The proliferation of electric cars in the future is taken as a given, but it depends on a stable supply of very rare metals. Cobalt, for instance, is primarily found in the DRC, an extremely politically unstable region of the world.
This is why the interest of battery manufacturers towards Sweden and Finland is growing. Sweden, for, instance is the only European country that has deposits of every rare metal needed for batteries, especially lithium and cobalt.
The Finnish mine Kokkola Works, for instance, owned by Outokumpu OY, accounts for 10% of worldwide cobalt production. And despite these new-found deposits, demand for cobalt is set to outpace supply in the next five years.
Fundmental analysis: OUT1V.FI
The relative valuation of OUT1V.FI is atrtractive compared to its peers.
The DuPont analysis shpows growing margins, growing ROE and lower leverage:
These are the most important valuation multiples for the company:
Technical picture: OUT1V.FI
The technical picture shows no attractive entry points.
We recommend the stock to long-term investors who will enter the market once the technical picture has finally turned around. In particular, we will monitor the stock for break outs above the downwards trend, as well as break outs above the 100- and 50-week MA.
Source: Bloomberg Finance L.P.
Chart: Used with permission of Bloomberg Finance L.P.
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25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
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