June 14th, 2022 | 12:26 CEST
Unheeded crisis signals! What is next: BioNTech, Lufthansa, Triumph Gold
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"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
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.
BioNTech: Is BA.5 getting ahead of the vaccines?
BioNTech's stock has lost about 7% of its value in recent trading days. However, if one takes a long-term view of the share, it has stabilized at around EUR 150 for several months. In this area, the value could have found a bottom. Such a consolidation can be interpreted in two ways: First, there is no selling pressure to push the stock lower, but second, there is also no need to pay higher prices for a share, as the supply of around EUR 150 still exceeds the demand. Nevertheless, since the consolidation has been going on for months now, investors should not wait too long before analyzing BioNTech. Those toying with the idea of a purchase should do the groundwork now.
A key driver of the stock's outlook could be the adapted vaccines scheduled to begin shipping in the fall. Even an additional variant, which is both contagious and dangerous, is not yet off the table. Regarding BA.5, however, it looks as if natural immunity will win the race against the vaccine manufacturers. The vaccination pressure may drop for many people who have just been through an infection. However, investors should keep in mind with BioNTech that the biotech company has more to offer than vaccines against Corona. Investors should keep the stock in mind just in case.
Lufthansa: Travel lust turns into travel frustration
From an investor's perspective, a counter to BioNTech could be the Lufthansa share. Why? The airline is just benefiting from the easing a few months ago. Many people are rushing to get outside. The mood at airports is relaxed. However, the increasing problems due to Corona are causing tensions as more and more flights are cancelled, ground staff are in short supply, and long queues are forming at the security check. Given the prospects surrounding BA.5 - in Portugal, one in two people are infected - the desire to travel could be dampened. Lufthansa's share price, which in any case has no upper hand at the moment, also remains unattractive.
Triumph Gold: Will 2020 be a repeat? Warning signals ahead!
Triumph Gold, a gold stock operating in the Canadian Yukon, also makes an unattractive impression at first glance. The share has been running sideways for about a year. Recently, the price stabilized a little. Triumph Gold is a typical gold prospector: Still, far from production, perspective and fantasy rule the share price. Where this can lead is shown by the development between March and July 2020 - within this time, Triumph's price had more than doubled. What happened then?
First, the pandemic depressed prices, and then governments around the world reacted and pumped capital into the economy. This obvious imbalance pushed up the gold price and, in the next step, shares of Triumph Gold. Currently, there are signs of turmoil in the markets again. Inflation remains high - it recently reached another forty-year high in the USA. At the same time, bonds are making movements that only occur during crises. Ten-year government bonds from Germany are now yielding 1.5% - just a few weeks ago, the yield was 0.3%. Although growth companies are currently still suffering from the overall environment, the wheat could soon be separated from the chaff, as was already the case in 2020. Gold stocks are often in demand during crises, and investors should note promising stocks such as Triumph Gold, in which Newmont and Teck Resources, among others, are major shareholders.
Travel lust or travel frustration? Pandemic profiteer or non-starter? If you cannot decide between stocks like Lufthansa and TUI on the one hand, and BioNTech and Valneva on the other, you might want to think about gold. While cryptocurrencies continue to fall, the millennial surrogate currency is holding steady. Small stocks like Triumph Gold can provide leverage on gold prices during rally phases.
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