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Daimler, Lufthansa, Royal Helium - the crisis is an opportunity for wealth

Mario Hose Mario Hose, Apaton
0 Comments| September 8, 2020

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As is well known, the future is traded on the stock exchange and for this reason investors are always looking for the right time to start a new investment. It can be political decisions or new technological trends that cause sales and profits to soar. In the case of Covid-19, restrictions imposed by governments around the world brought many industries to a standstill. Gradually the picture around the Corona pandemic is clearing up and normality is slowly returning in many parts of society with a new understanding of hygiene. Since mid-March 2020, the peak of the Corona panic on the world's stock markets, many share prices have more than recovered. But there are also some companies that still have potential or are waiting to be rediscovered.


Helium filling station in Cape Canaveral

When rockets or spaceships take off towards space in the US state of Florida, a large amount of fuel is consumed in a very short time to allow the material weighing several tons to take off with crew. Helium is used to regulate the fuel consumption, because the inert gas prevents a vacuum from being created in the tanks during consumption. The demand for helium is now so great that NASA is the largest single customer for the inert gas.


Critical raw material with growing demand

However, helium is most commonly used in medicine. Magnetic resonance tomographs are a large consumer, but helium is also consumed during welding in production. Because the noble gas cannot be produced artificially and there is no substitute material for most applications, the gas is one of the critical raw materials. Helium is usually produced from the ground and for this reason companies looking for the gas are in great demand.


Company in potential key position

There are not many pure helium companies on the stock market where investors can participate in the future development of the commodity. For several months now, Royal Helium (TSXV: RHC) from Canada has been in the focus of interested investors, as the company has secured access to approximately 400,000 hectares of helium licenses in North America, making it one of the largest players in the market. The province of Saskatchewan is the focus of activities. The company says that it is aiming to become one of the largest producers of helium in North America. Given that Elon Musk, for example, has big plans for SpaceX in connection with satellite technologies and space tourism, the demand for helium should continue to grow.


S-Class becomes a beacon of hope

Last week, the Daimler Group (FSE: DAI) presented the new S-Class. The flagship model from Mercedes-Benz comes onto the market with a new edition every seven years. Innovations and current trends are built into the luxury limousine and presented to the target group with high purchasing power. As a prestige object, the S-Class as a state car usually also fulfills its purpose in politics and business.


More features than ever before

For the company, the investment in the model is always a good deal, as the margins are highest for this premium product. The press releases for the premiere of the luxury car comprised 77 pages and accordingly the agony of choice when buying is likely to be correspondingly high. The Daimler share should benefit from this impulse.


Restrictions and rescue

Lufthansa (FSE: LHA) is one of the largest airlines in the world and travel restrictions have hit the company hard. Many flight connections have resulted in many cancellations. Correspondingly large was the damage to the otherwise successful airline through no fault of its own.


Aid package offers potential

The rescue of Lufthansa was in the public interest and the German government has put together an aid package of up to EUR 9.0 billion that management can call on as needed. Last Friday, the company's market value was EUR 5.4 billion and the dimension of the state's helping hand is correspondingly clear. If management can use the government's billion euros wisely, there is a chance that in two or three years the company will be bigger than ever before.


CONFLICT OF INTEREST & RISK NOTE
We would like to point out that Apaton Finance GmbH, the owner of news.financial, 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. Further details can be found in our ´Conflict of Interest & Risk Disclosure´.



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