16. November 2021 | 11:56 CET
Varta, Nevada Copper, BYD: Fast 100% with this future trend?
What does the future look like in German inner cities? If we take a survey of Hamburg residents as a blueprint, a lot will likely change in our cities very soon. Hamburgers would prefer to see their city centers car-free and promote electromobility even more strongly. So far, it is primarily city dwellers who are leaning toward the future. But as soon as e-cars paired with autonomous driving bring the surrounding areas closer to the centers, rural residents are also likely to renounce their diesel quickly. Don't believe it? Then let us convince you and find out how you can invest in tomorrow's trends today.
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ISIN: VARTA AG O.N. | DE000A0TGJ55 , NEVADA COPPER CORP. | CA64128F7039 , BYD CO. LTD H YC 1 | CNE100000296
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
Varta is visionary on the road
Electric cars are cleaner and quieter than classic combustion engines, measured in terms of their direct pollutant emissions. What is more, the new generation cars are rolling computers. Some models, such as those from Tesla, are also already going quite far in autonomous driving. Imagine this technology advancing even further and regenerative energy sources being sufficient in the distant future to power these self-driving automobiles: The cost of mobility would drop significantly. Autonomously driving vehicle fleets could compensate for the poor infrastructure in rural areas and take people to the doctor or other appointments in the city. Always with them in the trunk: shipments of goods. Even if such visions sound like dreams of the future, a Tesla equipped with cameras around the vehicle shows that such services are certainly possible.
When the car has become an indispensable multitool, just like the smartphone once was, even die-hard horsepower pros will not shed a tear for the good old combustion engine. After all, it is always more convenient to be driven than to drive yourself. The German battery manufacturer Varta has recognized that electromobility is a groundbreaking development, the end of which no one can foresee today. That is precisely why it is worth being part of it, Varta thinks, and the Company wants to take off with batteries in the next few months. The past year's hype did not exactly benefit the share - the advance praise paralyzed the value, which today is increasingly measured against the actual situation. It is characterized by falling sales and better earnings. The air is out at Varta - electromobility or not.
Nevada Copper: Roller coaster to happiness?
What Varta was a few months ago, the Nevada Copper share is today - a plaything for traders and always good for quick percentages - in every direction. To navigate around the stock, investors need to consider the overall situation. Nevada Copper has morphed in recent years from a copper explorer to a producer that aims to extract 5,000 tons of copper ore per day. In addition to an underground mine, the project includes an open-pit mine that will later be brought into production. Numerous delays and expiring credit lines have put the share under pressure in recent weeks. Most recently, the Company again raised fresh capital to further develop the mine in the US state of Nevada, where numerous automakers are pushing ahead with their e-car plans.
Due to high demand for financing, Nevada Copper increased the total volume to USD 114 million from the initially envisioned USD 75 million. The accompanying dilution of old shareholdings recently put the share price under pressure. The stock, which underwent a 10:1 reverse split a few months ago, is currently trading near historic lows. Given the high financing volume and the extended credit lines, the stock should now settle down and be able to play to its strengths again in the medium term. Nevada Copper is a cyclical stock where timing is the difference between weal and woe. Meanwhile, fundamentally, things look good: The three analysts in Canada who cover the stock see a 12-month price target of CAD 1.75 - the stock is currently trading at around CAD 0.76.
BYD: Well positioned for the future
The fact that copper is likely to benefit from electromobility and construction and infrastructure projects is supported by the rising sales figures of companies such as BYD. In recent months, the Chinese have gained market share because they have had fewer delivery problems than the competition, thanks to their chip production. And this is backed up by steadily rising sales figures. In the medium and long term, the chip and battery divisions should end up on the stock market and thus release further potential at BYD. In recent months, China's worries weighed on the stock, but things are now looking friendlier again - the value has been showing a steep upward trend since the middle of the year.
While BYD can boast an intact trend, the situation is quite different for Varta and Nevada Copper. While the German battery pioneer has to prove its ambitious plans, most of the hurdles at Nevada Copper should have been cleared by now. The share is a hot potato, but the fundamental situation around copper remains promising. The same applies to Nevada Copper's Pumpkin Hollow project in the heart of the e-car state of Nevada.