Close menu

July 4th, 2022 | 12:25 CEST

Attention, turnaround! Lufthansa, TUI, Desert Gold, Deutsche Bank: These stocks are taking off again!

  • Gold
  • Tourism
  • Investments
Photo credits:

From several perspectives, the ongoing crisis is a mammoth task for asset managers and private investors. First, after the long uptrend and the absolute boom valuation of growth stocks from 2015 to 2022, no one knows when a sufficiently high discount has been reached to re-enter. Some stocks, such as Plug Power, are very forward-looking and dependent on government contracts. Here there have already been sales valuations of a factor of 200. So is a P/S ratio of currently 12 after an almost 80% share price loss cheap or still hopelessly overpriced? We do not know because the ongoing war sets new market parameters daily. The major indices will therefore continue to search for a valuation basis in a very volatile manner. We pick out a few selected opportunities.

time to read: 5 minutes | Author: André Will-Laudien

Table of contents:

    Ryan Jackson, CEO, Newlox Gold Ventures Corp.
    "[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

    Full interview


    Gold below USD 1,800 - Desert Gold Ventures is on the move

    There was a bit of a shock on Friday! Gold briefly fell below USD 1,800 and marked a new six-month low of USD 1,784. Likewise, silver plunged below USD 20 for the first time since the summer of 2020. Contrary to what many investors had expected since the beginning of the war, the precious metals corrected partly erratically in a still strongly downward overall market.

    But now is the time to look at gold stocks that still have their gold reserves hidden in the ground. If the price of the mined ounce is already falling, projects for the future will also be valued lower, offering perfect entry scenarios for promising properties. The Canadian explorer Desert Gold Ventures (DAU) still has a short way to go in developing its African assets, but the milestones reached are promising.

    At the end of June, there were again new drill results from 91 drill holes at the top SMSZ property in Mali, West Africa. All reverse circulation (RC) drill holes intersected significant amounts of gold mineralization (0.41 to 1.91 g/t AU), with the top value of 1.91 grams per tonne of gold spanning as much as 32 meters. A detailed review of the metallurgy and mineability of the gold oxide resource, starting with the higher grade Barani East deposit, is underway. Once assay results are available and evaluated for the Mogoyafara South and Linnguekoto West zones, a follow-up program will be designed.

    CEO Jared Scharf commented: "Our recent drilling continued to return numerous wide intercepts of gold mineralization along a 1.6 kilometer zone, with up to five lenses of gold mineralization encountered within a 130 meter wide corridor. This recently defined gold system, which is not part of our current resource, demonstrates the tremendous gold occurrence in the region and the potential for resource expansion and additional discoveries at the SMSZ project."

    A total of 20,000 meters of drilling is expected to be completed in 2022. Based on the current results, the next resource estimate will likely be raised. The stock ended June at about CAD 0.10 and a total valuation of CAD 16 million, equivalent to just under EUR 12 million. The share is currently trading liquid again, and the positive newsflow should continue to support the price, even if the precious metals do not want to come up in price at the moment. Position yourself now!

    TUI and Lufthansa - This summer will be the acid test

    Away from precious metals, the situation in the tourism business is getting out of control. Overloaded airports, hours of additional waiting time, overbookings and cancellations, sometimes even shortly before departure, are driving holiday-makers into madness. The travel and aviation companies can hardly manage their regular business today without the personnel recently released in the pandemic. However, many families in Germany have not been able to take a vacation for the last two years and feel an urgent need to catch up.

    The travel offers on the Internet are luxuriant and plentiful, but providers are not currently able to get into a proper performance fulfillment mode. Also complicating matters is the dramatic understaffing of airports, pilot services and the availability of entire aircraft crews. It is disconcerting when clusters form in front of check-in desks, and the overhead announcer announces, "We cannot start boarding until the crew arrives!" - sometimes, they just don't arrive on time, and so the airport cancels the scheduled slot. What a mess!

    This is not good news for service providers TUI and Lufthansa, and the chaos on the Internet speaks volumes. Many investors reacted with a huff and sold the highly indebted companies for the time being, and the share prices went from one year's low to the next. At the end of June, TUI once again reached its 2020 Corona low of EUR 1.52, while the LHA share price of EUR 5.65 is only just above its low of EUR 5.27. TUI still announced late in the afternoon on Friday that it had repaid EUR 725 million in silent participation to the German Economic Stabilization Fund (WSF). Lufthansa had already repaid a billion euros in the first quarter. TUI reduced its KfW debt from EUR 2.4 billion to EUR 2.1 billion. The management had recently changed, but the stock market is still writing all-time lows on the blackboard. Nevertheless, the summer business seems to be going well, even though some compensation payments will likely be due. An entry is currently very speculative and needs strong nerves in this environment, but perhaps it will happen at the right time.

