Volkswagen: A tough battle
The long-established automotive industry is battling partly for market share, and partly for survival and at the epicentre of this storm, the Volkswagen Group is trying to tackle these historic challenges. The Wolfsburg-based automotive group slipped deep into the red in the third quarter and recorded a significant loss of EUR 5.82 billion. However, this dramatic slump was also triggered by substantial one-off effects amounting to EUR 7.8 billion, led by a multibillion-euro Porsche write-down of EUR 6.4 billion and the persistently challenging market environment in China. Investors are watching this development with concern, while the preference share struggles for stability at a price just below EUR 70.
Operationally, the picture is mixed: despite the crisis, the group, with a market capitalisation of just over EUR 38 billion, shows considerable operational substance. In its day-to-day business, VW is feeling the effects of fierce global competition and declining delivery numbers, while pioneering projects such as automated vehicle transport at the port of Emden are being trialled. With a low P/E ratio of just under 6, the share is valued extremely cheaply on fundamentals alone. Nevertheless, persistent margin pressure on electric vehicles and new or ongoing legal proceedings in the diesel scandal are weighing heavily on sentiment.
For long-term investors, the share could offer an attractive risk-reward ratio despite all the adversity, supported above all by solid shareholder remuneration. If a dividend is introduced in the future, the resulting dividend yield could be an impressive 6% or more.
Renowned research houses such as Deutsche Bank and JPMorgan see upside potential despite reduced price targets and are maintaining their assessments. Those who can disregard the undeniable restructuring risks and the tough cost-cutting programme will find a value stock here, priced on fundamentals with a substantial underlying base.
Xiaomi: From smartphone maker to electric vehicle powerhouse
As outlined above, the automotive market is transforming, as is the technology sector. Xiaomi is driving this change forward with breathtaking momentum. In October, the Chinese smartphone manufacturer achieved an impressive result, delivering more than 50,000 electric vehicles in a single month. This performance shows that the leap from consumer electronics group to serious carmaker is no longer just wishful thinking but is being translated into tangible results. Investors have rewarded this operational strength, with the shares recently making noticeable gains and trading at EUR 3.14.
Behind these records is a consistent expansion strategy that includes China and is likely to intimidate competitors. In the first 10 months of the year, the company has already delivered around 336,490 vehicles and is making strong progress toward its annual target. To secure its supply chain and battery supply, Xiaomi is investing around USD 253 million through a subsidiary for a strategic stake of 5.34% in battery manufacturer Sunwoda EVB. This vertical integration is complemented by targeted share buybacks, which underscore management’s confidence in its own future viability.
Xiaomi’s investment thesis rests on two strong pillars: its established, high-margin core smartphone business and its rapidly growing electric vehicle division, which is fuelling fresh expectations. Analysts praise its strong innovative capabilities and skilful diversification, which sets the company apart from pure automakers.
Despite intense competitive pressure in its home market, Xiaomi offers an exciting blend of tech growth and industrial scaling. Investors looking to back a genuine technological challenger of global stature may find a dynamic growth stock for their portfolio here.
Strategic Resources: Key raw materials for the future of green steel
Away from VW and Xiaomi, a potentially interesting chart development can be observed in a smaller resources stock.
Strategic Resources shares are currently trading at CAD 0.18 and are attempting to establish a solid bottom following a sharp sell-off to CAD 0.16. That could be a major opportunity if this succeeds.
In the latest company announcement dated October 27, 2026, management announced the next ordinary annual general meeting for December 16, 2026, in Montreal and reported the resignation of board member Michael Moore. Such personnel and organisational changes often signal operational transitions into new growth phases.
The company’s real foundation rests on critical minerals such as vanadium, titanium and high-purity iron, which are essential for the decarbonisation of the global steel industry. The flagship project is the BlackRock venture in Quebec, which comprises a fully permitted mine life of 39 years and a highly efficient pelletising plant at the deep-water Port of Saguenay. With abundant, inexpensive hydropower and pipeline natural gas on attractive terms, the company plans to benefit from cost advantages. This is complemented by a 10-year partnership with Javelin Global Commodities, which provides for an indicative term sheet for a credit facility of up to USD 150 million, subject to due diligence.
From a technical chart perspective, the stock, as already indicated at the outset, stands at an exciting crossroads where bulls and bears are engaged in an intense battle. To then break sustainably upwards through the existing downtrend once a bottom has formed, the share must first overcome the CAD 0.25 level, or better still CAD 0.26. If this jump succeeds, the CAD 0.30 price level comes within reach, while only a firm closing price above CAD 0.31 clears the way for a rally towards CAD 0.40. The preceding sell-off was partly absorbed by investor buying on high volume, which should further strengthen the bottoming process.
The investment thesis is also supported, among other things, by the growing structural shortage of high-quality direct reduction pellets for low-emission electric arc furnaces. Strategic Resources thus combines its top-tier jurisdictions in Canada and Finland with solid government support and a clear focus on the critical supply chains of the future.
The company presents itself as a small hidden gem for investors who have patience and wish to invest specifically in the raw material base of the energy transition. Nevertheless, the company is still at an early stage and should therefore be regarded as speculative.
Conclusion
Volkswagen is grappling with tough restructuring and burdens running into the billions, but offers substantial underlying asset value and an attractive dividend yield for patient investors. Xiaomi, meanwhile, impresses as a dynamic technology and electric vehicle group with outstanding delivery records and strong operational expansion. Strategic Resources is positioning itself as a resource developer that, with the BlackRock project and following a successful bottoming process, could offer opportunities for share price gains.
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