02. July 2020 | 07:56 CET
Aston Martin, SolGold, TUI - where to put the money?
In recent months, central banks and politicians around the world have taken hand in hand actions to preserve the economy and social peace, despite restrictions to curb the spread of the Corona Pandemic. The money supply has been increased and travel opportunities have been restricted. The planned holidays were cancelled and jobs were moved to the home. Luxury was almost impossible to think of and nothing remained as it once was. What options do investors now have to deal with this situation?
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ISIN: GB00B0WD0R35 , DE000TUAG000 , GB00BFXZC448
Majestic luxury cars
Aston Martin Lagonda is a British luxury car group with two brands and can look back on more than 100 years of experience. During the Corona Crisis, the British company had to increase its equity capital by issuing new ordinary shares in order to use the additional funds to compensate for the slump in sales. The Canadian billionaire Lawrence Stroll is one of Aston Martin's major shareholders.
The shares of the manufacturer of the legendary James Bond car lost significant value during the Corona period. Aston Martin now wants to survive the crisis through cost-cutting and restructuring. The management has high hopes for the introduction of a new off-road vehicle called "DBX". However, industry experts criticise that the company is jumping on the trend much too late. Porsche, Bentley and other competitors have been profiting from the lucrative SUVs for quite some time.
A promising strategy
SolGold is a successful exploration company focused on the discovery and definition of very large copper and gold deposits. The company has a first-mover advantage in Ecuador, in a very promising but little explored section of the Andean Copper Belt, which hosts several large copper and gold projects. The deposits probably host half of the world's copper resources.
From an investor's perspective, for projects of the magnitude of SolGold, it is important to remember that the right team with sufficient experience is particularly important to be successful in implementing a strategy. With copper and gold, the company focuses on commodities that can serve a booming market. The electrification of modern society requires huge amounts of copper and as the money supply increases, more and more people are fleeing with their wealth into the oldest currency in the world. With gold production expected to reach its historic peak in 2020, these are good conditions for SolGold and its shareholders.
A reliable travel partner even in bad times
The TUI Group is one of the world leaders in the tourism industry. As a responsible company, TUI is not only affected by global travel restrictions during the Corona Pandemic, but has also brought back stranded tourists from all parts of the world or looked after them. A nightmare from a business perspective. Not only did the revenues collapse, but money had to be spent to cope with the situation.
No company can survive permanently without turnover and with considerable costs. For this reason, TUI, which got into the situation through no fault of its own, has also received financial support from the German government. In the EU, more and more travel is now becoming possible and also on a national level, the travel business is booming due to a lack of alternatives. However, before TUI can return to its former strength, the worldwide travel restrictions must fall.