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May 10th, 2021 | 11:10 CEST

VW, BYD, Plug Power, Almonty - The e-mobility breakthroughs!

  • Tungsten
Photo credits: almonty.com

Driving electric vehicles is becoming more and more popular! The Volkswagen Group delivered 133,300 electrified vehicles in the first quarter - more than twice as many as in the previous year, as the Wolfsburg-based Company points out. 59,900 buyers (+78%) opted for a fully electric vehicle, while plug-in hybrid drive models still lead the way, reaching sales of 73,400 units (+178%). Tesla, the self-proclaimed e-mobility technology leader, only managed 499,550 vehicles in the whole of 2020 (+36%). What does this mean for the manufacturers' shares?

time to read: 3 minutes | Author: André Will-Laudien
ISIN: VOLKSWAGEN , DE0007664039 , CNE100000296 , US72919P2020 , CA0203981034

Table of contents:


    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

     

    VW - Another sales record, but the share price stutters

    VW is leading the European electric vehicle business with its numbers. Now a whole range of new models is coming to market. The new VW ID.6 is a 4.87-meter electric SUV that will be launched in China before year-end 2021 and has a range of up to 588 kilometers. The VW ID.6, which made its debut at the 2021 Shanghai Auto Show in April and will go on sale before the end of 2021, behaves as a five-meter-class SUV. With this size and range, VW is reaching another customer group, long-distance drivers.

    VW's stock plunged 15% in April as its Audi subsidiary was also only able to deliver a subdued outlook. Then there is the chip shortage, which is now causing delays of several weeks in deliveries. From a chart perspective, the share price should not fall below EUR 204.

    BYD - The consolidation continues

    We recently looked at the BYD share because the share has been trending downward for weeks since reaching its high of EUR 29.50 in January. On the one hand, there were the not so good figures for the first quarter, on the other hand, the continuing price weakness has now produced new and, above all, chart-technically important sell signals.

    More than three months after the triumphant movement, the title finds itself noticeably below the 200-day line, and on Friday, the downward movement on the Hong Kong stock exchange even marked a new 6-month low of HKD 144.30. Much will depend on how the BYD share comes into the new week today; competitor Tesla managed a small plus on Friday. In recent days, the BYD share oriented itself to the falling lower Bollinger Band; with a view of the chart, there are no massive support zones for now. We recommend a buyback of the share only after a collective Stop-Loss sale in the zone EUR 12-15 and the subsequent closing price at the daily high.

    Plug Power - Is a countermovement possible here?

    The chart is also heavily hit at Plug Power; we had familiarized you with the situation at an early stage. Weak quarterly figures from Nel ASA and Ballard Power, among others, caused gloom within an entire industry from Tuesday last week. Prices took a nosedive at times.
    One of Warren Buffett's most famous quotes is, "It is only when the tide goes out that you discover who has been swimming without a bathing suit." In other words: When the overall stock market stops rising, those who invested in unsustainable trends will suffer significant losses. Whether this is the case with Plug Power remains to be seen.

    The Company keeps reporting impressive partnerships, the most recent of which was its line bus deal with British defense heavyweight BAE Systems. Green billions from Washington and Brussels should also underpin its future. Plug Power has now arrived at its December level, calculated from above, this is a loss of just under 70%. The long-awaited buying opportunity presents itself now - those who dare build up the first position.

    Almonty Industries - The high-tech metal tungsten

    If you think of the high-tech industry, you should give a few thoughts to Almonty Industries because the unique properties of tungsten are indispensable for certain purposes. Tungsten is a lustrous white heavy metal of high density and the chemical element with the highest melting and boiling points. Its best-known historical use is as the filament in lamps and tubes; today, its application is as an alloying metal with exceptional hardness and density.

    It is so important in military applications that it is now considered a strategic metal in political terms. Alternatively, certain security products could only be made with uranium, which is much more abundant than tungsten but much more difficult to mine and the accompanying safety standards.

    Tungsten is produced primarily in China, Peru, the United States, Korea, Bolivia, Kazakhstan, Russia, Austria and Portugal. The sites are highly selective, with China dominating the market with about 80% of world production. Almonty has tungsten mining sites in Spain, Portugal and South Korea. All three mines combined account for a good single-digit percentage of world production; the mine in Korea secured KfW financing in 2020 and is likely to go into production in 2022. The Company has filed for a listing in Australia, and in Canada, AII shares are trading at a stable CAD 1.11. In the current commodity rally, a significantly higher valuation is likely to take place here as well.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



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