August 23rd, 2022 | 12:23 CEST
When will these stocks be let off the leash? TUI, Barsele Minerals, ThyssenKrupp
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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
TUI: When will the "new broom" take effect?
Travel group TUI should actually be feeling the boom these days: the summer travel season is reaching its peak, and by now, it should be clear whether the summer quarter was successful for TUI or not. After months of austerity and Corona measures, this summer was comparatively carefree. Many people flew on vacation. For the first time, far-away destinations were also in demand again. But the public debate about energy prices may have ultimately dissuaded many families from taking an expensive trip. So how was it then, the 2022 travel season?
If you believe the DERTOUR Travel Barometer 2022, the sky is full of violins for the industry. On average, vacationers are spending more than 50% more on their hotel stay, choosing better hotel categories, staying longer, and opting for all-inclusive. However, this travel hype is not yet reflected in TUI's share price. Although the quarterly figures two weeks ago were still comparatively good, TUI is becoming restless. According to Wirtschaftswoche, CEO-designate Sebastian Ebel is already cracking down at TUI and wants to trim the tour operator to digital solutions and "more mass". The ticket sellers on the Internet are the role model. The share is currently trading at its low. The share also continues to appear oversold. According to the motto "a new broom sweeps clean", new CEO Ebel could quickly provide a liberation blow. The coming weeks will be exciting.
Barsele Minerals: Enter cheaper than the pros
Barsele Minerals has also been exciting for a long time. The Company, which holds the gold project of the same name in Sweden and operates it together with joint venture partner Agnico Eagle, speculated for months on a complete takeover of the project. The reasons: Commodity producer Agnico Eagle wanted to focus on North America, and Barsele believed it could quickly bring the project in Sweden into production or spruce it up for a buyer with greater funding. These plans have not yet come to fruition. Agnico Eagle remains on board with Barsele and continues to bear the exploration costs under the closed joint venture. In addition, funds from additional financing, which Barsele Minerals announced a few days ago, will soon be available.
The Company initially planned to raise CAD 1 million in the form of 3.33 million shares at CAD 0.30. Each subscription unit would have included half a warrant in addition to 1 share. Each full warrant would have entitled the holder to purchase additional Barsele shares at CAD 0.45 within 24 months. After only a few days, Barsele Minerals doubled the total volume of the capital measure due to the high demand and confirmed that previous insiders would also participate in the measure. Barsele Minerals continues to expect to be able to prove a resource of up to 4 million ounces of gold with the necessary funds. Energy costs, which have risen sharply worldwide, should also continue to speak in favour of the Barsele project: In Sweden, electricity is unbeatably cheap thanks to nuclear and hydroelectric power. The share is currently trading in Germany below the level of the private placement. Anti-cyclical investors should keep Barsele Minerals on their radar.
ThyssenKrupp: There is justified hope
The analysts at Credit Suisse have also recently made a name for themselves as anti-cyclical investors - they issued a price target for steel group ThyssenKrupp that is three times higher than the current price. According to the Swiss, a share price of EUR 19.40 could be reached. The experts at Jefferies also still see the stock at EUR 13.80, well above the current level of EUR 5.71. ThyssenKrupp's stock is suffering from ongoing economic worries and fears of energy chaos in the winter. But the group with roots in the Ruhr region is better than its reputation: ThyssenKrupp has reinvented itself in recent years, selling some shareholdings and expanding others. Among other things, it wants to play a significant role in green hydrogen. It has also been able to increase both sales volumes and prices. There are signs of a turnaround at ThyssenKrupp - analysts also see a silver lining. However, this is still overshadowed by storm clouds. Those who are patient and courageous can profit in the long term.
In the short term, the ThyssenKrupp share could well be dragged down again. TUI is also under pressure. In the case of stocks such as Barsele Minerals, the bare figures ensure that the downside risk should be limited - as recently as last year, Barsele CEO Gary Cope saw the value of the Barsele project at CAD 450 million. In the short term, however, fluctuations are also possible here. Investors who think long-term can benefit from such phases of uncertainty and, with a well-calibrated investment compass, take the right direction early on!
Conflict of interest
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