Close menu




April 20th, 2022 | 10:29 CEST

The million-dollar opportunity: Valneva, Edgemont Gold, BASF

  • Gold
  • Copper
  • Biotechnology
Photo credits: pixabay.com

No one can see into the future. But investors can estimate which topics will move share prices in the near future. There is not always a connection between what is important and what is played out in the media. Issues such as climate change are timeless but disappear from the front pages from time to time. It is currently a similar situation with the pandemic. We dare to take a look into the future and ask what could move prices this summer.

time to read: 3 minutes | Author: Nico Popp
ISIN: VALNEVA SE EO -_15 | FR0004056851 , EDGEMONT GOLD CORP. O.N. | CA28008L1067 , BASF SE NA O.N. | DE000BASF111

Table of contents:


    Valneva: The air is out

    Incidences in Germany are on the decline. Nevertheless, values around 800 still feel like a lot. But the topic has lost its way. Almost everyone has had Corona. In most cases, the disease was mild. That takes away the horror of the incidence. The immunity that now exists also ensures that hardly any patients have to be hospitalized. Nevertheless, experts warn about the coming fall. Vaccination rates are still too low to prevent hospitals from being overburdened. There are also more and more mutants, which could become more dangerous. But what good is speculation at a time when people are pandemic-weary and anything but fearful?

    Most recently, Health Minister Karl Lauterbach used the word "killer variant". It is not only critics of the Corona policy who are reacting badly to this, and not without good reason. After years of the pandemic and many warnings - some exaggerated - only very few people have an open ear for such warnings. The pandemic theme will level off in the coming months. Titles such as Valneva are still on an upward trend, but the air is out. Even the initial approval of the Corona vaccine in the UK did not cause Valneva to make any significant leaps. The fact that this is an inactivated whole-virus vaccine and, in relation to Corona, an innovation, is now of little interest to anyone.

    Edgemont Gold: EUR 1 million market capitalization and a clear goal

    Looking at the share price of gold and copper company Edgemont Gold, one could draw parallels to CureVac's vaccine failure. Edgemont Gold's stock has dropped a whopping 62% in the past month. What happened? In late March, Edgemont Gold announced drill results. The team drilled 27 meters of gold grading 0.44 g/t, including a six-meter interval of 1.26 g/t gold. However, the results were less encouraging for copper and did not reveal any higher grade concentrations greater than 0.2%. The market had expected this and has since punished the stock. However, the Company itself stresses that the results to date are a template for further drilling. "With the assay results in hand, we are excited to finalize our drill plan and begin our Phase II drill program next month," said Stuart Rogers, president and CEO.

    Since exploration drilling always provides clues to the composition of rocks and the underlying geology of a project, in addition to concrete grades, even the upcoming drilling could provide more encouraging results for copper. In any case, exploration projects are subject to constant ups and downs and are therefore suitable for anti-cyclical investors. With a market capitalization of around EUR 1 million, Edgemont Gold is now an exciting warrant on the two trend themes of gold and copper. Positive drill results are likely to awaken new potential and boost the value. However, the share must be considered extremely speculative.

    BASF: Risks despite foresight

    BASF shows that risk is sometimes assessed in a distorted way on the stock market. The chemical giant from Ludwigshafen is suffering from the general situation. If the war in Ukraine continues to escalate and sanctions are extended, BASF could soon run out of energy. Since BASF makes a decisive contribution to the global supply of fertilizers, the situation is doubly critical. In addition to share price losses, there is a threat of hunger in many regions of the world in the long term. The share is currently showing little momentum. Below EUR 50, there is a threat of further share price losses; a comeback awaits beyond EUR 55. In between, the stock is a hot potato. But if BASF comes through the current crisis, the Company could benefit in the long term. After all, the Company had already presented a concept to move away from fossil fuels before the war.


    The current market situation is challenging for investors. Even well-positioned companies like BASF could go under the radar. Former hopefuls, such as Valneva, are also moving more and more out of focus. In the end, those companies that solve acute problems are likely to profit. These include stocks from the energy and commodities sectors. Edgemont Gold has been penalized for drilling results, although further drilling is still planned for the end of April, building on previous findings. The stock is down. The Company is worth about EUR 1 million. Cash on hand was EUR 1.2 million in February. It may be an opportunity.


    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

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Armin Schulz on February 21st, 2024 | 07:30 CET

    Barrick Gold, Desert Gold, Renk - Golden times everywhere?

    • Mining
    • Gold
    • Defense

    The world is full of economic uncertainty and geopolitical tensions. These are ideal conditions for gold, which is still considered a safe haven. There are now several factors that point to a sustained upswing in gold prices. One factor is the increased involvement of central banks, which are increasing their reserves to an extent not seen for decades. Another factor is the discussion within the BRICS nations about introducing a new currency backed by gold as a counterweight to the dominant US dollar. Therefore, today, we look at two gold companies and shed light on Renk, a representative of the defense industry, which is also experiencing golden times.

    Read

    Commented by Fabian Lorenz on February 21st, 2024 | 07:00 CET

    Top news: BYD, Bayer and Globex Mining

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • chemicals

    Bayer shocked investors yesterday with the announcement of its dividend cut, which shouldn't have been much of a surprise. The Company is burdened with high debt, endless legal fines, and an empty pharmaceutical pipeline. In an initial reaction, analysts have lowered the share price target. BYD, on the other hand, is doing well operationally. Only the share price is not picking up. Will a share buyback turn the share price around? For those who want to profit from the commodity boom with reduced risk, then Globex Mining's stock is attractive. The news flow is strong, and those who act quickly can still register and follow the live presentation of the mining incubator at the 10th International Investment Forum, IIF, today.

    Read

    Commented by André Will-Laudien on February 20th, 2024 | 07:30 CET

    Takeover fever in the biotech sector! Will MorphoSys now be followed by Defence Therapeutics, Evotec and Bayer?

    • Biotechnology
    • Pharma
    • Innovations

    It has happened: Novartis is bidding for MorphoSys. Once again, a long-lasting and persistent rumour mill eventually confirms itself. Those who remained loyal to MorphoSys despite heavy selling last fall have now made a profit of over 300%. If we turn the analytical magnifying glass on the sector, we can see that the speculative biotech stock market segment has started to move again since the challenging year 2023. Hopes of falling interest rates in the near future, along with several other M&A hopes, have led to steady inflows into listed bio-ETFs, resulting in fund managers having recently adjusted their weightings upwards. We analyze which stocks are currently making the loudest noise.

    Read