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Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


05. May 2021 | 09:10 CET

Varta, BYD, SunMirror: Short-term prospects in check

  • Commodities
Photo credits: pixabay.com

Shares related to electromobility and hydrogen have been the yield drivers in recent months. But why are stocks like Varta and BYD weakening now? After the enormous price increases, speculators are pulling back. But this is not necessarily a bad signal. Stocks showing relative strength in the current phase could be at the forefront of the subsequent rise. We outline three exciting investment stories.

time to read: 3 minutes by Nico Popp
ISIN: DE000A0TGJ55 , CNE100000296 , CH0396131929


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview

 

Author

Nico Popp

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.

About the author


Varta: Will this be a German success story?

German battery manufacturer Varta has been considered a secret electromobility winner for several months. The reason: the Company is well-positioned in all aspects of rechargeable batteries and only needs to make the switch to e-car batteries. But the "only" thing is causing heated discussions. The extent to which it is enough to transfer known know-how to a new area and whether Varta can manage to hold its own against the Chinese competition remains an open question.

2020 was a record year for Varta. Figures for the first quarter of 2021 are to follow on May 12. Varta itself wants to remain on the growth path. But to what extent the market is satisfied with this growth remains uncertain. However, a good sign for investors is that the share has already lost some value in recent months. That reduces the potential drop. However, from a chart perspective, the prices should remain in triple digits; otherwise, there could be further selling pressure on Varta.

BYD: Under pressure in the short term, opportunities in the long term

The BYD share is also under selling pressure - it has fallen by around 40% in the last three months. There is still a gain of almost 200% on a one-year horizon, but the stock recently broke a chart support zone. If the share does not recover immediately, there is also short-term downward potential to EUR 15. Nevertheless, BYD appears well-positioned. By its own account, China's largest car manufacturer is a leader in battery technology. BYD wants to increase the supply of batteries to other manufacturers in the future and thus further fuel the price war. BYD considers itself well-positioned, as it has always covered large parts of the value chain around e-cars.

Another advantage for the Chinese is their access to raw materials: Lithium, cobalt, rare earths and copper are urgently needed for electromobility. China has been pursuing an active raw materials policy for decades and is positioning itself aggressively in many countries. In addition to numerous investments in South America and Africa, the mammoth New Silk Road project proves China's strong geostrategic position.

SunMirror: Broad portfolio around e-metals and gold

An alternative to commodities from China or its sphere of influence is what the Swiss Company SunMirror wants to be. SunMirror operates three commodity projects in Australia and focuses on gold in addition to lithium, tin, nickel and iron ore. Only recently, the analysts of Sphene Capital attested the share further potential up to a level of EUR 174.30. Currently, one share is valued at EUR 144. While many stocks around electromobility weakened in recent months, the share of the Swiss increased by 18%.

Analysts at Sphene Capital believe it is possible that the promising Cape Lambert South, which contains iron ore, will be sold to an investor. As a result, this could allow SunMirror to focus more on metals around electromobility or put possible funds into new plans. The Swiss Company's stock has been rising slowly and steadily for months. Investors should consistently monitor the development of SunMirror as their projects are attractive and exude imagination. SunMirror is currently valued at around EUR 290 million and is thus no longer a small company.

Raw materials as a prerequisite for the e-car boom

Investments in electromobility have a promising future - but they are also speculative. Especially in the area of battery production, a price war could ruin many ambitious plans. The Chinese Company BYD is in a better position, even though the share seems expensive on the one hand and market-relatedly battered on the other. Commodity companies such as SunMirror are less exciting than BYD, but they are a prerequisite for the e-car boom. Companies on a growth course can therefore be promising.


Author

Nico Popp

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.

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.


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26. November 2021 | 12:37 CET | by Armin Schulz

Barrick Gold, Sierra Grande Minerals, Yamana Gold - False breakout in gold?

  • Commodities

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  • Commodities

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01. November 2021 | 10:29 CET | by Nico Popp

Shell, Sierra Grande Minerals, K+S: 4.1% inflation - here is how investors counteract it

  • Commodities

Inflation in the eurozone climbed to a new record in October - at 4.1%, one can confidently speak of inflation. At the same time, the European Central Bank (ECB) continues to adopt a wait-and-see approach. Although the markets are pricing in an interest rate hike in the eurozone, analysts and the ECB believe these expectations are premature. Given the stuttering economic recovery, it might make sense from the central bank's point of view to delay the exit from the ultra-loose monetary policy a little longer - with all the risks.

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