Relief for Bayer. In the U.S., the company has won a victory in the dispute over compensation for illnesses caused by the chemical PCB. Is it groundbreaking and the start of a revaluation of the stock?
A revaluation already seems to be underway at Power Nickel. Following sensational drilling results, the share price soared. Surprisingly, gold, silver and copper were also found. Against this backdrop, the stock appears to be favorably valued.
Does this also apply to Nel? After all, the share price has risen by around 20% in just a few weeks. Is there new hope for the hydrogen pioneer? Or are today’s figures from industry peer Plug Power threatening a new sell-off?
Power Nickel: More than 100% upside potential?
Will surprisingly positive drilling results from the Nisk project in Canada lead to a revaluation of the Power Nickel Inc. (TSXV:PNPN) stock? It certainly looks like it. After all, Nisk is the most important project in Power Nickel’s portfolio. CEO Terry Lynch: “We feel we have found a large, productive area that hosts different types of multi-element mineralization, each a small part of a much larger system. We look forward to intensifying our efforts in ’24 and ’25 to bring these targets to a production decision.” Recent drilling has not only proven nickel, platinum and palladium, but also serious quantities of gold, silver and copper. Not surprisingly, Power Nickel has increased its interest in the Nisk project from 50% to 80%.
The convincing drilling results also caught short sellers on the wrong foot, and Power Nickel shares doubled to over C$0.40 within a few weeks. Anyone expecting a decline afterwards was disappointed. After a brief consolidation, the share is now at C$0.45. This strength and the still manageable market capitalization of around C$70 million points to further price rises, especially in the current hype surrounding gold and copper. Investors can look forward to further drilling results.
Bayer: Positive news at last
Bayer AG (OTCPK:BAYZF) has been slowed down by legal disputes for years. Best known are the class action lawsuits in the U.S. concerning the weed killer glyphosate and the PCB chemicals. Bayer brought both problems into the company with the takeover of Monsanto, whereby the production of PCBs had already been discontinued in 1977. Bayer has now won an important victory in the dispute over PCBs, which have been banned for decades. An appeals court in the state of Washington has overturned a ruling from 2021. This involves damages totaling US$185 million for three plaintiffs. Due to flaws in the judgment, the case must be reopened. This could result in further lawsuits by around 200 people. From Bayer’s point of view, the products that caused the illness – such as lighting fixtures and sealants – were manufactured by other companies and should have been replaced long ago.
Although Bayer’s share price rose slightly after the announcement, it cannot be described as a liberating blow. Analysts also remain skeptical. Barclays, for example, has maintained its “equal weight” rating. The price target of EUR 28 has also stayed the same, and the analysts, therefore, see no upside potential. The victory in the appeal is surprising and, of course, positive, but the whole issue remains opaque, and the consequences for Bayer are difficult to quantify.
Nel: Turnaround cancelled
Has the turnaround at Nel ASA (PINL:NLLSF) been cancelled again? It certainly looks like it. Wednesday alone, the shares lost more than 5%. The hydrogen specialist’s partnership with Hy Stor Energy in the U.S. had raised hopes that the downward trend could be reversed. For the project, Nel could supply alkaline electrolysers with a capacity of more than 1 gigawatt. However, this is not yet a concrete order, but only a reservation, so investors remain cautious. Especially as Plug Power will report figures Thursday – this will also likely impact Nel.
Analysts are also currently reluctant to take cover. Although Berenberg and Goldman Sachs recently recommended the Nel stock as a buy, the price targets of 8 Norweigan kroner (NOK) and NOK 6.20 are anything but ambitious. After all, the 52-week high is over NOK 14.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the company at any time (hereinafter each a “Transaction”). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Join the discussion: Head over to the Bullboards at Stockhouse’s stock forums and message boards to share your market outlook and hear what everyone is saying about these and other stocks.
This article is submitted contributor content. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.