Volkswagen AG Trading forecasts and signals

German automaker Porsche is increasing its investment in the development of climate-neutral electric fuel designed to replace gasoline in traditional internal combustion engines. The company plans to acquire a 12.5% stake in Highly Innovative Fuels Global worth $75 million.E–fuel is a clean, carbon-neutral fuel produced from renewable, environmentally friendly hydrogen and carbon dioxide taken from the atmosphere. It can work like gasoline, allowing owners of modern and classic cars to drive on more environmentally friendly ...

In March, there was a significant rise in the shares of the Volkswagen automobile concern. In April, the shares went sideways. Let's look at the latest developments in the company and the near-term prospects.In the spring, the reason for the growth was the company's new strategy in the electric car market, according to which VW plans to displace the current leader — Tesla. At the moment, the capitalization of VW is $121.3 billion, which is more than 5 times lower than the cost of Tesla — $635.4 billion. Recent events The concern unites 12 brands: Volkswagen, Audi, SEAT, SKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen commercial vehicles, Scania and MAN.Porsche owns 27% of Rimac, a Croatian manufacturer of high-tech electric cars. This week it became known that Porsche, Rimac and Bugatti will create a joint venture.Rimac will own a controlling 55% stake in Bugatti-Rimac, and Porsche - 45%. Volkswagen will transfer Bugatti to a joint venture, and Mate Rimac, the founder of Rimac, will lead it. The decision is positive, since now Volkswagen can focus on the development of the Audi and Porsche brands.The share of sales in the North American market is significantly lower than the European and Asian markets. But Volkswagen of America said it sold more than 211,000 cars in the first half of 2021, the highest level in almost 50 years, and plans to sell more than 400,000 cars this year.The company expects that the shortage of chips will decrease in the third quarter of 2021. She also said that the crisis will not affect profit forecasts this year.According to the company's representative, Volkswagen still expects to achieve an operating profit margin of 5.5% to 7% for the group and from 3% to 4% for its main brand by 2021.At the moment, 19 out of 25 recommendations are for buying, 5 are for holding and none are for selling. The average target is 275.5 euros, and they vary in the range of 185-330 euros. Technical picture As we have already noted, the quotes went sideways within 200-240 euros. The daily RSI is located near the overbought zone, and the MACD curves are directed downwards.Now the main risk is a descent under 200 euros. In mid-May, the first correction wave ended here and the price rushed up. In this scenario, we can talk about a test of 190-180 euros.To resume the upward trend, first of all, you need to break above the 21-day moving average and test 220 euros. Then the road will open to 235-240 euros. Overcoming the resistance range contributes to further growth and updating of the annual maximum. In the long term, this scenario remains the key one. Finally VW's plans have helped the stock grow significantly this year. The main events have already been incorporated into the quotes, and the overheating has been removed from the securities. This makes them interesting for buying in the medium and long term.Although the electrification of cars will take a long time, the group has all the necessary resources to implement the strategy. But the risks are also present. First of all, the results of sales of traditional cars will affect the quotes for a long time. Then there are competitors, as a battle for customers between all automakers is unfolding in the electric car market.In my opinion, VG shares are interesting as part of diversification, receiving dividends in euros, as well as as a bet on one of the leaders of the automotive market, which is striving for full electrification. Until the end of the year, the target is the range of 245-250 ...

Companies registered in the United States have always been larger than their European counterparts, but over the past year the gap has widened. The total market capitalization of the 10 leading European companies at the end of March 2021 was just over 2.3 trillion US dollars, according to the PwC rating of the Top 100 global companies of 2021. This is slightly more than Apple's market capitalization of $2.05 trillion.Meanwhile, the 10 largest US companies were worth a whopping $10.2 trillion, which is 4.4 times more than the 10 largest European companies. The gap widened compared to the previous year, when the 10 largest US companies were 3.5 times more valuable than the 10 largest European companies (USD 6.3 trillion versus USD 1.8 trillion). Moreover, the most expensive European company this year would not even get into the top ten in the United States.The gap widened mainly due to the fact that the US market, led by technology stocks, outperformed European markets for the year ending in March 2021. The five largest US companies by capitalization are technology companies. The value of the 10 largest US companies during the analyzed period increased by 69% compared to the growth of only 38% of the 10 largest European companies.This year, four companies fell out of the top 10 European companies: SAP, Royal Dutch Shell, Unilever and Medtronic. They were replaced by the Dutch semiconductor company ASML Holding; Prosus, the international Internet assets division of the South African Naspers group; Accenture, an Irish business services provider; and the German car manufacturer Volkswagen. Volkswagen and ASML also became the fastest-growing European companies that entered the Global Top 100 last year.The French luxury concern Louis Vuitton Moet Hennessy (LVMH) has risen to the top of the European rating, overtaking the slow-growing Swiss companies Nestle, Roche and ...