06. May 2021 | 05:17 CET
Volkswagen, Deutsche Bank, QMines: These trends are developing now!
The financial scene is currently dominated by two issues: The impact of technological change and changes in the wake of the pandemic and rising inflation. The first set of issues has pushed the markets for many years. Rising inflation has only recently become an issue. The economy held steady during the second and third waves and continued to grow slowly. At the same time, the anticipation of openings is growing. This explosive mix has already caused some commodity prices to rise. The market themes of technological change and inflation are cumulating in the price of copper, which has been rising dynamically for months, benefiting from both the e-car boom and the strengthening economy. We present three companies that could become trending stocks - and one of them went pubic today.
time to read:
ISIN: DE0007664039 , DE0005140008 , AU0000141533
Volkswagen: The new Tesla?
German automaker Volkswagen enjoys an excellent reputation worldwide. Although the emissions scandal caused heavy burdens and bad press at the time, VW remains a brand that stands for quality. In hindsight, the scandal surrounding illegal defeat devices in diesel cars was also good for something: Volkswagen oriented itself toward sustainability early on. This shift in strategy in the wake of the emissions scandal resulted in a high-profile e-car offensive in early 2021: Volkswagen plans to cover large parts of its supply chains and sell one million fully electric vehicles every year by 2025.
This announcement was well received on the stock market. In some circles, Volkswagen was even referred to as "the new Tesla." While this exclamation shows that the market is prone to euphoria, investors get a lot of substance for their money with VW. Thanks to the strategy shift, there is now also a growth perspective. On a one-year horizon, the share has already gained 100% - but has already corrected again. Investors can stay with Volkswagen, but it is uncertain whether the stock will soon make substantial gains.
Deutsche Bank is back
The Deutsche Bank share has also made good gains over the past year - the share price has risen by more than 70%. Recently, the German bankers impressed with a profit. Especially in investment banking, things are going well again. Added to this is the interest rate fantasy triggered by inflation fears. If interest rates rise again, banks benefit and can skim off more margin in their traditional lending business.
Anyone investing in Deutsche Bank shares today speculates that the Frankfurt-based Company will successfully master the structural change in the financial sector. The successes in investment banking already point in the right direction. If asset prices continue to rise after the pandemic, Deutsche Bank will also be able to cut itself a good slice of the pie. As higher interest rates become more likely again with rising prices, the bread-and-butter business could also pick up again with some delay. In the long term, the share still has potential, but setbacks cannot be ruled out in the short term.
QMines: The crystal clear commodity bet with good odds
An exciting investment story is offered by the Australian commodities Company QMines, which was launched today on the Australian stock exchange. The Australians focus on copper and gold, combining two of our time's most exciting investment themes: technological progress, including the mobility revolution and the trend towards rising prices. The combination of precious and industrial metals has also convinced the analysts at RaaS. The experts attest to QMines' competent management, promising projects that are also well integrated into existing infrastructure, and robust market demand for commodities.
In total, QMines is advancing four gold and copper projects in the Australian state of Queensland. The flagship project is Mt. Chalmers, where resources have been mined sporadically in the past. An initial resource estimate sees an inferred resource of 3.9 million tons with grades of 1.15% copper, 0.81% g/t gold and 8.4 g/t silver. However, the Company itself emphasizes enormous exploration potential and plans to drill between 32 and 62,000 meters over the next two years.
Even though QMines is still in the early stages, the Australian Company's stock offers a crystal-clear scenario. If it succeeds in expanding the existing resources and advancing the project, the stock can benefit from both the fantasy surrounding copper and the demand for gold. With a market capitalization of around EUR 20 million, QMines is a small-cap with room for growth. Although the stock is much more speculative than VW or Deutsche Bank, good news from the upcoming drilling program can also provide the value much more momentum than is the case with established blue chips. For those who like speculative stocks, QMines is a stock whose trend is still at the beginning.