First Majestic

06.09.2024

TESLA at the top of the NASDAQ-100 + C3.ai has to cut spending + Further acquisition in the precious metals sector + Major orders from the USA for headlight specialist Hella

TESLA $TSLA (+4.71%) at the top of the NASDAQ-100 - Climbing well above the 50-day line

C3.ai $AI (+7.06%) fell 19% after the AI software company missed estimates for quarterly subscription revenue as companies cut back on spending amid economic uncertainties.

First Majestic $FR (-0.46%) are pleased to announce that they have entered into a definitive merger agreement pursuant to which First Majestic will acquire all of the issued and outstanding common shares of Gatos. Gatos is a leading silver producer with a 70% interest in the Los Gatos joint venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico.

The headlamp specialist Hella $HLE (-0.35%) has received orders for electronics and lighting projects in the USA worth more than two billion euros. The company, which has been part of the French automotive supplier Forvia since the beginning of 2022, announced that series production for the unspecified US car manufacturer will start in Mexico within two to four years. For comparison: Hella is targeting currency and portfolio-adjusted Group sales of between around 8.1 and 8.6 billion euros in 2024.

Friday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Bank of America USD 0.26

PepsiCo 1.36 USD

Booking Holdings USD 8.75

Quarterly figures / company dates USA / Asia

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Quarterly figures / Company dates Europe

10:20 PSI Software Half-year figures

Economic data

• 08:00 DE: Trade balance July Trade balance calendar and seasonally adjusted FORECAST: +20.6 billion euros previously: +20.4 billion euros Exports FORECAST: +0.8% yoy previously: -3.4% yoy Imports FORECAST: +1.1% yoy previously: +0.3% yoy
• 08:00 DE: Production in the manufacturing sector July seasonally adjusted OUTLOOK: -0.2% yoy previous: +1.4% yoy
• 08:45 FR: Industrial production July OUTLOOK: -0.3% yoy previous: +0.8% yoy
• 11:00 EU: GDP (3rd release) 2Q Eurozone FORECAST: +0.3% yoy/+0.6% yoy 2nd release: +0.3% yoy/+0.6% yoy 1st quarter: +0.3% yoy/+0.5% yoy
• 14:30 US: Labor market data August employment ex agriculture PROGNOSE: +161,000 yoy previous: +114,000 yoy Unemployment rate PROGNOSE: 4.2% previous: 4.3% average hourly earnings PROGNOSE: +0.3% yoy/+3.7% yoy previous: +0.2% yoy/+3.6% yoy

....the gold/silver ratio is falling - silver seems to mean business. XDC & Epic have vacated their place in the portfolio for Majestic ;-).

In recent days it became quite quiet about the rumors of the acquisition of $1COV (+0.12%) .

In the meantime I am skeptical whether $ADNOCDIST meanwhile is willing to make a higher offer. Personally, however, I think that rather not.

Why?

Out of personal interest, I got into $BRKM5 (+5.56%) in December. It opened up a solid product portfolio in important niches for industrial production. Worth noting the large market shares in polypropylene, also bio-based, and ethylene crackers in Mexico. My entry price was 3.60€.

A few weeks later $ADNOCDIST with $APO (+2.21%) a takeover offer with a premium of 157% at the then price of 27.60 BRL.

In the meantime, however, this takeover is in the stars, as the two investor groups disagree on the financing.

For this reason, I took profits of about 50% this week and will nevertheless continue to monitor the situation, as it will definitely provide impetus for the Covestro takeover.

I reinvested the liquidated position in First Majestic $FR (-0.46%) , the German SmallCap Pferdewetten.de $EMH (-5.05%) (You wouldn't believe how popular horse racing is.) , and the problematic chemical giant Lanxess $LXS (-0.87%) whose portfolio is now worth more than its market capitalization. This does not even include the tangible assets of the industrial plants and the supply contracts with very well-known customers.

Even if the chemical industry is hard hit at the moment, it remains one of the mainstays of a modern civil society, along with the metal and electrical industries. If the apocalypse does not occur, we will be able to benefit from good earnings and therefore also good dividends in the long term.

Subsequent purchase