Investors and speculators have a common interest: they want to make money. While investors usually plan for a longer time frame, speculators often just wait for the next good company news, then exit and move on. Listed companies that are the focus of attention and show a certain degree of volatility offer an excellent opportunity for both investment profiles - especially on weak days. There are good reasons why three companies are particularly interesting at the moment.
Great interest in financing
Desert Gold Ventures (TSXV: DAU) is active in gold exploration in West Africa and owns projects of more than 400 km2. The company has released two good news releases this week, which are very exciting. Firstly, management has been able to confirm and expand on the assumptions about gold deposits on the projects in the latest drill program, setting the stage for further exploration work in the fourth quarter of 2020. In addition, financing of CAD 6.8 million was completed. The capital increase was originally planned at CAD 6.5 million.
The oversubscription in magnitude is a good sign as it demonstrates investor confidence in the projects and management, and the company now has sufficient liquidity for the upcoming drilling programs.
Gold is becoming rarer and more precious
The gold sector is particularly interesting and especially the exploration sector. The gold reserves of the largest producers have declined significantly since 2012, by more than 34%. In addition, it is expected that the production volume will decrease from 2020 onwards. According to experts, the amount of gold produced annually is expected to decrease by 45% from currently 118 million ounces in 2020 to around 65 million ounces in 2029.
Even amateurs can imagine the impact this decline will have on the price of gold. In addition, producers must continually ensure that mineable reserves remain at a certain level to ensure future revenues. This is why exploration, i.e. the discovery of new gold deposits, is important. The Desert Gold projects are located in the neighborhood of the producers
B2Gold (TSX: BTO), Barrick Gold (TSX: ABX) and
Iamgold (TSX: IMG) and therefore the potential acquisition is a realistic scenario.
Hydrogen makes diesel greener
The technology company
dynaCERT (TSX: DYA) has developed an innovation that offers environmental advantages. The hydrogen technology is called HydraGEN and is offered for retrofitting of diesel engines. The inert gas is generated on demand and enters the combustion process via the air supply.
As a catalyst, the energy carrier increases the efficiency of combustion and ensures that fuel consumption is reduced and pollutant emissions are lowered.
United Nations and 700 workshops
In August, dynaCERT published several news releases that announced enormous potential. On the one hand, the company has made it into a United Nations program in which 200 cities worldwide are already participating.
It is expected that in the future cities will order the hydrogen technology from dynaCERT. In addition, the company announced that in the future besides the automotive logistics company Mosolf also the workshop network Alltrucks in Europe will be able to offer, install and maintain the HydraGEN devices. Alltrucks is represented in 12 countries with 700 workshops and is a joint venture of the leading automotive and commercial vehicle suppliers Bosch, Knorr-Bremse and ZF.
Corona has hacked second quarter
The past quarter of dynaCERT was impacted by the restrictions related to the Corona Pandemic. For this reason, the company was not able to generate any special revenues.
In an appropriate stock market environment and with success stories in sales, the share has the potential to exceed the February high of CAD 1.25.
Pharma without research risk
The situation at
Valeo Pharma (CSE: VPH) is also extremely exciting. The company focuses on the commercialization of medical products in Canada.
Valeo Pharma does not conduct any research itself and therefore does not have a high cost risk or capital requirements, as is usually the case with research-based biotechnology companies. The company has numerous products in commercialization and a pipeline of other products awaiting regulatory approval. One of these products is Hesperco and, according to recent announcements, can be used as an immune supportive product to potentially fight the symptoms of Covid-19.
Capital increase offers entry opportunity
In connection with a financing round in the amount of CAD 6 million at a price of CAD 1.20, the share price is still capped until closing. Conversely, investors now have the opportunity to purchase the company's shares at this price level. With the additional liquidity from the capital increase, the company can strengthen its growth.
Five weeks ago, the share price peaked at CAD 1.86. There is potential for new highs in connection with the commercialization of the Covid-19 product.
Diversification offers itself
Investors, who have all three companies in their portfolio, are diversified in
special situations in the trend areas gold, hydrogen and Covid-19.
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 long or short positions 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.