Close menu

March 9th, 2023 | 10:49 CET

TUI, Saturn Oil + Gas, Plug Power - Three shares with doubling potential

  • Mining
  • Oil
  • renewableenergies
  • Travel
Photo credits:

Finding shares with doubling potential requires a thorough analysis. On the one hand, the company's sector should have growth potential. If the sector is innovative, that also speaks in favour of the share. Then, a look at the competitors is important to see if the company is well positioned. If both factors fit, one should take a closer look at the candidate's finances. If you can tick off several items on this checklist, it is worth taking a closer look at the chart technique. Today we look at three candidates that have what it takes to double their share prices, at least in the long term.

time to read: 4 minutes | Author: Armin Schulz
ISIN: TUI AG NA O.N. | DE000TUAG000 , Saturn Oil + Gas Inc. | CA80412L8832 , PLUG POWER INC. DL-_01 | US72919P2020

Table of contents:

    TUI - Setting the course for the future

    On February 14, at the Annual General Meeting of TUI, Europe's largest travel provider, the foundation was laid to put the Group back on a stable footing. In a first step, ten old shares were converted into one new share. That reduced the number of shares to around 178.5 million. The next step will be a capital increase to repay the state aid and reduce net debt. As a result, the interest burden will also fall, and the financial situation will ease significantly. The risk of a renewed slump in business is no longer expected now that the Corona pandemic has officially been declared over in Germany.

    Even though adjusted EBIT in the 1st quarter ended December 31 was still minus EUR 153 million, it is an improvement from the previous year by a good EUR 120 million. With 3.3 million guests, we are slowly approaching the pre-Corona level. Sales climbed to EUR 3.8 billion. In the previous year, it was only EUR 2.4 billion. At the time of the figures, the Group had already announced positive booking momentum for both the winter and summer seasons. Based on this, management expects adjusted EBIT to improve significantly in its forecast for 2023.

    In terms of operations, things are looking up, and the financial problems should also be largely resolved with the next capital increase. It could put further pressure on the share, but after that, the course for the future will be set, and the share should then be on the watch list. The share is currently trading at EUR 18.55 and is thus above the 200-day moving average but below the 50-day moving average. The next support is at EUR 16.91, and the next resistance is at EUR 19.03.

    Saturn Oil & Gas - Growing rapidly

    In December, oil production at Saturn Oil & Gas was a good 13,000 barrels per day. Since February 28, it is now 140% more, with the acquisition of Ridgeback Resources officially completed on that day. With a production rate of 30,000 barrels, made up of 82% crude oil and 18% natural gas liquids, Saturn has crossed important marks that will provide the Company with new opportunities in terms of financing. At the same time, the Company is becoming more attractive to institutional investors. For the purchase price of CAD 475 million and about 19.4 million shares, the Oxbow asset will be increased by 5,000 barrels of synergistic assets, and Saturn will get a foot in the door in Alberta, considered one of North America's largest oil pools.

    By comparison, in 2016, Apollo and Blackstone paid CAD 1.35 billion to buy Lightstream Resources, which then became Ridgeback Resources. Saturn now has 134 million barrels of proven and probable reserves and about 850 more drilling locations. That means the Company can sustain production for at least 15 years, which is also reflected in the figures forecast for 2023. EBITDA is expected to be CAD 475 million, and free cash flow per share is CAD 1.84, assuming oil prices average USD 80. By the end of the year, the current debt level of CAD 545 million is to be reduced to CAD 345 million. By the end of 2025, all debt should be paid off.

    Production is not expected to exceed 30,000 barrels per day until the 2nd half of the year. Accordingly, it will take until the Q3 numbers to get an accurate view of the real numbers after the Ridgeback transaction. If drilling results remain as good as 2022, when expected numbers were beaten by 16%, there could be more positive surprises. The stock is still trading below book value, and the market capitalization is below the expected EBITDA of just one year. Debt repayment is also assured, with just over USD 1 billion flowing to the Company from hedging through 2027. For more information, you can visit Currently, the share is still available for CAD 2.78.

