December 20th, 2021 | 12:39 CET
Porsche, Diamcor Mining, Aston Martin, Gucci - Who wants to do without luxury?
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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.
Aston Martin - The major shareholder jumps in again
One of the top luxury stocks in luxurious sports cars is the British cult brand, Aston Martin. The owners of the well-known car brand belong to the people with rather significant resources and, above all, good taste. In the cult movie series "James Bond 007", the products of Aston Martin were most recently staged by Daniel Craig.
Between 2015 and 2020, the noble sports car manufacturer had to go through a tough restructuring. In the spring of 2020, Aston Martin was saved from bankruptcy by a financial injection from an investment consortium led by Canadian billionaire Lawrence Stroll. Daimler-Benz later took a further 20% stake. Stroll brought Tobias Moers, the former head of the Mercedes tuning brand AMG, to the British Company as CEO.
Aston Martin more than doubled its sales in the third quarter of 2021, selling a total of 1,350 vehicles compared with 660 in the previous year. This is primarily due to the new DBX SUV model, which the British Company says explicitly targets affluent women and families. Nevertheless, Aston Martin did not make a profit. On the contrary, the pre-tax loss was GBP 98 million on sales of just GBP 238 million, partly due to higher financing costs.
Lawrence Stroll bought 400,000 shares in December, investing a further GBP 5 million, and he now holds around 21.6% of the Company. Aston Martin's shares reached over EUR 26 in the middle of the year but fell to EUR 13 by December. Last week, there was a strong countermovement to EUR 15.2 with the entry of Stroll. Meanwhile, the Company confirmed its annual targets. The recently suspected need for consolidation has been impressively confirmed, and the current level is now attractive.
Diamcor Mining - Diamonds are a girl's best friend
Not only Marilyn Monroe was crazy about luxury in the form of diamonds. In recent years, the rare gems have gained a firm place in the physical asset allocation of international asset managers. Those looking for physical investments on the stock market can invest in diamonds as well as sports cars. However, there are very few listed diamond players. One small representative is Canada's Diamcor Mining. The Company is the proud owner of the Krone Endora project in the middle of a diamond district in South Africa. Right next door, one of the world leaders in the diamond business, De Beers Group of the Netherlands, is mining.
In mid-November 2021, Diamcor raised its announced delivery of 2,750 carats another notch, putting a total of 2,925.66 carats up for sale. That brings the total amount of rough diamonds delivered and sold in the current quarter to 5,442.57 carats, a 25% increase from the previous quarter. Corresponding sales increased to USD 1.075 million. Additional rough diamonds that have been mined but not yet shipped will be held as inventory and shipped in the coming quarter.
The Company is very pleased with the continued increase in processing volumes from Phase 1 production. They are confident of increasing historical processing volumes by 100%. In addition, the Company continues to advance its efforts in planning and developing a major second phase of upgrades to its processing facilities, which are on schedule for completion in the first half of 2022.
Diamcor's stock is currently trading between CAD 0.32 and CAD 0.35. Cash flow is sufficient for the planned expansion steps. With the mine expansions, the volume produced is steadily increasing, advancing the Company's value well. Those who want to invest in the luxury sector are well diversified with a diamond prospector.
Porsche SE - The IPO insider tip for the coming year
Porsche Automobil Holding SE (Porsche SE for short), listed on the DAX since September, is a holding company with investments in the mobility and industrial technology sectors. 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.
Renewed speculation about an IPO of carmaker Porsche and changes in VW's shareholder structure have strongly driven the shares of VW's major shareholder Porsche Holding in recent weeks. According to "Handelsblatt," VW's owner families Porsche and Piëch, are also looking into reducing their VW stake in the process. The families hold 53% of the Wolfsburg-based group through Porsche Holding. VW, in turn, is the parent company of Stuttgart-based sports car maker Porsche.
According to speculation, the family owners could use the proceeds from a partial sale of their VW stake to finance a majority stake in Porsche. It is conceivable that they could also relinquish their majority of voting rights in the process but still remain VW's largest shareholder ahead of the state of Lower Saxony, which has held a 20% stake in VW for decades. That would allow the families to raise up to EUR 15 billion without giving up control of the VW Group. A later IPO of Porsche, the sports car pearl, would bring in further billions for the family owners and make a direct investment in the luxury car manufacturer possible. From this point of view, Porsche SE preferred shares with a market capitalization of EUR 26.4 billion are certainly undervalued. But speculation is speculation. Interesting!
Luxury goods manufacturers have always had a high appeal on the stock market. They were also suitable, for example, to achieve portfolio diversification compared to other sectors. However, the China Evergrande issue could cause an international capital shortage, which in turn would weigh on luxury stocks in particular. Diamcor is a small luxury player with positive cash flows and a low valuation.
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