delta4000 series with a rotor diameter of 155 meters and a flexible rated power in the 5 MW class. The order also includes a full-service contract with a term of ten years. Construction of the wind farm will start in the fall of 2022. This tailwind is enough for a nice technical move of the share above the EUR 16 mark. Buy in again in several steps because if the EUR 17 mark falls, it goes straight north.
JinkoSolar - Rebreak of the USD 50 provides technical signal
Demand in the global distributed power generation market will continue to grow solidly at a compound annual growth rate of 10% between 2021 and 2025. A prominent representative from the renewable energy generation sector is China's JinkoSolar.
The shares of the solar panel expert took a severe hit in May and halved in value over the year down to EUR 25. Then came the climate conference in Glasgow. The quorum of governments was sufficient to bring about a turnaround with a good order situation. The last quarterly report delivered figures above analysts' expectations, so the USD 50 mark was regained - a 100% increase in 6 months - what an outstanding performance.
Technically, a cautionary approach is now called for because the breakout must be significant. Only then can the lower reversal formation in the form of a cup-and-handle pattern come to fruition. If the movement starts successfully, price targets near the old highs at around USD 65 are also conceivable again. What is important now: Set a tight stop loss at USD 48.5, then the nice profits remain secured.
Daimler AG - Trucks will be launched on December 10
At the beginning of December a historic event is happening at Daimler AG. Following resolutions passed at this year's Annual Shareholders' Meeting, the business units of Daimler Truck Holding AG will be separated from the Group on December 10, 2021, and booked to the shareholders as a share distribution. At the same time, the old Daimler AG will be renamed Mercedes-Benz AG. As shareholders of today's Daimler AG, they will therefore hold both shares in their securities accounts in the future.
Given the size of the spin-off and the resulting increase in value due to the dissolution of the conglomerate markdown, an investment in the old Daimler AG should still be worthwhile today. Because with only a two-week holding period, one will then be on board for the restructuring. From the middle of next year, both shares should be represented in the DAX simply because of their size. Premium vehicles and the world market leader in trucks in the largest index segment - now that is a nice German story. Not entirely, because since the failed merger of Daimler and Chrysler, most Daimler shares are held abroad. The largest shareholders are from China, the USA and Kuwait. Buy before the split!
Special situations on the stock market often lead to irrational valuations in the short term. However, they also harbor opportunities on the upper or lower side of the price spectrum. The charting technique shows an interesting short-term scenario for Nordex and JinkoSolar. Daimler and Nevada Copper, on the other hand, have convincing long-term prospects.
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