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June 13th, 2024 | 07:00 CEST

Stocks on the verge of a breakout! Rheinmetall, TUI, Desert Gold

  • Mining
  • Gold
  • Defense
  • Travel
Photo credits: TUI

Will Rheinmetall soon reach a new all-time high? An insider thinks so and is buying a sizeable block of shares in the armaments group. The news situation could hardly be better for the DAX-listed company. The price of gold could also break out and rise to USD 2,700 in the next wave, according to a renowned expert. Desert Gold should benefit noticeably from this. The Company's market capitalization is only a fraction of the proven gold resource, and drilling continues. And what is TUI doing? The share is not making any real progress. However, it should benefit from the FTI collapse, and the crucial summer season brings a high booking volume.

time to read: 3 minutes | Author: Fabian Lorenz

Table of contents:

    Nick Luksha, President, Prospect Ridge Resources
    "[...] As we look at four or more zones in more detail from the beginning, investors can expect a continuous news flow that will underscore our vision of the Holy Grail project as a giant opportunity. [...]" Nick Luksha, President, Prospect Ridge Resources

    Full interview


    Desert Gold: Price explosion in the second half of the year?

    Will gold rise to USD 2,700 in the coming weeks? Avi Gilburt believes this is possible. The capital market expert uses Elliott waves in his technical analysis to predict trends. In recent years, he has always been right about gold. Gold shares should also benefit from the potential rally. Desert Gold is perhaps the most exciting explorer at the moment. The Company has already proven 1.1 million ounces of gold on its territory in West Africa. In comparison, the market capitalization of less than EUR 10 million appears to be anything but high. The preparation of the preliminary economic assessment (PEA) is underway. The aim is to develop a Tier 1 mine. This would mean that 2 million ounces of gold would be produced within 10 years. As a first step, Desert Gold intends to construct a heap leach mine and thus start commercial production.

    Parallel to the preparation of the PEA, the Company intends to expand the resource this year through further drilling. The necessary financing is already in place. Desert Gold raised around CAD 1 million at the end of May. The new shares were placed at CAD 0.07. This was above the market price of CAD 0.06 and shows that investors are convinced by the project. The proceeds are to be used in particular for additional RC and air core drilling to expand already known gold zones. Newsflow can be expected in the second half of the year. If this is positive, the share price should rise significantly. And then, of course, there is the takeover fantasy. Numerous large gold producers are active around the Desert Gold area. The Barrick CEO recently spoke of the Company's intention to expand its activities in Mali. There could hardly be a better "fit" than Desert Gold.

    Rheinmetall: Supervisory Board buys shares

    Rheinmetall's shares have undergone a healthy consolidation at a high level in recent months and gathered new strength for a new all-time high. The positive news flow surrounding Germany's largest defense contractor continues. A site for the construction and repair of tanks was recently opened in Ukraine. According to the Ukrainian Ministry for Strategic Industries, the Marder infantry fighting vehicle will initially be maintained and repaired here. In future, however, this will also be possible for Leopard main battle tanks or the Fuchs.

    Dmytro Klimenkov, Deputy Minister of Defense of Ukraine: "The opening of the first joint service center with Rheinmetall in Ukraine decisively strengthens our defense capability. This facility will allow us to ensure rapid repair and maintenance of German equipment directly on Ukrainian soil, thus significantly increasing the efficiency of our armed forces. We are grateful to our German partners for their trust and support. This will allow us to confidently approach victory and integrate into the European system of collective security." Previously, there were reports of an extension of the framework agreement with the German government for the supply of 155-millimeter artillery ammunition and the planned construction of an ammunition factory in Lithuania.

    The management apparently also believes that the current share price level of around EUR 520 is not too high to enter the market. According to a director dealings report, Supervisory Board member Klaus-Günter Vennemann bought Rheinmetall shares worth around EUR 500,000 on Tuesday.

    TUI: Opportunities through FTI bankruptcy and Olympia

    Despite the start of the critical summer season, the TUI share is not making any headway. The share price has been bobbing around EUR 7 since the beginning of the year. The share price jump following competitor FTI's bankruptcy has fizzled out again. TUI anticipates additional business opportunities. They can take over hotel capacities previously booked by FTI. Before this, TUI's booking volume was about 5% higher than the previous year. According to analysts at Bernstein Research, the tourism company is expected to benefit from the Olympic Games in Paris, among other things. The major event would bring tourists from all over the world to France and the whole of Europe. While TUI is expected to be one of the main beneficiaries, analysts do not see much upside potential. They rate the share as "market perform" with a target price of EUR 6.80. In other respects, analysts are currently holding back noticeably with buy recommendations for the TUI share.

    The TUI share does not yet appear ready for a breakout. The situation is different for Desert Gold. The capital increase has been successfully placed, drilling is underway, and if the gold price now plays along, significantly higher share prices should be possible in the second half of the year. A renewed jump in the Rheinmetall share price is also possible at any time, although the share is not cheap, and the construction of new factories takes time and costs money.

    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author

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