Menu

Recent Interviews

Lewis Black, CEO, Almonty Industries

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

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


05. November 2021 | 13:56 CET

TUI, Troilus Gold, Lufthansa - These are the turnaround stocks for 2022

  • Gold
Photo credits: pixabay.com

If you think about interesting portfolio mixes today, you will find some lagging stocks on the price list alongside blockbuster shares such as Tesla, Apple & Co. There is still a lot of catching up in the travel industry, for example, and in financial stocks. The permissible question is, of course, whether there will be a real comeback to the "old world" for the travel industry after the extended COVID restrictions. Experts deny this hope, but there are huge restructuring and forward-looking cost-cutting measures in tourism stocks in particular. We take a look at some shares and examine the opportunities.

time to read: 4 minutes by André Will-Laudien
ISIN: TUI AG NA O.N. | DE000TUAG000 , TROILUS GOLD CORP. NEW | CA8968871068 , LUFTHANSA AG VNA O.N. | DE0008232125


Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Full interview

 

Author

André Will-Laudien

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.

About the author


TUI - Image cultivation via climate protection

The share price of TUI, the largest tour operator in Europe, recently went sideways because the recent capital increase must first be digested. From the EUR 1.1 billion in fresh equity received, TUI has already returned EUR 375 million to KfW. The Russian investor Alexej Mordaschow, who stayed with his 32% stake even after the measure, is participating in the restructuring of the Group. Overall, these are good signs for TUI.

The Company is now breaking new ground in terms of investor favor and is implementing the issue of "sustainability" in the Group's strategic decisions. Surveys among investors show that investors today want to focus more on responsible investments with a "green footprint." For TUI, after the introduction of so-called "soft tourism" programs, this looks like additional items on the ESG agenda. What do the concrete measures look like?

Air travel generates a significant release of harmful greenhouse gas. Instead of just acquiring pollution certificates, TUI's first priority is to reduce and avoid adverse environmental impacts. The measures relate to all known set screws in the airline, cruise, hotel and associated administrative units and the travel agencies themselves. Complementary points also provide a green energy supply and strict waste avoidance in the travel domiciles.

The TUI share is currently moving in a narrow band between EUR 2.70 and EUR 2.95. If the share breaks out of the corridor, the momentum should pick up again. However, this may only happen when the operating figures brighten up.

Troilus Gold - Good news from Quebec

Canada is a top tourism destination but also a great resource country. Currently, however, the gates of the North Americans are still closed due to covid; in March 2022, it is expected to open again. While tourism came to an almost complete standstill in 2021, the economy moved forward noticeably, especially in the raw materials sector. In 2020, the gross domestic product in Canada was around USD 1.64 trillion; for 2021, a figure of around USD 1.88 trillion is forecast. That is a considerable increase of 14.6% - there aren't many states that can show that much upward growth in 2020 after the Corona Crisis.

In the state of Quebec, we come across a historic property called Troilus Gold, which is now becoming interesting again under new ownership. The precious metals project is located northeast of the Val-d'Or district and produced 2 million ounces of gold and nearly 70,000 tonnes of copper between 1996 and 2010. The new operating company is currently gearing up to build on the historic successes and is reporting recent drill results.

The latest report from October relates to the ongoing drill program at the Southwest Zone. This area is located approximately 2.5 km southwest of the former main mineralized zones and has become one of the key growth targets on the Troilus property since 2019. Mineral continuity noted between 50 and 100m intervals in the new southwest extension supports the new structurally oriented geological model and suggests a much broader system extending well beyond the existing mineral envelope. The main discoveries are near-surface and characterized by higher than average grade mineralization, a robust sign.

Drilling continues at a rate of approximately 7,000m per month. As a result of continued drilling success at Troilus, which highlights technical developments and growth in the Southwest and J zones, the mineral resource estimate is now expected to be completed in the first half of 2022 in conjunction with the pre-feasibility study.

