Close menu




September 1st, 2021 | 12:45 CEST

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 | Author: Armin Schulz
ISIN: THYSSENKRUPP AG O.N. | DE0007500001 , TRIUMPH GOLD CORP. | CA8968121043 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0

Table of contents:


    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.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    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



    Related comments:

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on December 1st, 2022 | 09:46 CET

    BYD, Auxico Resources, Hensoldt, Rheinmetall - Prepared for the future

    • Mining
    • Gold
    • RareEarths
    • Defense

    Russia's invasion of Ukraine at the end of February this year changed everything. While global stock markets fell into a state of shock, shares in defense companies boomed. With the arms buildup in the Western world, the future looks bright for companies that were still viewed critically before the war of aggression. However, in order to produce enough tanks, aircraft and other war equipment, the industry needs a variety of critical metals for which demand already exceeds supply.

    Read

    Commented by Stefan Feulner on November 22nd, 2022 | 13:42 CET

    Favorable starting positions for Commerzbank, Desert Gold and BioNTech

    • Mining
    • Gold
    • Investments
    • Biotechnology

    The suspected downward pressure due to uncertainties in the economy and geopolitics has so far failed to materialize. Instead, the most important stock indices, such as DAX or Dow Jones, were able to leave their short-term downward trends and are sending signals for a further upward push. In addition to the stock market, the precious metals sector was also able to turn around. Here, in particular, entry opportunities beckon at a significantly reduced level with the chance of long-term, disproportionate price gains.

    Read