    Plug Power - Weak 4th quarter

    Governments worldwide are investing in green hydrogen to meet climate goals and net-zero ambitions. In the US, Joe Biden has pushed a USD 370 billion climate package through the Senate. One of the biggest beneficiaries of this package could be Plug Power, which has much to contribute to climate goals because of its vertically integrated hydrogen supply. The Company aims to become the world's largest producer of liquid hydrogen in 2023. To do so, it is building a huge green hydrogen production capacity, which should lead to improved margins and higher profits.

    Most recently, however, the group disappointed its investors once again when it presented its Q4 figures last week. Again, analyst estimates for both sales and earnings were not met. Sales at USD 220.7 million were around USD 45 million below expectations. Negative earnings of USD 1.03 per share had been expected but ended up at USD 1.25. Year-on-year, sales were up 36%. Management reiterated targeted guidance of USD 1.4 billion in sales and a gross margin of 10%. 2022 is seen as a transition year, and activities are now expected to bear fruit.

    The hydrogen market is volatile, so positive news can quickly push the stock back towards last year's highs of USD 32. However, management has often disappointed investors recently, so the numbers need to improve first. The hydrogen market can be a huge market for the future, especially because energy from renewables needs to be stored somehow before a power grid becomes overloaded. The group has spread its projects around the world, so it is well-diversified. Against this backdrop, the stock has the potential to double. Currently, the stock is trading at USD 13.67.

    Of the three candidates analyzed, Saturn Oil & Gas has the most potential to double, as the Company is already earning high profits and is fundamentally undervalued. Second place goes to Plug Power because the hydrogen market has enormous growth potential, and many subsidies are given here by governments. TUI is in third place because a capital increase is still pending. After that, however, the share could well be worth a look.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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 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

    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 André Will-Laudien on June 17th, 2024 | 06:45 CEST

    Acute threat? Armaments and high-tech in the crosshairs: Aixtron, Almonty Industries, Rheinmetall and Hensoldt

    • Mining
    • Tungsten
    • hightech
    • Defense
    • armaments

    The recent European elections have enabled the conservative camp to make significant gains. Undoubtedly, a whole bouquet of issues has led to the so-called "shift to the right". In times of war, however, the neutral observer may not be surprised that the self-proclaimed peace parties, represented by the colours red and green, have lost considerable ground. After all, the competence for peacemaking and security in Europe tends to be found in the conservative camp. The capital markets currently favour high-tech and armaments, orders are booming, and growth is assured for years to come. It is now crucial for stock market players to take a closer look at these sectors, as the high-yield performers of the first half of the year appear to be correcting more strongly. What will happen here in the medium term?


    Commented by Fabian Lorenz on June 13th, 2024 | 07:00 CEST

    Stocks on the verge of a breakout! Rheinmetall, TUI, Desert Gold

    • Mining
    • Gold
    • Defense
    • Travel

    Will Rheinmetall soon reach a new all-time high? An insider thinks so and is buying a sizeable block of shares in the armaments group. The news situation could hardly be better for the DAX-listed company. The price of gold could also break out and rise to USD 2,700 in the next wave, according to a renowned expert. Desert Gold should benefit noticeably from this. The Company's market capitalization is only a fraction of the proven gold resource, and drilling continues. And what is TUI doing? The share is not making any real progress. However, it should benefit from the FTI collapse, and the crucial summer season brings a high booking volume.


    Commented by André Will-Laudien on June 12th, 2024 | 07:15 CEST

    After the election, buy a combustion engine now? Mercedes-Benz, Volkswagen, Globex Mining and BYD on the test track

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • Batteries

    The crushing defeat of the green camp in the EU elections has caused a stir in the automotive industry. Will the ban on combustion engines be overturned in favour of a general openness to technology? It is well known that the best conventional vehicles come from Germany, and they are demonstrably no more harmful to the climate than current e-vehicles. Voters have finally lifted the green veil, and the doctrine of the know-it-alls is now in retreat. From a climate perspective, investing in battery storage systems makes sense, but they do not necessarily have to be installed in vehicles. How can investors benefit from the current situation?