April 28th, 2021 | 07:36 CEST
VW, Silkroad Nickel, E.ON - Mega electricity storage, the next big thing
Table of contents:
"[...] China has become the manufacturing capital of the World, and because of its infrastructure, expertise and capabilities, Silkroad Nickel has strategically positioned itself to partner with Chinese companies in the Stainless Steel and EV industries [...]" Jerre Foo, Corporate Development Executive, Silkroad Nickel
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
VW - Bidirectional batteries
VW wants to create a unique selling point in the field of car batteries. The Company plans to use bidirectional batteries by 2022. These can use the electricity not only for driving but also for a storage device that can also deliver the electricity again, for example, to the household. The idea is that the one's car just sits around most of the time.
But the Company is currently facing bad news. Deutsche Umwelthilfe (German Environmental Aid) has won access to the files on the VW emissions scandal from the Ministry of Transport. In addition, the chip crisis remains and it is feared that it could get even worse. As a result, the entire production is coming to a standstill.
So after the highs in March and the fantasy around electromobility, clouds are now appearing. Since Monday, the share has been falling and is still caught in the sideways range between EUR 214 and EUR 252.
Silkroad Nickel - Focused on growth
Silkroad Nickel published its 2020 annual report on April 15, and like almost all companies, Corona took a significant hit. Sales collapsed from around USD 15.5 million in 2019 to USD 0.5 million, as work was simply not allowed in Indonesia.
Things have been looking up since the beginning of this year. In January, cooperation with Ganfeng Lithium was agreed. Together, they want to exploit the e-mobility market. In March, the Company announced an offtake agreement with Tsingshan, probably the largest stainless steel producer in the world, for USD 90 million over the next 2 years.
The money is to be used to finance an RKEF smelting plant. Although this will cost USD 400 million, it will be refinanced within 2 years and is another step towards becoming a complete nickel producer. In addition, other plants have been established to take advantage of demand from the stainless steel and electric car markets.
Nickel is essential for battery construction. Not for nothing has Elon Musk called for more nickel to be mined.
Management is on an excellent strategic path, and with the new agreements, the Company should be on an upward trend in the long term, which should also boost the share price.
E.ON - In the wake of electromobility
As an electricity provider, electromobility offers many opportunities. E.ON is also in the local battery storage space by storing solar power. According to a press release, the Company expects further significant growth in e-cars in Germany. One can assume an annual growth of 24% until the year 2030. As a result, electricity consumption in Germany will continue to rise.
The share has been able to break out of the long downward trend and is currently trading above the psychologically important EUR 10 mark. One possible explanation is the decline in 10-year government bonds. Due to the high level of debt, the share can undoubtedly be described as sensitive to interest rates.
Another possibility is the dividend. It will be paid in May, and at just under 5%, it is one of the best shares in the DAX. It was probably the dividend that attracted the Norwegian pension fund. It now holds E.ON shares worth almost USD 464 million. Goldman Sachs has issued a price target of EUR 12.
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.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.