22. November 2021 | 12:50 CET
Amazon, Desert Gold, Deutsche Telekom: First movers are rewarded
Is it Christmas again? History is currently repeating itself: incidences are rising, Austria is going into lockdown, and German investors are gearing up for a form of contemplation that no one had expected after the vaccination successes in the summer. But life with a home office and delivery services also has advantages for passionate investors: There is plenty of time to take care of one's finances. Investors can profit since the market does not yet attach much importance to the dangers of inflation and the major central banks' ignorance of inflation. We present three stocks for long home office days.
time to read:
ISIN: AMAZON.COM INC. DL-_01 | US0231351067 , DESERT GOLD VENTURES | CA25039N4084 , DEUTSCHE TELEKOM ADR 1 | US2515661054
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
Amazon: Consumer battle ahead!
That many readers of ESG-Aktien.de will use the upcoming time to invest is obvious. But what are the rest doing? Right! Consuming! The time before Christmas is traditionally also characterized by consumption given discount campaigns and the search for gifts. In times of home offices and possible further restrictions in Germany, the only thing left for many is a quick click. Amazon is a tried and tested address in this respect: Good prices, fast delivery and accommodating service have made Jeff Bezos' former startup number 1 worldwide.
In the meantime, Amazon is also credibly committed to climate protection and runs campaigns to reduce resentment towards working conditions at the world's largest mail-order Company. So things are likely to move forward for Amazon in terms of ESG criteria as well. That is a factor not to be ignored for future funding rounds. But Amazon's reliance on outside capital is limited. The reason: At Amazon, the ruble rolls month after month. The cash flow is robust, making the stock a good choice in an inflationary environment. In addition, there is currently seasonality. At the beginning of the week, the share reached a new high. There is still more in it, but the trees do not grow to the sky, even with Amazon.
Desert Gold: Here, the timing is right
If Amazon is a strong sequoia tree, Desert Gold's stock is like a big seed that, despite good conditions, has yet to see a significant growth spurt. The Company holds a vast gold property within a well-known gold belt in Mali on the border with Senegal and has already explored it extensively. In addition to high grades, the Company has recently shone with new discoveries and has some neighbors with Barrick and Co. already in production. Only recently, a detailed report attested the stock an "exceptional potential for revaluation".
The author sees the reasons in the location of the SMSZ project, which, given producing mines in the immediate vicinity, allows the conclusion that SMSZ could also produce gold at the country's typical USD 800 per ounce. Because of the currently rising gold price and the fact that gold was more than twice as expensive even during extremely weak market phases, the shares of Desert Gold can be considered attractive. In addition, according to the ResearchAnalyst.com report, the Company plans to release a new resource estimate by the end of the year, which could initiate a revaluation. The report also brings up the stock as a possible takeover candidate. Since gold and shares in the sector have yet to benefit significantly in the wake of rising inflation, gold bulls can take advantage of the situation. History has shown that the precious metal usually erupts and picks up steam overnight. Smaller, market-sensitive stocks in particular then pick up significantly.
Deutsche Telekom: Will a new hype follow?
The Deutsche Telekom share is anything but narrow. The "pink giant" celebrated its stock market anniversary this week. Even though the "T-Share" is now a red rag for many private investors and will probably never again reach the record prices of the turn of the millennium, the share is considered a solid inflationary value. As with Amazon, Telekom's robust cash flows also play a role. At Telekom, these and pricing power may be a little more pronounced. While every purchase decision at Amazon has to be made anew, Deutsche Telekom has become a provider. Contracts usually run for two years, and renewals are handled on the phone after brief negotiations. However, Deutsche Telekom's share price is still a long way from inflationary hype - it has fallen by almost 12% in the last three months. If the share price breaks through the EUR 17 mark, it could enter positive territory. But there will be no more hype like 25 years ago.
Deutsche Telekom and Amazon shares are solid stocks when it comes to inflation protection. The US stock offers more growth, the former people's stock, more dividends. However, if you want to add dynamic stocks to your portfolio, you should also keep Desert Gold in mind. The inflationary situation has not yet kissed gold awake. Desert Gold offers good operating conditions, and first movers could be rewarded in the long term. However, the share is still speculative.