European Energy Or European Defence? Part #2
Does Rheinmetall have a future? Thoughts on last night's elections and the broader EU setup.
In Part #1 of this series I explained why I like Vermilion Energy’s current valuation and future plans — in Europe and Internationally. In addition, I explained why the market is penalising VET, resulting in such a low valuation.
Today we will look into Rheinmetall AG, a German defence equipment and vehicle manufacturer currently riding high on the unfolding military conflicts and the war rhetoric ramping up in Europe.
The JD Vance speech at the Munich Security Conference was a catalyst — in that the US is basically pulling BACK forces from Europe and pulling back from Ukraine.
The Europeans don’t seem to be on the same boat with the Americans, giving rise to a massive divergence in direction and interests.
I expanded my views on the event and its broader significance in this piece.
Now, let’s jump right to Rheinmetall and analyse the current setup and valuation.
Now that the German Election results are out, we (mostly) know what the political environment will look like for the next 4 years.
Question is: Will that be a positive or a negative for Rheinmetall’s future?