Troilus shares had recently rallied from CAD 0.68 to CAD 0.92 and have now corrected somewhat. Overall, the reaction to the results has been very positive. With a current share count of around 196 million shares, the market capitalization has reached CAD 160 million. Troilus is an eye-catching story in the Canadian gold sector.

Lufthansa - Back to profitability in 2022?

Back to the travel business once again. Lufthansa also had a huge capital increase in connection with the repayment of state aid. The gross proceeds of the capital increase totaled EUR 2.162 billion. After completing the measures, the Company fully redeemed the drawn amount of the silent participation of the Economic Stabilization Fund of the Federal Republic of Germany (WSF) of EUR 1.5 billion. Thus, a large part of the state stabilization funds has been repaid.

Green flags are now appearing on the horizon again. In the third quarter, Lufthansa's regular business showed clear signs of recovery. Operationally, the crane line is back in the black. However, there could be another loss in the fourth quarter, as Corona restrictions are again looming over the winter. The situation is, therefore, still very unclear at present.

For the full year, the Group assumes that the adjusted operating loss will be halved compared to 2020. At that time, EBIT was minus EUR 7.4 billion. The price-to-book value reached a factor of 4 due to the high level of debt, and the equity ratio has fallen to a dramatic 3.5%. Lufthansa now urgently needs positive cash flow from its operating business to service its financial obligations.

A sword of Damocles for the share price still exists in the announced exit of the state through the sales of WSF. The capital increase has also virtually doubled the share volume. The analysts at Independent Research are relatively pessimistic and continue to rate the LH share as "Sell" with a price target of EUR 5.90. A technical rally to EUR 6.60 is currently underway - let's see how far the rise will last. Keep the stock close on your watch list.


The travel industry may stabilize somewhat, but any engagements must be considered highly speculative. At least TUI and Lufthansa have managed to raise a more considerable amount of equity. Even if a trip to Canada is not possible at the moment, portfolio diversification in Troilus Gold may pay off in the medium term.


Author

André Will-Laudien

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.

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. November 2021 | 14:06 CET | by Carsten Mainitz

MAS Gold, K+S, Klöckner & Co. - For fans of real assets!

  • Gold

Inflation has certainly not yet reached its peak. The scenario of only a short phase of major losses in purchasing power - according to the position of the central banks - must be doubted anyway. Therefore, forward-looking investors should invest in tangible assets such as stocks, bonds or commodities. Anyone thinking of building up or expanding a commodities portfolio should take a closer look at the following stocks. Who is winning the race?

Read

24. November 2021 | 13:05 CET | by Armin Schulz

Gazprom, Tembo Gold, Nvidia - Inflation and rare goods

  • Gold

Inflation has jumped not only in the USA but also in Germany. With an inflation rate of 4.5% in October, we now have the highest value in Germany in almost three decades. One driver of monetary devaluation is the cost of energy, which has become significantly more expensive, especially in the past year. While the oil price was still in negative territory at the beginning of the pandemic, it was recently quoted above USD 80. The chip shortage can be observed in the automotive industry, but graphics cards are also rare and are traded at a significant premium to the recommended retail price. Graphics cards are used for mining cryptocurrencies. It seems that bitcoin is increasingly becoming a value protection asset and competes with gold, the number one inflation protection.

Read

22. November 2021 | 12:50 CET | by Nico Popp

Amazon, Desert Gold, Deutsche Telekom: First movers are rewarded

  • Gold

Is it Christmas again? History is currently repeating itself: incidences are rising, Austria is going into lockdown, and German investors are gearing up for a form of contemplation that no one had expected after the vaccination successes in the summer. But life with a home office and delivery services also has advantages for passionate investors: There is plenty of time to take care of one's finances. Investors can profit since the market does not yet attach much importance to the dangers of inflation and the major central banks' ignorance of inflation. We present three stocks for long home office days.

Read