December 3rd, 2020 | 14:29 CET
Xiaomi, Blackrock Gold, Nio - The way is clear!
It continues upwards, well this is how the three big US investment banks Morgan Stanley, Goldman Sachs and JP Morgen see it. Due to the positive results concerning a vaccine against the coronavirus, Morgan Stanley expects the economy to revive and expects long-term price increases. Year ending 2021, the experts see the price target for the S&P 500 at 3,900 points, which would be a healthy growth of over 7%. According to the analysts, stock-picking - the finding of "hidden treasures" on the stock market - will be particularly important next year.
time to read: 3 minutes
|
Author:
Stefan Feulner
ISIN:
CA09258M1014 , KYG9830T1067 , US62914V1061
Table of contents:
"[...] Having Investors like Robert Friedland and Rob McEwen come in with CVMR and Terra Capital really was terrific. [...]" Terry Lynch, CEO, Power Nickel Inc.
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
Tag cloud
Shares cloud
The two rocks
Stock picking is also important for gold mining stocks. After the gold price has corrected since August from over USD 2,000 to currently USD 1,800, the chances are all the better of finding "hidden treasures" here too. One exciting Company is the Canadian explorer Blackrock Gold, which is working on two promising up-and-coming precious metal projects in the US state of Nevada. At the largest 100% controlled Tonopah West project on Trend Walker Lane in western Nevada, the Canadians reported last week the discovery of a new vein zone on target Victor and numerous high-grade gold and silver intercepts.
Expectations Exceeded
Andrew Pollard, CEO of Blackrock Gold, commented on the results as follows: "Our drilling that is expanding the mineralized zone at the Victor target continues to encounter exceptional values, and a new high-grade vein zone has been identified. We are the first to focus on this historic mine since its closure in 1930 due to low metal prices. We have refined our geological model of the massive mineralized structure encountered in drill hole TW20-001 (29 metres grading 965 g/t AuEq)". With results pending on several completed drill holes from numerous target areas, a continued positive news flow is expected for year-end.
Spin-off Imagination
In early November, Blackrock announced the start of a 3,500-metre drill program on the second project located in their Silver Cloud property. The area is attractive because the geology bears many similarities to the Hollister Mine operated by Hecla Mining. Exploration of whether Silver Cloud could be the western extension of the deposit is planned to be completed by year-end. Currently, management is considering transferring the Silver Cloud project to a new subsidiary as a spin-off, which could give the stock some more imagination. The market value is currently just under EUR 30.0 million. Since August, Blackrock Gold has lost more than 50% and is presently trading at CAD 0.66. Due to the very positive development, there is a lot of potential for hype.
Goldman wakes up
Such an upgrade, like yesterday, at the electric car manufacturer Nio is rarely seen. None other than Goldman Sachs, upgraded the paper from "sell" to "neutral". The price target was raised from USD 7.70 to USD 59 - an incredible increase. The positive trend is confirmed by the November sales figures published yesterday. Nio delivered a total of almost 5,300 electric SUVs, which is more than double the November 2019 figure. In the previous month, deliveries totalled 5,055 units. The electric car manufacturer had increased its production capacity to around 5,000 vehicle units in September 2020. On the negative side, sales of both the ES6 and ES8 SUV models were weaker, due to the launch of the new EC6 model in September.
Share plummets
Due to the cannibalization of the various Nio models as well as a slowdown in the dynamics of sales, the Nio share was penalized. The share suffered a loss of more than 10% at the start of trading and was quoted below USD 40 in some cases. In the day, the share price turned around and, at USD 47, was already up 3%. The smartphone manufacturer Xiaomi also slipped into the red by up to 12%. It was triggered by the most extensive share placement by a listed company ever carried out on the Hong Kong stock exchange.
Momentum used
The reason for this sudden move was the strong growth in sales and earnings figures in recent months. Most recently, Xiaomi was able to increase its Company turnover by more than a third compared to the previous year, with the lion's share coming from the sale of smartphones. The operating result also grew disproportionately. Xiaomi benefited from the tightening of US sanctions against its competitor Huawei. However, this situation could change quickly if the new president Biden moves closer to the Middle Kingdom again. For this reason, the capital market quickly raised a total of USD 4 billion in a mixture of stocks and bonds. Even if the shares were issued at the lower end of the price range - a smart move!
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.
Risk notice
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.
The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.
