Menu

Recent Interviews

Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


01. September 2021 | 12:45 CET

ThyssenKrupp, Triumph Gold, Siemens Energy - Is the turnaround coming?

  • Gold
Photo credits: pixabay.com

Despite galloping inflation, Jerome Powell took away the skepticism of market participants and assured them that an interest rate hike is still a long way off. The markets were delighted and have been rising ever since. But not all companies have seen their share prices rise. It is worth taking a closer look because many companies are fundamentally expensive. So one has to go bargain hunting. Often there are good reasons for lower share prices, but there are also hidden gems that want to be picked up. Today we take a look at three companies whose share prices are not getting off the ground.

time to read: 4 minutes by Armin Schulz
ISIN: THYSSENKRUPP AG O.N. | DE0007500001 , TRIUMPH GOLD CORP. | CA8968121043 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0


Jared Scharf, CEO, Desert Gold Ventures Inc.
"[...] Our SMSZ project is the largest contiguous land package of any exploration company in the region at 400km2 and overlays a 38km portion of the prolific Senegal Mali Shear Zone. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.

Full interview

 

Author

Armin Schulz

Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

About the author


ThyssenKrupp - Steel division cannot get on its feet

Steel prices have risen enormously since 2020. It went up from EUR 680 to over EUR 1,500. ThyssenKrupp should have profited handsomely from this, but that is not the case. In the second quarter, just EUR 33 per ton of steel remained as profit. Some of our competitors earn over EUR 200 per ton. Sales fell by 11%, with the quality of the steel also playing a role. In recent years, the Group has invested too little in its existing facilities, and as a result, quality ultimately falls by the wayside.

To make matters worse, the steel industry is one of the biggest CO2 emitters. Since more sustainability is in demand and customers are also demanding this from their suppliers, the Company cannot meet this demand. This transformation is costing a lot of money, with investments calculated in the high single-digit billions. Too much for the cash-strapped Group. There have been repeated attempts to float the steel division on the stock exchange, sell it or merge it with a competitor. So far, none of these plans have been crowned with success. The mood in the Company is also not particularly positive due to the chosen project name "Freedom".

The share, on the other hand, is showing the first positive signs. The downward trend was broken on August 30, and at the same time, the 200-day moving average was overcome again. Analysts are now also positive. Deutsche Bank sees the fair value at EUR 17 and has set the stock to BUY. DZ Bank also recommends buying but sees the price target at EUR 10.50. As an invested investor, you can stay with it, but the share should not fall below EUR 8.33 on a closing price basis. Then the upward trend would be broken.

Triumph Gold - Drilling program underway

The Canadian explorer Triumph Gold owns a total of four projects. Currently, a drilling program is underway on the Freegold Mountain project. The area is located in Yukon, within the Dawson Range, and NI 43-101 standard gold and copper deposits have already been reported. Drilling has been ongoing since late June and a total of 8,000m of diamond drilling is planned in four different zones. In addition, 100km as the crow flies of ground surveys and 35km as the crow flies of soil sampling and surface trenching are to be undertaken.

The Company is also taking a progressive approach to planning its exploration targets. On August 3, the Company was pleased to announce that an artificial intelligence (AI) study of the Revenue-Nucleus Zone has been completed, which Triumph Gold will use to plan their next steps. The AI algorithm was fed data from over 145,000m of drill samples. The result is exploration targets that, if successful, will lead to resource expansion.

Currently, resources are put at 2 million ounces of gold and copper. When the price of gold was above USD 2,000 last year, the stock was trading at a high of CAD 0.48. At present, the Company's shares can be bought for just CAD 0.14, and that at a gold price of over USD 1,800. Currently, the Company's value is only CAD 19.1 million. Looking at the producers around the area, such as Rio Tinto or Newmont, the Company could quickly become a takeover candidate.

Siemens Energy - Gamesa causes problems

Siemens Energy presented its figures for the past quarter on August 4. After Gamesa's profit warning, it was already clear beforehand that the numbers would not turn out well. After two quarters in the black, the Company had to report EBITA of EUR -124 million. Without Gamesa, the quarter would have been profitable. Also negative were new orders, which were down 36.8%.

Siemens Energy holds a 67% stake in Gamesa, but there does not yet appear to be any genuine cooperation. Gamesa chief executive Nauen was quoted as saying, "We, therefore, treat every shareholder equally, including Siemens Energy." In the process, Gamesa has failed to hedge against rising commodity prices. In fact, this is a must if you offer projects three years in advance at fixed prices. In the future, it wants to pay attention to this and also select the countries in which it sets up projects more carefully. The Company seems to want to withdraw from China, Russia and Turkey.

Brazil is important for Gamesa from various points of view. The country accounts for 10% of sales, and 43% of its total electricity consumption comes from renewable sources. Brazil is planning to become a producer of green hydrogen, so there are still promising business opportunities for Gamesa there for years to come. Siemens Energy is trying to cut costs and plans to eliminate 750 jobs in Berlin. It is also optimistic that Supervisory Board Chairman Kaeser himself is buying shares at this level. To leave the downward trend, the share must exceed EUR 27.65.


All three companies are far from their highs. At ThyssenKrupp, the restructuring is in full swing. The Company has been fighting for survival not just since the Corona pandemic. If one wants to invest in steel producers, there are certainly better alternatives. Triumph Gold has gold deposits and is currently trying to expand its resource estimate. The risk-reward ratio looks good here. Siemens Energy is suffering from its subsidiary Gamesa. Clear management mistakes have been made here, which will hopefully be remedied in the future. The Company will then also be technologically well-positioned for the future.


Author

Armin Schulz

Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

17. September 2021 | 12:42 CET | by Carsten Mainitz

Desert Gold, Barrick Gold, flatexDEGIRO - What is next after the correction?

  • Gold

Not always does an equation work out when investing in the short term. Patience and a longer-term investment horizon are not often emphasized for nothing. Investments in tangible assets such as stocks, commodities and real estate have been proven to protect against a loss of purchasing power. Precious metals are also suitable as crisis currencies over more extended periods. Setbacks offer opportunities! Who has the best cards?

Read

17. September 2021 | 10:41 CET | by Stefan Feulner

Steinhoff, Tembo Gold, Nikola - Strong rebound potential

  • Gold

Which investor does not dream of investing in a stock anticyclically during strong price setbacks to earn disproportionately from the rebound? But the anticyclical investment strategy, in which one bets against the broad mass, is associated with considerable risks. Because of this, one should analyze the object of one's desire carefully to see the reasons for the rapid sell-off. Are they self-inflicted problems, as was best observed in the Wirecard example, or is the impulse coming from outside.

Read

16. September 2021 | 12:45 CET | by Carsten Mainitz

Triumph Gold, First Majestic, Varta - Inflation is getting worse than we think - How to safeguard your assets!

  • Gold

Inflation in the US eased slightly in August from July's 5.4% to 5.3%. Nevertheless, this is a high value. It would be premature to derive a trend reversal from this. Far more dramatic are the rates of inflation in wholesale prices in Germany. As the Federal Statistical Office recently reported, these rose by 12.3% year-on-year in August. It was the most substantial increase since October 1974, during the first oil crisis. Investors should invest in tangible assets such as shares, real estate, commodities, or precious metals to protect their assets. Who offers the best risk-reward ratio?

Read