Standard Uranium: Speculation on the Big Discovery
For Standard Uranium, the future will be decided several hundred metres below ground. The Canadian company is exploring uranium projects in the Athabasca Basin in Saskatchewan, a region known for its high-grade uranium deposits. Its flagship project, Davidson River, covers 30,737 hectares. The well-known Arrow and Triple R deposits are located about 25 km away. It is a prominent neighborhood that sparks the imagination. However, only successful drilling will reveal whether an economically viable treasure lies beneath the company’s own land.
This is exactly where the largest drilling program in the company’s history—announced for 2026—comes into play. The plan is to drill more than 8,000 m using two drilling rigs. By comparison, from 2020 to 2022, a total of 16,561 m were drilled across 39 boreholes. With more than 70 km of promising geological structures, this vast area has been explored only sporadically so far.
The search will now be conducted in a more targeted manner. Standard Uranium is combining geophysical surveys, three-dimensional subsurface models from Fleet Space, and machine learning from ALS GoldSpot. Put simply, the data is intended to show where fault zones and altered rocks form particularly promising drill targets. The focus is on the Bronco, Thunderbird, and Warrior corridors. Back in June, the company reported elevated radioactivity in the first drill hole, with peaks of 1,650 counts per second. This is an encouraging sign, but it does not yet indicate economically viable uranium grades. That will require laboratory analyses and additional hits to confirm the size and continuity of a potential mineralization.
The project generator model opens up additional opportunities. Standard develops exploration targets and brings partners on board who finance further exploration in exchange for acquiring project stakes. At Corvo, Aventis Energy can acquire a 75% stake within three years. This is to be funded, among other things, by CAD 4.5 million in exploration expenditures as well as cash and stock payments. Standard carries out the work and receives fees. A similar model applies at Rocas with Collective Metals. The advantage: multiple projects can advance without bearing all drilling costs alone. In the event of success, a large portion of the project is transferred in return.
Corvo provided new evidence on August 20. Elevated uranium concentrations were detected in all 9 completed drill holes. In total, the intervals with slightly elevated values amount to 55 m, including 13 m with more than 100 ppm of uranium. This is explicitly not a continuous 55-m ore zone. The results provide evidence of a uranium-bearing geological system and will help select future targets. The previously reported surface samples containing up to 8.10% uranium oxide are also isolated and cannot be extrapolated to an entire deposit. A second drilling phase is already planned for 2027. Partner Aventis is financing the exploration under a three-year earn-in model.
Financially, Standard remains a typical exploration company. As of the end of April, it had approximately CAD 2.86 million in cash; working capital amounted to CAD 2.09 million. Operating fees from partner projects totaled approximately CAD 302,000 during the fiscal year. By comparison, general and administrative expenses alone amounted to approximately CAD 705,000. From May through early August, gross proceeds of approximately CAD 1.86 million were raised through additional placements. In early August, a strategic capital increase of CAD 3 million was agreed upon. This creates financial flexibility but also increases the number of shares outstanding. The funds are intended, among other things, to advance exploration in the Athabasca Basin.
The opportunity for investors lies in the discovery of uranium deposits, which could significantly increase the company’s value. If Standard Uranium strikes a high-grade deposit on one of its properties, this could become a decisive catalyst for a revaluation of the still undervalued exploration company. This hot stock, which, at the current price of CAD 0.08, has a market capitalization of only about CAD 12 million, has the long-term potential to multiply in value. However, this micro-cap stock is currently suitable only for highly speculative investors who can assess the risk.
Volkswagen: Radical Overhaul for the Auto Giant
Fewer models, less complexity, more profit: Volkswagen finally wants to shed operational dead weight. On September 3, the supervisory board unanimously approved the Future Plan 2030. The goal is ambitious. By 2030, Germany’s largest automaker aims to raise its operating margin to 9%. That would correspond to an operating profit of around EUR 31 billion.
To achieve this, CEO Oliver Blume is making deep cuts. By 2035, the model portfolio is set to shrink by about half, and the complexity of the product lineup by as much as 75%. In addition, the company needs to adjust the workforce by approximately 50,000 positions worldwide, in addition to existing programs. In Europe, capacity currently exceeds demand by more than 500,000 vehicles. For Emden, Zwickau, Hanover, and Neckarsulm, competitive follow-on production from 2031 through 2034 has not yet been secured. Alternative uses are also being explored.
However, cost-cutting alone will not put Volkswagen back on the fast track. The Group is therefore seeking new growth opportunities in India. On September 9, a non-binding agreement with the JSW Group was announced: a partnership for the development, production, and sale of passenger vehicles is being explored. Skoda Auto Volkswagen India would contribute engineering and product expertise, while the Indian conglomerate would provide manufacturing capacity and local implementation experience. This is not yet a finalized deal, but the strategic direction is right.
