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Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

+1 (647) 438-9766

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Dirk Graszt
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Trettaustr.32, 21107 Hamburg (DE)


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20. October 2021 | 12:17 CET

TUI, Diamcor Mining, Varta: Luxury that pays off

  • Diamonds
Photo credits:

A luxurious trip? A sporty electric coupé or perhaps timelessly beautiful jewelry? There are many ways to indulge in luxury. Some are enduring, and some are rather clumsy consumption. But even when it comes to luxury, there is no arguing about matters of taste. However, it is easier to argue when it comes to investments in companies that benefit to a greater or lesser extent from the penchant for luxury. We discuss three shares.

time to read: 3 minutes by Nico Popp
ISIN: TUI AG NA O.N. | DE000TUAG000 , Diamcor Mining Inc. | CA2525312070 , VARTA AG O.N. | DE000A0TGJ55



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

TUI: Chart technically in no man's land

Especially after the Corona period, many millions of Germans have the desire to travel again. The Black Forest and the Baltic Sea are nice, but summer, sun and beach in the middle of Germany's grimy autumn are nicer. Therefore, some more travelers are likely to get on the plane this year and fly far away. Although even an expensive vacation is over quickly, beautiful memories sometimes remain forever. Tour operator TUI is benefiting from the fact that travel satisfies people's inner longing. A year ago, the Hanover-based Company still suffered from the pandemic, but things are looking up today. Although sales fell significantly by 89% in the first half of the year, the losses of EUR 1.3 billion were kept within limits given the particular situation. About a year ago, the market had feared worse. In the meantime, analysts even see TUI's losses as an indication that cost-cutting measures are taking effect.

In general, TUI has become a leaner company during the pandemic, which can react more quickly to changes. Anyone who switched to the home office within days and made a virtue out of necessity can no longer be shaken so quickly. What may have unsettled employees in recent months also has a positive side. This view may seem cynical, but TUI employees can certainly look positively to the future. Already in the summer, the Company expanded its offering to include new tours in Greece. The discussion about an end to the Corona emergency in Germany is also likely to drive more people willing to travel to travel agencies or the relevant websites. Although TUI has not achieved anything on a three-month horizon, the Company should still have the worst behind it. However, a turnaround only beckons beyond EUR 3.50. The share is not interesting for short-term investors.

Diamcor: Rare opportunity around diamonds

While TUI is a boring but rather down-to-earth stock, the situation with Diamcor Mining is quite different. The Company is one of the few listed diamond producers, and its strategy is to invest in diamond projects that can be put into production in the short term. Diamcor's prime project is the Krone-Endura project, located in the neighborhood of the well-known Venetia mine of the diamond giant De Beers. The property is currently only exploited to a small extent, which indicates further potential in the future. The fact that the Krone-Endura project offers quality at the highest level is also indicated by the supply agreement that Diamcor Mining has concluded with Tiffany & Co. from Canada. The jewelry company has access to 100% of Diamcor's production at current prices. For Diamcor, this provides good predictability and the potential for further business.

Just recently, Diamcor delivered 2,521.17 carats of rough diamonds to customers. In parallel, the Company is working on further reducing costs and delivering more diamonds soon. The share price performance is characterized by regular spurts. In the meantime, the value has remained broadly stable. Investors who want to add an exciting diamond growth story to their portfolio should take a closer look at the share. With a market capitalization of around EUR 20 million, the value is still very small and thus suitable for surprises.

Varta: Where is the fantasy?

Battery Company Varta is far from a surprise - it now seems as if word of the e-car plans of the specialist for button cells has spread to almost every private investor. As a result, the share is currently attracting hardly any investors. Most recently, the share price has been swinging back towards EUR 130, but the upward fluctuations are becoming smaller and smaller. Analysts with price targets just above EUR 100 did not exactly provide for high spirits. The Varta share is likely to rise in the future whenever e-mobility is in particularly high demand on the market, but new highs currently seem to be a long way off.

While the shares of Varta and TUI are currently in no man's land in chart terms, Diamcor has an intact upward trend. Although the share has already risen sharply, this is nothing unusual for a developing small-cap. As the Company is growing faster than planned, further surprises could be in store.


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

Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.

Related comments:

26. October 2021 | 12:27 CET | by André Will-Laudien

LVMH, Diamcor Mining, TUI, Carnival - Another lockdown or profit explosion?

  • Diamonds

The poor are getting poorer, and the rich are getting richer. Demographic studies suggest that in Europe, especially Germany, large sections of the population will be affected by poverty in old age. The reason: falling income in real terms due to high inflation, especially for everyday goods. The official inflation rate of the central banks is window dressing because the hedonically calculated indices include, for example, increases in the performance of mobile devices and thus compensate for the exploding prices of energy and food. Luxury is a particular area of consumption that tends to be attributed to the privileged tiers of the population. Here, the increase in prosperity is supported by inflation on the income side and enables the suppliers of luxury goods to achieve sustained high growth rates.


12. October 2021 | 10:45 CET | by Stefan Feulner

LVMH, Diamcor, Porsche - Demand skyrockets

  • Diamonds

"I have never hated a man so much that I would have given him back his diamonds," Zsa Zsa Gabor is said to have once remarked. Yet the movie star was married no fewer than eight times. The demand for precious stones is increasing, not only because of more marriages but also because of the fear of inflation and currency devaluation. The diamond industry is experiencing increasing demand, especially from the Arab world, the newly strengthened Chinese middle class and India.


27. September 2021 | 12:20 CET | by Carsten Mainitz

Diamcor Mining, TUI, Xiaomi - Consumer stocks are among the winners!

  • Diamonds

To consume or to save? Everyone is faced with this fundamental decision. The individual rate depends on the level of income and the prospects regarding the labor market and economic growth. In the course of the Corona pandemic, private consumption declined significantly. With economic recovery and the removal of lock-downs, personal consumption is picking up again considerably. The companies mentioned above are benefiting from this.