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April 21st, 2022 | 12:57 CEST

Valneva, Power Nickel, K+S: The perfect mix for traders and long-term investors!

  • Nickel
  • Commodities
Photo credits: pixabay.com

As is well known, the profit lies in the purchase. On the question of how quickly and in what amount this should be realized, traders and long-term investors certainly have quite different answers. The current market phase is interesting for both types of investors. For many sectors, such as commodities or life science, the general conditions are good, so the wave of success can be ridden further. Increased fluctuations also offer short-term opportunities.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: VALNEVA SE EO -_15 | FR0004056851 , Power Nickel Inc. | CA7393011092 , K+S AG NA O.N. | DE000KSAG888

Table of contents:


    Jerre Foo, Corporate Development Executive, Silkroad Nickel
    "[...] China has become the manufacturing capital of the World, and because of its infrastructure, expertise and capabilities, Silkroad Nickel has strategically positioned itself to partner with Chinese companies in the Stainless Steel and EV industries [...]" Jerre Foo, Corporate Development Executive, Silkroad Nickel

    Full interview

     

    Valneva - Decisive days

    The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) is still meeting until this Friday regarding the approval of Valneva's COVID-19 inactivated vaccine VLA2001. The CHMP Scientific Committee has an important role and performs risk assessments of medicines used in humans that are to be approved throughout the EU.

    The Austrian-French biotech company had announced the prospect of approval for the vaccine in the EU in April. The Company's main area of research is special vaccines. Besides Corona, Lyme disease and cholera fall within its scope of activities. The Valneva Corona vaccine was recently the first to be approved in the UK for use in people between the ages of 18 and 50.

    For the brave, the hang-up is a good entry opportunity. Analysts believe the Company, valued at EUR 1.8 billion, has an upside potential of 27% over the next 12 months. The Company's valuation is moderate. The 2022 P/E ratio is 9 and drops to a low 5 in the following year!

    Power Nickel - Undiscovered profiteer of the electromobility megatrend

    Copper, lithium and cobalt are typically the battery metals that investors associate with the electromobility megatrend. Nickel, on the other hand, is often neglected. The metal is easily formable and plays a significant role as an alloying metal. Russia is one of the most important producing countries. At the beginning of March, shortly after the start of the Ukraine war, the nickel price shot through the roof within a few days. Even though the price trend has calmed down again, rising demand will increase the nickel price in the long term, and supply is also becoming tighter. Therefore, this is a promising constellation for (prospective) producers.

    Power Nickel is focusing on a high-potential battery metal project in Canada. At the NISK project, a 5,000m drill program, already fully funded, will be carried out in the second quarter. The objective is also to publish a new NI 43-101 compliant resource estimate for the nickel project in the coming months.

    The planned spin-off of the gold-copper assets should have a positive impact as it sharpens the equity story of the stock. Power Nickel will hold 80% in the new Company Consolidation Gold and Copper, with the remaining 20% to be "distributed" to existing Power Nickel shareholders. As a result, currently valued at only about CAD 17 million, the stock has several value enhancement levers. A detailed analysis of the Company can be found at researchanalyst.com.

    K+S - Is the air getting thinner?

    Most recently, the share of the Kassel-based fertilizer producer reached a new multi-year high of a good EUR 36. However, above the EUR 30 mark, most analysts have lowered their thumbs for the shares, which have multiplied in the last two years. The experts at Baader Bank and JPMorgan stand out positively with price targets of EUR 33 and EUR 44.50, respectively.

    Due to higher prices and increasing demand, the Group recently adjusted its forecast for the current fiscal year upwards. The operating result (EBITDA) is expected to be between EUR 2.3 billion and EUR 2.6 billion in 2022; previously, the guidance showed a target range of between EUR 1.6 billion and EUR 1.9 billion. K+S plans to provide a detailed outlook for the year when it presents its first-quarter figures on May 11.

    A detailed analysis of the prospects for K+S and the situation in the industry can be read here.


    All three companies mentioned are benefiting from good conditions in their respective industries. Temporary price declines offer opportunities. In just a few days, courageous Valneva investors could be rewarded. K+S shares are also unlikely to have seen their highest prices this year. Power Nickel has the best opportunities within the trio. Numerous value drivers are in place, which should soon revive the share price.


    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

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



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