September 18th, 2020 | 09:22 CEST
Lufthansa, Silver Viper, TUI - does diversification and patience pay off?
Table of contents:
Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.
Innocence in the chaos
Due to the spread of the Corona Pandemic and no fault of their own the share prices of Lufthansa and TUI fell in the first quarter of 2020. Thriving companies with employees around the globe had to stop more or less their entire operations at short notice by government order. In the summer months that followed, there was still hope that a breath of the old habits could return in the autumn months or at the turn of the year at the latest. But at least for now, this does not seem possible.
State rescues those affected
Since the latest travel restrictions brought in by the Federal Government for Amsterdam, Vienna and the whole of Spain, everyone is conscious that policy makers will not permit the endangerment of lives. With the fear of an uncontrollable rise in the pandemic the authorities have extended their restrictions once again resulting in the airplanes of Lufthansa remaining unoccupied as well as the high vacancy rate at TUI hotels.
In the interest of the common good, the state is stepping in with aid packages and rescue packages for the affected industries. In a spirit of solidarity tax money is allocated for emergency situations like these to help bridge the financial requirements of those affected.
Precious metals as a safe haven
Investors who want to position themselves in this market environment in order to make short-term profits are certainly better off in industries other than tourism. In addition to the e-commerce and biotech sectors, companies in the precious metals sector in particular have been able to benefit from the increase in money supply by various central banks around the globe. Wealthy people have already been fleeing from fiat currencies to gold and silver for months. The price of gold reached an interim all-time high of over USD 2,075.00 per troy ounce. The price of a troy ounce of silver has risen since mid-year from USD 18.00 per troy ounce to almost USD 30.00.
Exploration potential in Mexico
Besides the producers in the mining industry, exploration companies can especially benefit from the increased interest in commodities. For example, Silver Viper Minerals' share price has risen from below CAD 0.32 at its peak to CAD 0.85 since April 2020. The company is on the lookout for gold and silver in Mexico.
Management has been successful in previous drilling programs in the areas and recently raised a total of CAD 5.1 million from investors at a share price of CAD 0.36. The new capital will allow Silver Viper to continue to develop the La Virginia Project. The market value of the company at its current share price of CAD 0.69 CAD is approximately CAD 43.5 million.
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.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. 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.