    Deutsche Bank - Fully under the wheels

    The Deutsche Bank (DBK) share has had a horror semester on the stock market. The value fell from EUR 14.64 in February to EUR 7.94 at the beginning of July. Such a halving of a DAX value only occurs in the case of operationally poor figures or persistent profit warnings, but neither is currently the case.

    The head of Germany's largest private bank has repeatedly pointed out the threat of recession in Europe. The bank is probably in the process of adjusting to this economic scenario. Impending bankruptcies and a slump in new business would be the result of an economic crisis, which Christian Sewing seems to be forecasting. In his opinion, inflation is the biggest poison for the economy and society and should be fought accordingly. "I would say that inflation worries me the most, and that is why I believe that the signal we have received from the central banks, whether from the Fed or now also from the ECB, is the right signal," the CEO told Frankfurter Allgemeine Sonntagszeitung. Sewing already said in December that he does not consider inflation a temporary phenomenon but a multi-stage development. The central banks are challenged to ensure this development does not get out of hand.

    Deutsche Bank has significantly reduced its presence and exposure in Russia since 2014 and has further reduced it in recent weeks. Gross loan exposure is now only EUR 1.4 billion, or just 1% of the total loan book. Why the share has a strongly negative development compared to the DAX is not derivable for us at the moment. Perhaps prices around EUR 8 are also attractive entry prices for risk-conscious investors. Nevertheless, set tight stops!

    The shocks on the stock market continue, but they also deliver buying opportunities again and again. While the markets were consistently highly-priced in 2021, some stocks currently offer a fair risk-reward profile again. Desert Gold delivers milestone above milestone and is favorably valued. TUI, Lufthansa and Deutsche Bank offer buying opportunities at least at multi-year lows in the chart.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Stefan Feulner on April 15th, 2024 | 06:45 CEST

    First Majestic Silver, Desert Gold, Albemarle - Escalation paves the way

    • Mining
    • Gold
    • Silver
    • chemicals
    • Lithium

    The events at the weekend, during which Iran carried out a massive airstrike on Israel for the first time, are likely to have escalated the already troubled geopolitics to a new level. It is not yet known whether Israel is planning a counter-attack. Precious metals gold and silver are once again likely to benefit from the uncertainties following the rather weak close to the week. The yellow precious metal could recapture the USD 2,400 per ounce mark, which could also boost the shares of producers and gold exploration companies.


    Commented by Fabian Lorenz on April 11th, 2024 | 07:00 CEST

    Out of defense, into gold!? Renk, Barrick Gold, Desert Gold

    • Mining
    • Gold
    • defense
    • armaments

    On Tuesday, German defense stocks were shaken briefly and sharply. In a flash crash, Renk, Rheinmetall and Hensoldt fell by more than 10%. This indicates that defense stocks have run hot. The future prospects for the companies are undeniably positive, but a consolidation is in order. Gold is an entirely different story. The price of the precious metal is at record levels, but the shares of gold producers are still a long way from their 2020 highs. This applies to the heavyweights like Barrick Gold and Endeavour Mining, but even more so to the explorers. One of the promising explorers is Desert Gold. The Company operates in an attractive region, is on the verge of becoming a Tier 1 mine producer, and is a takeover candidate. Barrick Gold is one of many companies that could make a move on Desert Gold.


    Commented by Stefan Feulner on April 9th, 2024 | 06:45 CEST

    Palantir, Globex Mining, Bayer - The trend is pointing upwards

    • Mining
    • Commodities
    • Gold
    • Silver
    • Pharma
    • Software

    After a successful first quarter of 2024, the DAX and Dow Jones took a well-deserved breather last week. In contrast, the precious metal markets for gold and silver continued their upward trend. Gold also reached new absolute highs of USD 2,354 per ounce. While gold producers such as Barrick Gold and Newmont remained in hibernation, they have been following the rising base price for several weeks now. There is currently also an opportunity for smaller commodity stocks to participate disproportionately in the upward trend.