Two Diamond Stocks To Watch In Upcoming Diamond Supply Gap (Video)

Includes: DDC, LUCRF
by: Sven Carlin


Diamond stocks are in oversold territory but diamond prices are stable.

An analysis of the industry shows that interesting things are about to happen in the next few years.

A dividend yield of 4% is not bad for a stock that has huge upside potential.

A recent Bloomberg article described how diamond stocks performed extremely badly in the last year while diamond prices remained stable. This is the situation I love the most as the possibility to find bargain investments is high.

In the video analysis I discuss the diamond industry, the supply and demand, the growth in demand coming from higher wealth in Asia, the probable supply gap forming from 2019 and two interesting diamond picks.

The first discussed stock is Lucara Diamond Corp. (OTCPK:LUCRF, TSE: LUC), which has a mine in Africa and recently found and sold the third biggest stone in history, the Lesedi La Rona.

Figure 1 Lesedi La Rona

Lesedi La Rona

Source: Sotheby's

The second stock I discuss is a Canadian miner, Dominion Diamond Corp. (NYSE, TSX: DDC), which has great growth potential from the upcoming projects and will be soon taken out. The buyout shows the potential and the value other, cheaper miners have.

Hope you enjoy the video and looking forward to your comments.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

About this article:

Tagged: , , Canada
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here