January 17th, 2022 | 12:14 CET
LVMH, Diamcor, Daimler: Luxury is more than champagne, Tesla or S-Class
Table of contents:
LVMH: Here it is getting tighter and tighter
If we were to conduct a statistical survey of what luxury is for people, the majority of responses would probably be congruent with the range of products offered by LVMH. In addition to bubbly and spirits, the French group also offers expensive accessories and, and, and. The brand portfolio alone is impressive. Did you know that in addition to Louis Vuitton, LVMH also owns Dior and even Birkenstock? The group has come through the crisis well and increasingly relies on the Internet for sales. The third quarter of the fiscal year went well, and the previous half-year figures were also significantly better than 2020 and even 2019.
As a result of this positive development, the share price has also risen steadily in recent months. In the meantime, the share is trading at a level at which investors should exercise caution. Although strong brands in the luxury segment are trumps and LVMH has always had a good hand with acquisitions in the past, trees do not grow to the sky. Cautious investors better wait and see with LVMH.
Diamcor: What can the multiplier of 2021 do?
The share of diamond producer Diamcor has come back a little further. The Company works with Tiffany Canada, among others, and supplies the jewelry industry with the coveted stones. At the end of December, the Company announced that it had mined around 5,442.57 carats from the Krone-Endora mine in the last quarter. Compared to the previous quarter, this is an increase of 25%. "We are pleased with the increase in total rough diamonds offered and sold in the current quarter. We continue to focus on optimizing processing volumes and recoveries based on the Phase 1 upgrades for the remainder of December and the upcoming quarter," said Dean Taylor, chief executive of the Company at the time. It is quite possible that Diamcor will soon report a further increase in production.
The stock has had a spectacular few months, rising from around EUR 0.06 to EUR 0.35 in early summer 2021, before going into consolidation. The share is currently trading around EUR 0.20, an area that includes several historical support zones, for example, from the fall. If the share succeeds in forming a bottom at this level, the value could gain momentum for a renewed upward movement. However, the continuation of operational progress in South Africa is crucial for this.
Daimler: A good mix of the tried and tested, and innovation
Although the attitude of Germans toward automobiles has changed, a proper vehicle is still considered a status symbol and an expression of luxury. For those who find Italian sports cars too extravagant and British luxury brands too aristocratic, Daimler offers the perfect blend of luxury and down-to-earthness. Even though it is easy to spend several hundred thousand euros on a vehicle at Daimler, the Company from Sindelfingen never overdoes it. Daimler drivers are far from flashy and ostentatious; instead, they like to show what they've got subtly. The Daimler Group has adopted the same approach.
The Swabians are now not only capable of producing noble cars with combustion engines but also electric cars and autonomous driving cars. The flagship S-Class features many items that are likely to be standard in vehicles in the not-too-distant future. This is how Daimler has made a reputation as a technology leader. The share recently consolidated a little but is currently scratching the high for the year despite the uncertain market environment. Investors should keep Daimler on their radar in light of this relative strength.
Investors who want to bet on luxury have various options. These are also urgently needed - after all, classic luxury stocks like LVMH are already expensive. The small diamond miner Diamcor has fallen back significantly in recent weeks, although it is making progress operationally. Investors should keep the stock, like Daimler, on their radar.
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