Watch out for Renk! TUI and Globex Mining share strong!

Globex Mining: Share on the rise

Those who want to profit from the boom in gold and other raw materials should take a closer look at the shares of Globex Mining. The mining incubator offers a broad diversification in the raw materials universe without needing to invest in exploration. The Canadians make the projects available to other companies and thus outsource the costs and risks of exploration. In return, Globex receives cash, stock options and later royalties. In this way, the Company has been able to acquire over 250 projects in recent years. About half of these are in the area of precious metals such as gold, silver, platinum or palladium. However, the Company is also active in rare earths, such as lithium and hydrogen. The share price jumped at the end of September, gaining just over 30%, and is also actively traded in Germany on Tradegate. This places the Company on an upward trend, with a share buyback program providing downside protection.

Due to the numerous projects, Globex provides a steady news stream. Recently, the Company reported particularly positive updates from its gold projects. At the Ironwood project in the Canadian province of Quebec, an 18-hole drilling program was completed, with results from 7 holes disclosed so far. Drilling results to date indicate that the mineralized envelope is expanding at depth and towards the centre of the ore body. This was confirmed by drill hole SIW 24-03, which recently returned 16.63 g/t Au over 11.08 m of true thickness at a vertical depth of 165 m. Previously reported drill hole SIW 24-01 returned 21.78 g/t Au over 2.62 m true thickness at a vertical depth of 142 m.

It was also reported that partner Renforth Resources plans to launch new initiatives at the Parbec gold deposit. The project is also located in Quebec and Globex receives a 3% gross metal royalty. Renforth Resources' next step is to update the gold resources. The old estimate was based on a gold price of USD 1,450. Meanwhile, more than USD 2,600 is being paid for an ounce.

TUI: Analysts divided

Like Globex Mining, TUI is also interesting from a chart perspective. Last week, it looked as if the share price would fall back below the critical EUR 8 mark. However, it has since recovered and is trading above this level again. Analysts remain divided, but some see further upside potential.

Deutsche Bank, for instance, confirmed its "Buy" recommendation. They said that the tourism group had delivered a solid performance last year and that the outlook for the new financial year and the medium term was positive. The analysts consider the TUI share to be fairly valued at EUR 11. However, there were also numerous neutral comments following the publication of the figures. For example, Bernstein Research is sticking with 'Market-Perform', although at least the price target was raised from EUR 6.80 to 7.90. However, analysts are seeing the first signs of a weakening in booking volumes for the winter season. Investors should keep an eye on this development.

Renk: Target price reduced

Renk's shares have also been the subject of a cautious analyst comment. JPMorgan has reduced the price target for the transmission specialist's shares from EUR 30 to EUR 25. The shares are currently trading at just under EUR 20. This means that the price has roughly halved since April and has thus performed significantly worse than the German defense peer group Rheinmetall and Hensoldt. From JPMorgan's point of view, the incoming Renk CEO Alexander Sagel must first rebuild investor confidence. Only then could the stock become attractive again. Until then, the analysts rate the stock as 'Neutral'.

Berenberg is among the bulls for Renk. Its analysts see a fair value for the stock at EUR 33 per share and recommend it as a "Buy". They emphasize that the recent leadership change is unrelated to any negative operational developments.

With the shares of Globex Mining, investors can profit from the commodities boom with risk diversification. The stock also has upside potential from a chart perspective and the share buyback provides downside protection. TUI also looks positive from a chart perspective, although the economic downturn will likely have a negative impact on the desire to travel sooner or later. As the JPMorgan analysts correctly note, Renk has lost a lot of trust. Buying the stock instead of Rheinmetall or Hensoldt is not an obvious choice.