A Shift in the Portfolio: Why Lahontan Gold Could Outperform Heavyweights Xiaomi and TKMS

Xiaomi: Ambitious Product Offensive

The Chinese technology conglomerate Xiaomi is taking an extremely aggressive operational stance, but this is met with visible skepticism on the stock market. With the unveiling of the new Xiaomi 18 Fold smartphone, priced at the equivalent of around EUR 1,500, the company is launching a direct assault on the high-margin premium segment. "Under the hood" is the in-house-developed 3-nanometer Xring O3 processor, which, in combination with memory chips from the Chinese manufacturer CXMT, is intended to demonstrate technological independence. At the same time, Xiaomi continues to advance its ambitious efforts in the automotive sector. Although July's electric vehicle deliveries of 31,267 units fell short of last December's record of over 50,000 units, the automotive division still exceeded the 30,000-unit mark for the fifth consecutive month in August. To prepare for its planned market entry in Germany in 2027, letters of intent and agreements were already signed with eight German automotive retail groups at the IFA in Berlin. This progress is supported by the new Dragonscale battery technology, with a 76-kilowatt-hour capacity in the Skynomad model, for which Xiaomi even offers a lifetime warranty under certain conditions.

Financially, the "interim results" look quite solid at first glance. Revenue rose to CNY 108.92 billion in the last quarter, compared to CNY 99.14 billion in the previous quarter. Net income reached CNY 9.46 billion. However, the enormous research and development expenses, totaling CNY 9.23 billion, are taking a massive toll. These investments are consuming a large share of operating income and weighing on profitability. This is also reflected in the share price. At about EUR 2.97, the stock is currently trading more than 50% below its 52-week high of about EUR 6.50 in September last year. The market is concerned about whether Xiaomi can sustainably manage the dual burden of the global race in high-end smartphones and the massive start-up costs of its automotive division without sacrificing margins. From a technical analysis perspective, only a break above the EUR 3.80 mark would be a true sign of a sustainable trend reversal.

TKMS: Back Down After All-Time High

While Xiaomi grapples with the high capital costs of its dual strategy in vehicles and technology, a similar question of short-term valuation is emerging for the German naval defence specialist. TKMS, the shipbuilding group based in Kiel that was spun off from thyssenkrupp, is now in a correction phase after a rally to a new all-time high.

In mid-August 2026, the MDAX stock climbed to over EUR 108. Since reaching that new high, however, the price has fallen about 25% and now stands around EUR 84.70. During this pullback, the key support zone between EUR 88 and EUR 90 was broken to the downside. This zone now acts as resistance for any potential recovery attempts. From a technical analysis perspective, an indicator such as the RSI, at 48 points, sends a relatively neutral signal, though one that allows for movement in either direction. However, downward pressure has eased somewhat over the past few trading days, which could indicate the start of a bottoming process. This, however, might not occur until the price reaches the former support zone around EUR 70–72. This is also where the low of the previous correction wave lies, at around EUR 70. As long as this level holds, the overarching bullish scenario of an upward trend remains intact. A slide below this level, on the other hand, would trigger further losses toward EUR 60–65. Despite the recent pullback, analysts such as those at Bernstein view the long-term outlook positively and set a price target of EUR 125. One might consider cautious, staggered purchases at EUR 70–75, with an appropriate stop-loss order.

Lahontan Gold: On the Verge of a Technical Breakout?

When momentum in the tech and defence sectors temporarily wanes, sector rotations often occur. This brings commodity stocks back into focus. Among them, Lahontan Gold stands out, as the company looks attractive from both a fundamental and technical perspective.

Lahontan is focused on developing its flagship Santa Fe gold project within the well-known Walker Lane Trend in the US state of Nevada. The current preliminary economic assessment (PEA) confirms the project's positive economic viability.

The plan is to operate a cost-effective open-pit mine with heap leaching, which promises fairly high profitability thanks to low capital expenditures and attractive production rates.

For many commodity stocks, these key figures and outlooks typically form the fundamental foundation on which the stock can then take off from a technical perspective. Recently, the stock has broken out of its prolonged consolidation phase to the upside and established a small but steady upward trend. The share price is currently trading at around CAD 0.395, placing it right in the middle of an important resistance zone. If the stock breaks above CAD 0.43 soon, upward pressure would be released for now, and the resistance would be cleared. Based on the chart pattern, the next interim targets would then be between CAD 0.50 and CAD 0.55. In the longer term, there is room for growth up to the CAD 0.75 range. This price target is derived mathematically and from a chart perspective, based on a projection of the initial wave movement that once took the stock from CAD 0.12 to CAD 0.50. The setup for further gains could hardly be better at present.

Xiaomi impresses with its enormous innovative strength in smartphones and electric vehicles, but suffers from massive development costs and a currently weak chart pattern. TKMS remains a top-tier defence stock with strong long-term prospects, but it must first successfully complete its ongoing correction in the EUR 70 range. Lahontan Gold is currently one of the most exciting stocks. With the initial valuation of its Nevada project, the company demonstrates strong fundamentals and, following its recent breakout, is poised for a potential breakout and thus a potential "Buy" signal.