Close menu

September 27th, 2021 | 12:20 CEST

Diamcor Mining, TUI, Xiaomi - Consumer stocks are among the winners!

  • Diamonds
Photo credits:

To consume or to save? Everyone is faced with this fundamental decision. The individual rate depends on the level of income and the prospects regarding the labor market and economic growth. In the course of the Corona pandemic, private consumption declined significantly. With economic recovery and the removal of lock-downs, personal consumption is picking up again considerably. The companies mentioned above are benefiting from this.

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: Diamcor Mining Inc. | CA2525312070 , TUI AG NA O.N. | DE000TUAG000 , XIAOMI CORP. CL.B | KYG9830T1067

Table of contents:

    DIAMCOR MINING INC - Measures implemented for higher profitability

    Diamcor Mining is focused on identifying, acquiring and operating diamond projects that are in production in the near term and have the potential to generate continuous diamond production and cash flow. The Company follows a distinctly low-risk strategy by not taking exposure to exploration projects. Diamcor uses advanced technologies to process overburdened reserves and is interested in high-quality alluvial and eluvial projects that allow the recovery of documented diamondiferous gravels using simple, low-cost strip mining techniques. Geographic focus regions include Canada and South Africa.

    Of strategic importance is the long-term strategic alliance formed this summer with Tiffany & Co. Canada, a subsidiary of the world-famous New York-based Tiffany & Co. Under the terms of the agreement, Tiffany & Co. Canada has a right of first refusal on up to 100% of the future rough diamond production of the Krone-Endora at Venetia project at current prices. Equally significant, the agreement provides for substantial financing to advance the project as quickly as possible. However, diamonds are not only of interest to the jewelry industry, but because of their unique properties, they are also sought after in laser technology, in the manufacture of semiconductors, and for a variety of electronic components.

    The Canadians are currently focused on developing and advancing the Krone-Endora at Venetia project in South Africa. The project covers approximately 5,900 hectares and is adjacent to De Beers' flagship Venetia diamond mine. Diamcor has a long history of operations and production in South Africa and has extensive experience supplying rough diamonds to the world market.

    Recently, the Company reported the completed implementation of several measures at the Krone Endora at Venetia project. The goal is to increase the project's processing volume by up to 100%. Specifically, this will be ensured by improving and expanding the diamond concentration system and installing a new electronic X-ray unit for diamond recovery. In addition, cost-cutting measures that reduce water and electricity consumption per ton will be implemented. With the final commissioning, the first results on the effectiveness of the bundle of measures will be available in the coming weeks. Good news will undoubtedly provide positive impetus for the Company's share certificates, currently valued at CAD 24 million.

    TUI - Tailwind from relaxation

    Germans are traveling significantly more again. This is evident from the recently published data of the airport association ADV. According to the data, the number of passengers using a German airport as their point of departure or destination during the summer vacations doubled year-on-year to 28.6 million. However, this figure is still far from the pre-crisis Corona level. The ongoing dismantling of international entry restrictions, particularly in the USA and the UK, is expected to provide further tailwind for the industry.

    It is also urgently necessary, as TUI's 9M figures published in mid-August show. Sales in the first nine months fell by 80%, yet appropriate measures enabled the Group loss to be kept almost at the previous year's level of around 2.4 billion. Due to a higher number of shares in 2021, the loss per share decreased to EUR -2.66 after EUR -3.98. Net debt amounted to EUR 6.34 billion at the reporting date. Looking at the Q3 figures in isolation, significant progress can be seen. Sales multiplied from around EUR 72 million to EUR 650 million due to base factors. The loss per share decreased significantly to EUR -0.85 after EUR -2.51 in the previous year. The Group recently took advantage of the depressed share price level to acquire 317,171 treasury shares for an employee participation program. The volume-weighted average price of all purchases made, excluding incidental acquisition costs, was around EUR 3.85.

    XIAOMI CORPORATION - Apple overtaken!

    Xiaomi has this summer displaced Apple as the world's second-largest cell phone manufacturer. Samsung remains the undisputed top dog. The Chinese were able to grab a 16.7% market share in Q2 2021 to take second place globally. The Group also grew strongly and much more dynamically than the competition in mainland China. The market share here increased from 10.3% to 16.8% in Q2.

    Xiaomi offers smartphones and a wide range of smart devices connected via an AI-IOT platform, which the Company claims is the world's largest. In addition, Xiaomi was included in the BrandZTM Top 100 Most Valuable Global Brands for the third consecutive year in June 2021, with the Company now ranked 70th. The Group is valued at USD 71 billion and has a moderate valuation with a 2022 P/E ratio of 19. Analysts are overwhelmingly convinced of the stock's potential, and on average, formulate an upside potential of just under 50% over the next 12 months.

    Private consumption is picking up again significantly, and the trend should continue on a sustained basis. The three featured stocks benefit from rising consumption in the fields of travel (TUI), technology (Xiaomi) and jewelry/diamonds (Diamcor Mining). TUI should be treated with caution due to high debt and red numbers. Xiaomi is interesting for technology-savvy investors. We find Diamcor very exciting with its low-risk strategy and moderate company valuation.

    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") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

    Related comments:

    Commented by Stefan Feulner on February 25th, 2022 | 07:58 CET

    Rheinmetall, Diamcor, Hensoldt - The scenario escalates

    • Diamonds
    • armaments

    All the diplomatic attempts to resolve the situation in Ukraine peacefully have failed. Russia is already in eastern Ukraine with its troops, and the police are reporting fighting throughout the country. In his televised speech launching the war against Ukraine, Russia's President Putin threatens the West with a massive counterstrike. The markets fall into deep red territory. By contrast, the defense industry is benefiting alongside precious metals and oil. Orders should thus continue to rise over the next few years. After the expected sanctions, energy prices are also likely to explode, so there is no end in sight to the inflationary spiral.


    Commented by Juliane Zielonka on February 17th, 2022 | 12:10 CET

    Peloton, Diamcor, Bayer - Trust, tangibles and expertise

    • Diamonds

    Peloton gets in shape with streamlining just like its existing customers. 90% of early adopters remain loyal to the Company. Rough diamonds achieve new record prices, Diamcor profits, and so do its investors. Bayer comes up trumps in the agricultural business with innovative solutions for corn cultivation. In the upcoming market phase, investors want to be prepared. Investing in price-setters that take advantage of strong inflation makes sense. We take a look at three investment opportunities.


    Commented by André Will-Laudien on February 1st, 2022 | 13:47 CET

    Lufthansa, TUI, Diamcor Mining, Aston Martin - Grab strong gains now!

    • Diamonds

    Germany is home to more than 2 million people with assets of more than EUR 1 million - in 2010, this figure was still a good 600,000. The threshold for belonging to the top one per mille is rising steadily. Currently, liquid assets of around EUR 5.5 million are needed to belong to the wealthiest 1 per mille of Germans. Nevertheless, luxury is not only found among the rich because the desire for extravagance is a widespread character trait and less a question of money. We look at companies that rely on liquid clientele.