September 24th, 2021 | 10:26 CEST
VERBIO BioEnergie, Sierra Grande Minerals, Barrick Gold: Where timing is almost irrelevant
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"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
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.
VERBIO BioEnergie: The stock for a second look
VERBIO BioEnergie's stock has been on a roller coaster ride this week. After the promising figures, including record sales beyond the EUR 1 billion mark, investors took profits and sent the value down, in some cases significantly. The outlook for operating profit in the current fiscal year also prompted selling. At EUR 150 million, the Company sees this as lower than in the previous year. However, the mood on the stock market sometimes turns quickly. In the general price recovery, investors also dared to take a second look at VERBIO. The biofuel producer wants to invest and is launching a program specifically for this purpose. Analysts take a positive view of the investments. The share price recovered significantly and is now trading at almost the same level as before the slump.
The Company also sees itself in a good situation and emphasizes the friendly market environment for renewable fuels. Although the price slump has clouded the chart picture around the share a little, VERBIO meets the spirit of the times. When inflation was an issue a few years ago and oil prices rose noticeably, VERBIO also reached record levels. Although the share currently lacks further momentum, VERBIO BioEnergie is a case for the watchlist.
Sierra Grande Minerals: Mini valuation, maximum potential?
Another stock that investors can make a note of is Sierra Grande Minerals. While VERBIO produces biofuels and has an established business, Sierra Grande operates in an entirely different sector. The Company is a project developer and focuses on properties in the US state of Nevada. Here, Sierra Growth intends to gradually secure further properties with the prospect of possible raw material production. Most recently, the Company announced results from 1,895 soil geochemical samples. In doing so, the Company identified two promising trends indicative of both gold and silver. In part, the assays reached gold grades of 6,270 ppb (parts per billion).
Further assays are expected to provide insight into the project's prospects in the coming months. The exciting thing is that Sierra Grande Minerals is operating at an early stage. While any mining of gold is likely a long way off, the deposits are valued at a considerable discount. Currently, the entire Company is valued at only about EUR 2.6 million. The costs for further exploration are also limited. Those who want to get their foot in the door around gold and benefit from the growth of an early-stage company from low investment sums can take a closer look at the stock.
Barrick Gold: Where gold barely shines
When it comes to betting on gold, private investors never tire of buying Barrick Gold shares. But the share price performance of recent months does not bode well. The Company does profit when gold rises, but to a much lesser extent than smaller companies do. If gold slips, however, Barrick suffers a significant decline. This perceived asymmetrical development has cost many investors nerves in recent months. The weak growth at Barrick is considered to be the cause. For quite some time, new projects and fantasy have been missing around the share price. Last year, Barrick even had to pay a special dividend instead of investing the free funds.
In retrospect, it might have been better for the share price not to distribute the funds and thus create at least a little growth fantasy. The share has lost around 10% in the past three months. On a one-year view, it looks even worse with a minus of 35%. The stock is currently of little interest, but the slide in the share price could come to an end at the current level. However, this does not mean that things will go up quickly here.
While Barrick is one of the dullest stocks of all and VERBIO BioEnergie, despite the promising business field and the investments, cannot be a flawless rally candidate, at least in chart terms, investors do not have to worry about the timing with Sierra Grande Minerals. The share hovers around EUR 0.05 and waits for new momentum. Those who bring patience with them can put their foot in the door here at a reasonable price.
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