Close menu




December 9th, 2021 | 05:01 CET

LVMH, Diamcor Mining, Porsche: Luxury as a safe bank

  • Diamonds
Photo credits: pixabay.com

Christmas is the season for gift-giving. Especially towards the end of the year, we like to give our loved ones, business partners, and friends gifts. The last quarter is traditionally strong for shares from the consumer goods sector. Jewelry manufacturers also benefit from the end of the year. Since consumers like to give gifts regardless of the economy, and luxury, in particular, can be a bit of a cyclical business, we present stocks from this sector.

time to read: 3 minutes | Author: Nico Popp
ISIN: LVMH EO 0_3 | FR0000121014 , Diamcor Mining Inc. | CA2525312070 , PORSCHE AUTOM.HLDG VZO | DE000PAH0038

Table of contents:


    LVMH: Everything is in here

    A basic investment when it comes to luxury is LVMH. The Paris-based conglomerate stands for 75 strong brands, including Moet & Chandon, Veuve Cliquot, Louis Vuitton, Loewe, Dior, Tiffany, Bulgari and many more. The best thing about LVMH's concept is that the group always has a brand in its portfolio that is doing well at any given time. During the early phase of the pandemic, LVMH also lost ground, as many luxury goods are still brought back from travel, but the business has since recovered.

    Business with Asian customers has long played a decisive role for companies like LVMH. More and more wealthy people live in Asia, and the middle class can treat itself to something - more than ever before. Growth figures from the International Monetary Fund (IMF) show that the emerging markets of Asia are one of the few regions in the world to have come through 2020 smoothly and are already growing strongly again in 2021. Stocks like LVMH remain an attractive underlying investment in the luxury sector.

    Diamcor Mining: Diamonds make friends

    An exciting niche within the luxury segment is diamonds. Diamcor Mining started successfully into 2021 and put an impressive return on the floor. Recently, however, the share price has come back a bit. Diamcor mines rough diamonds in South Africa and supplies the global market. Another customer is Tiffany & Co. Canada, a company belonging to the LVMH Group. The Krone-Endora project is considered low-cost due to its geological conditions. Next door is the well-known Venetia mine, considered the most productive mine in South Africa.

    Diamcor consistently holds sales auctions, most recently achieving an averaged sales price of CAD 226.64 per carat. Thanks to established customer relationships, such as Koin International, which has sales offices in Dubai, Diamcor can always bring its products to customers at current market prices. Particularly against rising inflation, tangible assets are likely to become more attractive. As concerns about the pandemic have repeatedly led to production cutbacks in recent quarters, the stock has recently fallen back. However, Diamcor itself believes it is well-positioned to meet these challenges due to cost reductions. The share is dynamic and speculative, but the business is promising.

    When will Porsche put the pedal to the metal?

    Porsche's business is also promising. The sports car manufacturer is one of the most respected global brands that Germany has produced. That is probably one of the reasons why there are currently media reports that Volkswagen's majority shareholder, the Piëch family, wants to sell shares in the Wolfsburg company to acquire shares in Porsche in return. The two companies have been closely linked for years. The Piëch family intends to remain the majority shareholder there even after the sale of VW shares. VW wants to invest the funds from the share sale in future technology and digitization. Porsche is also likely to benefit indirectly from this. So, on the one hand, the Piëch family should expand its influence at Porsche and at the same time release indirect investments in Porsche.

    Porsche is not an icon with an undoubted reputation for nothing. The brand will continue to be in demand from customers all over the world for many years to come. Although the share reacted positively to the latest news, a slight loss has been recorded on a three-month horizon. The stock will move into the fast lane above the EUR 93.50 mark, and Porsche will likely put the pedal to the metal as soon as the price reaches triple digits.


    Luxury always runs. This truism also applies to LVMH, Porsche and Diamcor. While the first two companies have long been top dogs, Diamcor Mining combines a commitment to the luxury segment with growth and dynamism. For certain groups of investors, this can be just the right mix.


    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 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.

    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

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Nico Popp on January 17th, 2022 | 12:14 CET

    LVMH, Diamcor, Daimler: Luxury is more than champagne, Tesla or S-Class

    • Diamonds

    What constitutes luxury is in the eye of the beholder. For some people, even a terraced house in a major German city is luxury, others focus on leisure, and for others still, it has to be jewelry or diamonds. Even though there are different ideas of luxury, there are companies that perfectly reflect the desire for something special - and are thus suitable as an investment. We present three stocks.

    Read

    Commented by Fabian Lorenz on January 6th, 2022 | 11:26 CET

    The beginning of the end at BioNTech? Positive start for JinkoSolar and Diamcor

    • Diamonds

    Is Omicron the beginning of the end of the Corona pandemic? Not only stock market players are asking themselves this question. Because as it seems, the virus variant is more contagious but seemingly leads to less severe sickness. As a result, the shares of vaccine manufacturers such as BioNTech, Moderna and Valneva have recently suffered. However, there are positive things to report, especially for BioNTech. While the Mainz-based Company is optimizing its vaccine for the Omicron variant, there is also positive news from the USA. Not only the COVID-19 vaccine is in demand worldwide, but also diamonds. Most recently, Israel reported a significant increase in demand. Tiffany & Co. partner Diamcor is benefiting from this demand. JinkoSolar's share price is heading north again in the first few days of trading after the heavy losses before Christmas. The IPO of the subsidiary is taking shape.

    Read

    Commented by Stefan Feulner on January 3rd, 2022 | 08:50 CET

    BYD, Diamcor, LVMH - Impressive growth

    • Diamonds

    Despite the Corona pandemic, travel bans and closed stores due to several lockdowns, demand for luxury goods continues unabated. Now add rising inflation to the mix. Tangible assets such as shares, precious metals and jewelry are the best protection against currency devaluation. The purchase of diamonds is growing in popularity. The choice of listed companies on the stock exchange is small.

    Read