In the world’s third-largest auto market, Volkswagen currently holds only about a 2% market share. A locally based partner could help tailor the product lineup better to Indian customers and reduce costs through increased local sourcing. JSW is already familiar with the auto business through its collaboration with SAIC on the MG brand. Given the weakness in China, this move makes sense. In the medium term, India could offset some of those losses. However, investors should not assume this will quickly replace previous profits from China.
Skepticism is palpable on the stock market. VW’s preferred stock has lost more than 20% since the start of the year. Analysts expect earnings per share of EUR 16.66 for 2026. This results in a P/E ratio of just 4.9. For 2027 and 2028, consensus estimates stand at EUR 21.37 and EUR 24.48 in net earnings per share, respectively. If these estimates materialize, the P/E ratio will drop to 3.8 and 3.3. The expected dividend yield rises from about 6.7% for 2026 to 8.1% the following year. That sounds tempting, but it assumes profits will materialize and dividends will follow.
The key driver lies in profitability. Consensus estimates project revenue to rise from approximately EUR 322.6 billion in the current year to EUR 333.6 billion in 2028—an increase of barely more than 3% overall. Earnings per share, on the other hand, are expected to rise by about 47% over the same period. To achieve this, Volkswagen must, above all, extract more value from its existing business. Even a one-percentage-point increase in the operating margin, assuming revenue remains unchanged, would translate to an additional EUR 3.2 billion in operating profit. This is precisely why fewer variants, better-utilized plants, and lower costs can make such a significant difference.
Analysts remain divided, however: 13 “Buy” recommendations are offset by 10 “Hold” ratings and 3 “Sell” recommendations. The average price target of EUR 103.89 is about 27% above the current share price. A low price-to-earnings (P/E) ratio alone, however, is not enough to drive the share price higher. The restructuring will cost money initially, and the hoped-for margin recovery must prevail against competitive pressure. The plans for India add an interesting growth opportunity to the turnaround story. For now, however, the stock remains a “Hold”. Volkswagen will deserve more confidence only once cost-cutting plans and partnership talks translate into measurable progress.
Inditex: Zara Keeps Gaining Momentum
Zara’s parent company, Inditex, shows what consistent optimization can achieve. Half-year revenue rose by 7.6% to EUR 19.8 billion, and by as much as 9.2% on a currency-adjusted basis. Bottom line, the Spanish company earned around EUR 3 billion, an increase of 6.8%. The gross margin improved by 0.4 percentage points to 58.7%. However, higher transportation and logistics costs weighed on operating income, which came in at around EUR 3.8 billion—falling short of market expectations.
Inditex’s store count fell by 84 over the past year to 5,444. Nevertheless, revenue is rising. Larger, more efficient locations are replacing smaller stores and are closely integrated with online retail. They also serve as pickup points and logistics hubs. Added to this is the company’s quick response to fashion trends. Lean inventory levels help avoid costly discount promotions. The Spanish company is selling more without having to open a new store on every street corner.
Beyond Zara, brands such as Bershka, Stradivarius, and Oysho also offer growth opportunities. With a global market share of about 2%, there is plenty of room in the highly fragmented fashion industry. The start of the season is also encouraging. From August 1 to September 7, currency-adjusted revenue rose by 9%. The full-year outlook was confirmed despite higher transportation costs.
The analyst consensus expects revenue of approximately EUR 42.8 billion and earnings per share of EUR 2.18 for the fiscal year ending in January 2027. In the following two years, earnings per share are expected to rise to EUR 2.38 and 2.58, respectively. At current price levels, this corresponds to P/E ratios of approximately 25, 23, and 21. That is not cheap, especially since earnings growth is expected to be around 8 to 9% annually. However, the expected dividend yield will rise from about 3.5% to 4.1% in the fiscal year after next.
The majority of analysts are more optimistic about the stock: 24 “Buy” recommendations are offset by 6 “Hold” recommendations and 1 “Sell” recommendation. The average price target of EUR 60.57 offers about 11% upside potential. Inditex remains a quality stock with a premium. For this to pay off, the Spanish company must keep translating strong demand into rising profits and show that fewer retail locations and more business go hand in hand.
Standard Uranium offers the most pronounced discovery speculation among this trio, but requires a correspondingly high risk tolerance from investors. Volkswagen is focusing on a far-reaching restructuring, but investors will need a great deal of patience, particularly with regard to the successful implementation of the cost-cutting plans. Inditex impresses with a strong balance sheet and robust demand. However, the stock is no longer a bargain, and its upside potential is also limited.
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