September 21st, 2021 | 13:57 CEST
Porsche, Diamcor Mining, Aston Martin - Can it be a little more?
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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.
Porsche SE - Automobile extravagance now also in the DAX
It was about time; as of yesterday, it is implemented: Porsche is in the DAX. A small note beforehand: Porsche Automobil Holding SE is only a fraction of the sports car manufacturer from Zuffenhausen. The holding Company itself is more a collection of attractive industrial investments, primarily in VW in the form of ordinary shares. Porsche had accumulated these shares in October 2008 in a historic action via the purchase of options. The then CEO Wiedeking allegedly wanted to take over the majority in the Wolfburg company; the VW ordinary shares rose to over EUR 1000 in the short term due to false speculation. In the end, however, Porsche had to be supported by VW. The courts are still dealing with this incident today.
Porsche Automobil Holding SE (Porsche SE for short), now listed on the DAX, is a holding company with investments in mobility and industrial technology. Today, it sees itself primarily as an anchor shareholder and long-term investor in the Wolfsburg-based Volkswagen Group, in which it holds 53.3% of the ordinary shares. In the Stuttgart-based sports car manufacturer Dr. Ing. h.c. F. Porsche AG, Porsche SE is only indirectly involved via its investment in Volkswagen AG.
The latest figures read well across the board: in the first 6 months of the fiscal year 2021, a group profit after tax of EUR 2.46 billion (prior-year period: minus EUR 329 million) was achieved. However, the consolidated profit was significantly influenced by the investment in Volkswagen AG of EUR 2.51 billion (prior-year period: minus EUR 291 million). Due to a stock market value of EUR 25.5 billion, the Company has a starting weight of 1.38% in the DAX calculation, which means 25th place out of 40 in the ranking. After a high of EUR 102 in June, the Porsche share is currently consolidating. In order not to endanger the trend, the price should not fall below EUR 70.
Diamcor Mining Inc. - Diamonds bring stability to the portfolio
From a portfolio perspective, it makes perfect sense not to put all your eggs in one nest in volatile times. If you already have many commodity investments in your investment universe, you should consider adding diamonds if you are overweight in oil or battery metals. The largest diamond producer in the world is De Beers of the Netherlands, headquartered in London. The Company is a subsidiary of Anglo American plc and supplies about one-third of the world's production of rough diamonds.
There are very few listed diamond players on the stock exchange overall. A smaller representative, but no less attractive, is the Canadian Diamcor Mining. The Company owns the Krone Endora project in the middle of a diamond district in South Africa. Right next door, the aforementioned De Beers has been mining for decades at the Venetia mine, a flagship project of the Dutch. In July, Diamcor already sold about CAD 744,000 worth of diamonds. It is just the beginning, as mining is expected to be significantly expanded by the end of the year. Only 5% of the area under management has been explored in detail, so the exploration potential is still vast and promising.
In August, Diamcor Mining completed the first phase of planned upgrades at the Krone-Endora project ahead of schedule. This work includes sub-steps in analysis and processing and other improvements designed to reduce water and power consumption per tonne of rock. Production will thus be more efficient and cleaner.
Diamcor's shares reached CAD 0.36 in August after good interim results and have been consolidating slightly since then. However, with cash flow now in place, the Company can continue to do well. The story is well-rounded and still has a lot of potential, also from a risk diversification perspective. Therefore, get in before new exploration results make the rounds!
Aston Martin - Turnaround with the new SUV
Aston Martin owners are also among those with great resources and good taste. The British noble sports car manufacturer had to go through a tough restructuring between 2015 and 2020. Daimler-Benz rushed to the rescue and took a stake of around 20% in the stumbling Company at just the right moment.
Good sales of the new SUV helped to reduce the still persistent losses while sales increased significantly. The Company sold more than 1,500 of its new DBX vehicles launched last year. For the figures, this means a loss of just GBP 91 million after 6 months, compared with more than GBP 227 million a year earlier. Sales even increased by a staggering 240% to GBP 499 million.
Whether SUVs ultimately fit the Company's clientele or do not scare away one or two fans remains to be seen. SUVs have proven increasingly popular in recent years, and Aston Martin's entry into the market at least provides a turnaround for the struggling high-end manufacturer. All in all, it's been a solid six months for the luxury carmaker, but the group is probably still a long way from being able to set the cruise control. Aston Martin's share price again reached the EUR 26 mark in June, which means that the share price has gained 76% over the year. In our view, the stock still has room for consolidation at the current level.
Manufacturers of luxury goods are getting into trouble because of the difficulties of China Evergrande. The highly indebted real estate group crisis is leading to less demand from Asia, and the shares of European groups Porsche, LVMH and Richemont are falling sharply. Diamcor offers a good alternative in the sector; the Company is valued at only CAD 20 million with good results.
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