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Aurora Cannabis, Lufthansa, Saturn Oil & Gas, TUI - the twofold candidates

Mario Hose Mario Hose, news.financial
0 Comments| May 25, 2020

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In the context of the Corona Pandemic, share prices came under pressure from numerous sectors and companies. The continued existence of renowned companies was at risk shortly after the announcement of measures against the spread of Covid-19. In order to prevent worse, the state had to use financial support programs to secure the existence of companies after its restrictions to protect people's lives. Every crisis also offers opportunities, and investors can now take advantage of them.


Recovery of the oil price

Saturn Oil & Gas (TSXV: SOIL) is a young oil producer from Canada. The management took over the company in 2017 and developed it into a success story. In 2018, the stock peaked at CAD 0.30 and the company was worth over CAD 60 million. In connection with the drop in oil prices, the share of Saturn Oil & Gas also came under pressure. However, the management announced in a press release that a production hedge was contracted at a price of over CAD 65.00 per barrel. The market value of Saturn Oil & Gas currently stands at around CAD 25 million at CAD 0.12. Whoever assumes that oil from a country that stands for environmental protection and human rights will continue to be in demand in the future will probably not do anything wrong with the shares of Saturn Oil & Gas.


Cannabis company with a chance

Aurora Cannabis (TSX: ACB) is one of the most famous companies in the industry. The value of the cannabis player has come under considerable pressure during the Corona Pandemic, but has recently been able to recover significantly from its low of CAD 7.50. At CAD 22.48, the market value is again CAD 2.28 billion. Whoever wants to enter the cannabis sector as an investor, should not rely solely on the size of the company. Nobody is too big not to fall and for this reason a proper research is advisable.


Return of the wanderlust

Lufthansa (FSE: LHA) and TUI (FSE: TUI1) are not only linked by the travel business, but also by the fact that a state bailout ensures the continued existence of these companies. The two companies got into economic difficulties through no fault of their own and it is to be expected that they will be able to return to their former strength after the end of the Corona Pandemic. Due to the size of the two companies, a relevance for the public benefit is obvious. Lufthansa is one of the world's largest airlines and TUI one of the largest tour operators. The market value of Lufthansa is around EUR 3.8 billion and TUI is valued at around EUR 2.0 billion. When the population is allowed to and can travel again, then it will certainly do so.


CONFLICT OF INTEREST & RISK NOTE
We would like to point out that Apaton Finance GmbH, the owner of news.financial, as well as partners, authors or employees of Apaton Finance GmbH may hold shares in the aforementioned companies and that there may therefore be a conflict of interest. Further details can be found in our ´Conflict of Interest & Risk Disclosure´.


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